What the syllabus says.
Examine the importance of loans, debt repayment and development aid, remittances foreign direct investment and repatriation of profits in the transfer of capital between the developed core area and the periphery
Examine the influence of governments. world trading organisation and financial institutions such as the WTO world bank and IMF in the transfer of capital.
Casino Capitalism and Mad Money by Susan Strange.
In the comments box below make notes of this video as you go along. The examiner wants to see you understand how the Global Financial System and speculation drives the world economy forward but makes it very vulnerable to cycles of Boom and Bust.
"We do not have warehouse's full of cash, we have information about cash - that is our product"
This quote from Peter Dicken shows how ICT is both driving Casino Capitalism and Mad Money and being driven by it. New faster and larger digital networks are being created all the time. Now even hundredths of a second on a transaction can be the difference between boom and bust.
Think Zone. How can vast sums of money be wiped of the stock exchange? Did this wealth exist? Does it matter?
For next week. As a class please makes notes on Off Shore Financial Centres, the World Bank, IMF and WTO. You should divide the task up between the class. What / who are they and how do they fuel Global Capitalism, Casino Capitalism and Mad Money?
You will be asked to present your ideas.
