Podcast
Questions and Answers
What is projected for the global working-age population by 2050?
What is projected for the global working-age population by 2050?
What was the fertility rate per woman in 2019?
What was the fertility rate per woman in 2019?
Which group of countries is projected to constitute more than 40% of the economic share of world growth by 2025?
Which group of countries is projected to constitute more than 40% of the economic share of world growth by 2025?
Which countries are included in the MIST group?
Which countries are included in the MIST group?
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What is the term for the amount invested in property, plant, and equipment in another country?
What is the term for the amount invested in property, plant, and equipment in another country?
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Which country is NOT part of the E7 group of major emerging economies?
Which country is NOT part of the E7 group of major emerging economies?
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Which of the following statements about life expectancy is TRUE?
Which of the following statements about life expectancy is TRUE?
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By 2050, how much higher is the E7 economy expected to be compared to the G7 economy?
By 2050, how much higher is the E7 economy expected to be compared to the G7 economy?
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What is a primary concern of antiglobalization activists regarding corporations operating in poorer countries?
What is a primary concern of antiglobalization activists regarding corporations operating in poorer countries?
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What organization regulates international trade and investment rules globally?
What organization regulates international trade and investment rules globally?
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Which trade agreement replaced NAFTA in 2020?
Which trade agreement replaced NAFTA in 2020?
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Which of the following statements is true about the European Union (EU)?
Which of the following statements is true about the European Union (EU)?
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The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) includes countries from which region?
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) includes countries from which region?
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What was one of the main goals of the North American Free Trade Agreement (NAFTA)?
What was one of the main goals of the North American Free Trade Agreement (NAFTA)?
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What characterizes the members of the World Trade Organization (WTO)?
What characterizes the members of the World Trade Organization (WTO)?
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Which of the following agreements is specifically focused on trade between the U.S. and the Dominican Republic?
Which of the following agreements is specifically focused on trade between the U.S. and the Dominican Republic?
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What primarily characterizes a market economy?
What primarily characterizes a market economy?
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Which statement accurately describes a mixed economy?
Which statement accurately describes a mixed economy?
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What is the potential impact of the Russian attack on Ukraine regarding the EU?
What is the potential impact of the Russian attack on Ukraine regarding the EU?
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What major challenge is North America facing as a trading bloc?
What major challenge is North America facing as a trading bloc?
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What trend has been observed regarding Japan's overseas investments since the 1990s?
What trend has been observed regarding Japan's overseas investments since the 1990s?
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Which aspect of Russia's economy has contributed to its relative emergence in recent years?
Which aspect of Russia's economy has contributed to its relative emergence in recent years?
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What could be a consequence of retaining trade barriers among EU member countries?
What could be a consequence of retaining trade barriers among EU member countries?
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How has the global response to the Russia/Ukraine war primarily affected Russia's economy?
How has the global response to the Russia/Ukraine war primarily affected Russia's economy?
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What is a significant obstacle for multinational companies operating in China?
What is a significant obstacle for multinational companies operating in China?
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What is one of the main concerns foreign businesses face in China?
What is one of the main concerns foreign businesses face in China?
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Which country has experienced considerable GDP growth but is now slowing down?
Which country has experienced considerable GDP growth but is now slowing down?
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What issue has created tension in trade relations between China and developed countries?
What issue has created tension in trade relations between China and developed countries?
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Which of the following countries is a member of the ASEAN bloc contributing to regional growth?
Which of the following countries is a member of the ASEAN bloc contributing to regional growth?
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What role do chaebols play in South Korea's economy?
What role do chaebols play in South Korea's economy?
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What contributes to the growth of Taiwan's economy?
What contributes to the growth of Taiwan's economy?
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Which of the following statements about the Russian economy is true?
Which of the following statements about the Russian economy is true?
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What is a significant reason that makes India attractive to multinationals?
What is a significant reason that makes India attractive to multinationals?
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Which country in South America is noted for having a stable government?
Which country in South America is noted for having a stable government?
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What economic challenge is primarily faced by South American countries?
What economic challenge is primarily faced by South American countries?
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Which region is highlighted for having economically rich countries due to oil?
Which region is highlighted for having economically rich countries due to oil?
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What is a key factor contributing to the economic promise of the Middle East despite its challenges?
What is a key factor contributing to the economic promise of the Middle East despite its challenges?
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Which South American country is described as having one of the strongest economies but experiencing inflation?
Which South American country is described as having one of the strongest economies but experiencing inflation?
