The Cause of the Financial Crisis and Globalization Critique

Topic

The cause of the Financial Crisis and Globalization Critique

Instructions

Choose TWO questions from the “Question choices” section below.
For each question:
1. Identify two or three KEY POINTS you will include and develop in your final answer.
2. Identify TWO key sources or texts that you will refer to in your answer.
a. NOTE: These MUST be authors, sources or texts referred to in the module reading list, on the VLE, or in class. Sources may include any official institution, NGO or governmental body.
b. Provide a full Harvard style reference.
3. Include one QUOTE that you will include in your answer, and reference it (according to Harvard guidelines).
Aim for 300 words per question.

Question choices:
1. Suggest ways to improve stability and justice in the contemporary International Political Economy.
2. Trace the main developments in the International Political Economy since the Second World War.
3. Explain the major causes of the 2008-10 financial crisis and explain why the global economy appeared to recover from 2011 onwards.
4. Offer a brief critique of contemporary economic globalisation.
5. What are the main characteristics of the leading International Relations theories? Which seems to you to be the most convincing?
6. Explain the impact of contemporary economic globalisation on an emerging or developing economy of your choice.
7. How have firms responded to the opportunities provided by contemporary economic globalisation since the end of the Cold War?
8. The sole purpose of a business is to maximise profit for the benefit of shareholders. Discuss.
9. Provide a critical assessment of the policy prescriptions that make up the so-called Washington Consensus. What criticisms can you make of Neoliberal ideology?
10. What changes to the IPE would in your view make the world a better place? Are these recommendations feasible?
Words: 600
References: 4 references minimum (Harvard).

Answer preview

The 2008 financial crisis resulted from the mortgage bubble and economic downturn. According to Lapavitsas (2009, p. 8), the crisis occurred “after the exhaustion of the US housing boom” in 2006, a scenario that cases a declining trend of prices by between 5 and 10 percent. The trend continued in 2008, fueled by the undue issuance of residential mortgages. As a result, the unreliable lending practice continued, particularly in the sub-prime mortgage which bolstered prices by increasing demand, while creating unrecognized risks in balance sheets of lenders (Gelos et al., 2009).

Word count: 757