Economic Globalization Flashcards

Questions and Answers

In countries such as China, globalization has led to?

A small middle class

A large population at the poverty level

A trade agreement with other nations

A better standard of living (correct)

Why do companies choose to outsource work?

To cut transportation costs

To improve products

To increase profits (correct)

To develop local resources

How can businesses best take advantage of globalization?

By increasing employment and production

By transporting resources from distant locations (correct)

By streamlining equipment to increase production

By communicating with suppliers and buyers

A multinational organization is defined as a business that?

Operates in multiple countries Signup and view all the answers

What are the purposes of international economic organizations? (Check all that apply)

To encourage trade in developing countries Signup and view all the answers

What is the primary purpose of the European Union?

To allow more trade between countries Signup and view all the answers

NAFTA can be defined as?

An agreement between bordering nations Signup and view all the answers

How did joining NAFTA affect the Mexican economy?

It helped improve the economy Signup and view all the answers

Which of the following causes the most problems in countries with low economic growth?

Rapid population increase Signup and view all the answers

Globalization has affected developed countries by?

Turning their focus to providing services Signup and view all the answers

Study Notes

Economic Globalization Overview

Globalization in countries like China has improved living standards despite persistent poverty and a small middle class.
Companies outsource primarily to boost profits rather than for product improvement or local resource development.

Business Strategies in Globalization

Successful businesses leverage globalization by transporting resources across long distances, enhancing their operational efficiency.
Communication with suppliers and buyers is key, but it is the logistics of resource transportation that maximizes advantages in globalization.

Multinational Organizations

A multinational organization operates across multiple countries, distinguishing it from enterprises that rely solely on outsourcing.

International Economic Organizations

These organizations aim to promote fair and successful trade, facilitate trade in developing nations, and resolve trade disputes, playing a crucial role in global economic interactions.

European Union

The primary purpose of the European Union is to foster increased trade among member countries, supporting economic cooperation and integration.

NAFTA

NAFTA is defined as an agreement between bordering nations, aimed at reducing trade barriers and enhancing economic collaboration, particularly significant for the economies of Mexico and the United States.

Impact on Mexican Economy

Joining NAFTA positively impacted the Mexican economy, contributing to improvements rather than hindering growth, contrary to some expectations.

Challenges in Low-Growth Economies

Rapid population growth presents significant challenges for countries with low economic development, often exacerbating issues related to resource allocation and public services.

Globalization's Effect on Developed Countries

Developed nations have shifted focus towards providing services as a result of globalization, affecting workforce dynamics and employment trends in various sectors.

Description

Test your knowledge on economic globalization concepts with these flashcards. Each card presents a scenario or question related to globalization, prompting you to choose the correct answer. Perfect for anyone looking to deepen their understanding of global economic dynamics.