GEOG 216 Lecture Notes - Fixed Capital, Cash Flow, Capital Flight
16 Dec 2012
School
Department
Course
Professor
Document Summary
Really shows global economy works around one commodity, oil price shoots up world economy, opec, cartel companies are the producers, but biggest consumers are united states and china, middle east controls 60% of production. Lender: chargers the borrower interest on % of the outstanding loan each year (bank) Borrower: pays back part of the money borrowed plus interest. Concessional lending: loans at below-market rates of interest or interest-free loans & grants. Foreign direct investment to create infrastructure doesn"t create debt. 1950s to 1970s (coming out of ww2) Time of a lot of production and consumption. Start of baby boomers, babies+child=lots of consuming and buying stuff. Western banks, invest little in poorer regions (get concessional lending , eg imf, world bank) Lots of economic activity and growth (has certain conditions, fixed interest rates) Period of buildup of eurodollars in western european banks. Oil price shock (1970s) opec cartel decrease oil supply which lead to an increase in oil prices.
