Jomo Kwame Sundaram: The Global Market and Nation States (5/7)

The video discusses the challenges of financial globalization, highlighting the net flow of funds from poorer to richer countries, the role of FDI, and the volatility introduced by 'hot money'. It examines the implications of capital flows, financial fragility, and the widening global imbalances. The speaker also addresses inequality within and among countries, emphasizing the need for national reforms, prudential risk management, and broader financial inclusion. The importance of corporate social responsibility is also touched upon.

What is one of the main challenges of financial globalization for developing countries?

• Net flow of funds from capital-rich to capital-poor countries

• Increased trade barriers

• Net flow of funds from capital-poor to capital-rich countries

• Decreased foreign investments

What is a significant characteristic of Foreign Direct Investment (FDI) in the 1990s?

• Primarily Brownfield investments

• Focused on technology sectors

• Evenly split between Greenfield and Brownfield investments

• Mostly Greenfield investments

Which region is noted for developing more industrial capacities compared to another?

• Latin America compared to Northeast Asia

• Southeast Asia compared to Northeast Asia

• Africa compared to Southeast Asia

• Northeast Asia compared to Southeast Asia

What economic issue is associated with capital inflows in developing countries?

• Stable economic growth

• Increased savings rates

• Dutch disease

• Decreased consumer spending

What is a key focus of national reform priorities discussed in the video?

• Reducing trade tariffs

• Implementing capital controls

• Increasing foreign aid

• Promoting tourism

What is the irony mentioned in relation to financial inclusion?

• It led to the subprime mortgage crisis

• It decreased access to credit

• It reduced economic inequality

• It was only beneficial for large corporations

What initiative is associated with corporate social responsibility at the United Nations?

• Global Initiative

• Global Compact

• Corporate Responsibility Program

• Sustainable Development Goals