Democracy and Production Quiz 2019

Globalization is the process of increasing interconnectedness among countries through exchange of goods, services, information, and ideas.

Global logistics involves the efficient planning, execution, and control of the flow of goods, services, and information across international borders.

The process of producing goods or services in a country other than the one where the company is based.

Different types of facilities for producing products or services, considering factors such as location and production processes.

The process of making choices that consider moral principles and values.

The responsibility of a company to act in a way that benefits society and the environment.

Costs that are not immediately obvious.

Deciding where to locate production facilities based on strategic factors.

A political and social system emphasizing the needs and goals of the group over individuals.

A political and social system prioritizing individual rights, freedoms, and goals over group needs.

A period of geopolitical tension between the US and the Soviet Union and their respective allies.

A major economic downturn that hit many countries during the 2000s.

Principles and values supporting self-government, freedom and equality.

Economic systems based on supply and demand.

Economic systems where the state typically plays a significant role.

Public demonstrations against government decisions or policies

Countries classified as free by Freedom House, promoting individual rights, political freedom, and a free press.

Countries categorized as partly free by Freedom House, with some limitations on individual rights and political participation.

Countries characterized by limited or no individual rights, restricted political participation, and often authoritarian rule.

The highest number of democracies recorded in history (123 countries in 2006) before a recent decline.

A global trend towards democratization, particularly in Eastern Europe, Latin America, and Africa, despite recent setbacks.

The total number of potential customers in a particular market. It reflects the demand for a company's products or services.

The economic resources available to consumers in a market, such as income, assets, and savings.

The likelihood that a market will expand and create new opportunities for a company.

The benefit a company gains by being the first to enter a market.

Bribery and corruption are more prevalent in totalitarian states, leading to increased costs for businesses compared to democratic nations.

Underdeveloped economies with limited infrastructure can raise costs for businesses, as they may need to establish their own supply chains.

The potential for political instability, social unrest, or government changes to disrupt a company's operations.

The possibility of economic instability, such as high inflation or government debt, harming a company's operations.

Resources like land, labor, and capital that a country possesses and uses for production.

A country should specialize in producing and exporting goods where it has a lower opportunity cost compared to other countries.

The observation that the US, a capital-rich country, actually exports labor-intensive goods and imports capital-intensive goods, contradicting the comparative advantage theory.

As products mature, the optimal location for their production shifts, affecting trade patterns.

Production is often located in the country where the product was invented due to high demand and innovation.

Production shifts to countries with lower labor costs as demand becomes more global.

Production may shift again or cease as demand slows down and competition increases.

Countries that have a competitive advantage in certain sectors will specialize in those areas and export their products, while importing goods they lack a competitive advantage in.

This theory suggests countries can benefit from trade even without differences in resources or technology. Early movers in a specific product can gain a dominant export position due to factors like economies of scale and learning curves.

This theory explains trade patterns based on differences in factor endowments, such as labor, capital, and land. It argues that countries export goods that use their abundant factors intensively.

A tax imposed by a government on imported goods. This can be a fixed amount per unit or a percentage of the value of the import.

A type of tariff where a fixed charge is imposed on each unit of a good imported.

A type of tariff where a percentage of the value of an imported good is charged as a tax.

Policies that actively promote free trade by reducing barriers to international commerce. This could involve lowering tariffs, removing trade restrictions, or promoting trade agreements.

Various tools governments use to influence international trade. These include tariffs, quotas, subsidies, and other methods used to regulate imports and exports.