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Why are some Middle Eastern and Central Asian countries considered economically rich?
Why are some Middle Eastern and Central Asian countries considered economically rich?
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Which of the following statements about Chile is true?
Which of the following statements about Chile is true?
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Study Notes
Global and Regional Integration
- World Trade Organization (WTO) is the global organization governing international trade and investment rules
- WTO represents 166 members - over 98% of global trade and GDP
- NAFTA, now replaced by USMCA, removed trade and investment barriers between the United States, Canada, and Mexico
- USMCA maintains key provisions of NAFTA but introduces minor changes
Other Trade Agreements
- U.S.–Singapore Free Trade Agreement and CAFTA-DR were negotiated in the same spirit as NAFTA/USMCA
- European Union (EU) consists of 27 member states and strives to become a unified marketplace
- CPTPP is an Asia-Pacific trade agreement involving Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, Vietnam, and The United Kingdom
Changing Global Demographics
- Global working-age population declined in 2016 and is projected to reduce by nearly 5% worldwide by 2050
- Fertility rate halved, declining from 5 children per woman in 1950 to 2.4 in 2019
- Global life expectancy increased due to advancements in healthcare and technology
- Spending on healthcare services continues to rise rapidly, while demand for goods like cars and computers declines
The Shifting Balance of Economic Power
- BRIC (Brazil, Russia, India, and China) are expected to account for over 40% of global economic growth by 2025
- N-11 (Bangladesh, Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan, Philippines, South Korea, Turkey, and Vietnam) are the next wave of emerging markets
- MIST countries (Mexico, Indonesia, South Korea, and Turkey) are attractive due to young populations and favorable economic growth conditions
- E7 (Brazil, China, India, Indonesia, Mexico, Russia, and Turkey) is projected to be 50% higher than G7 (USA, Canada, France, Germany, Italy, UK, and Japan) by 2050
- Foreign direct investment (FDI) refers to investments in property, plant, and equipment in another country
Global Economic Systems
- Market economy: Private entities own property, monitor production and distribution of goods and services, while the state supports competition and efficiency
- Mixed economy: Combines elements of market and command economies. Certain sectors are privately owned, while others are subject to government planning
- Command economy: Government explicitly controls the price and supply of goods and services
Established Economies
- North America, comprising the U.S., Canada, and Mexico, holds a combined purchasing power of over $28 trillion
- The EU aims to eliminate trade barriers among member countries
- Maintaining a unified EU may be challenging following the UK's withdrawal in 2020
- Japan's overseas investments have steadily declined since the 1990s due to economic slowdown, management issues, and competition from emerging economies
- Japan remains a significant international competitor and holds a strong position in the Pacific Rim, North America, and Europe
### Emerging and Developing Economies 1
- Russia's economy, reliant on oil and gas resources, has seen poverty decline and a middle class expansion since 1991
- The Russia/Ukraine war has led to sanctions and economic isolation
- Foreign companies are withdrawing from Russian markets, putting pressure on those still operating
- Russia's economy faces years of instability and political problems
- While Russia, Czech Republic, Hungary, and Poland receive most media focus, other Eastern European countries are also struggling
- Key challenges for these nations include maintaining social order, establishing law, rebuilding infrastructure, and reactivating factories and businesses
Emerging and Developing Economies 2
- China's GDP growth has slowed considerably
- MNCs face difficulty doing business in China due to the balancing act between communism and capitalism
- Intellectual property concerns and national policies that favor domestic companies create a challenging and high-risk environment for foreign businesses
- Trade relations between China and Western nations remain strained
- Trump implemented tariffs on Chinese imports, leading to retaliatory tariffs from China
- The value of China's currency is a contentious issue, with some arguing it is artificially low, giving China an unfair advantage
Emerging and Developing Economies 3
- ASEAN countries are fueling regional growth and development
- South Korea's chaebols (conglomerates) include Samsung, Hyundai, and LG Group
- Hong Kong has been a hub for multinational operations in Asia
- Singapore is a model for urban planning and a financial center in Southeast Asia
- Taiwan's economy, driven by increasing foreign trade, continues to grow steadily
- Thailand, Malaysia, Indonesia, and Vietnam have seen economic development despite the lack of significant natural resources
Emerging and Developing Economies 4
- India, with a population of 1.4 billion, faces political and economic challenges but has one of the highest GDP growth rates globally
- India's strong English fluency, education system, and IT expertise attract multinationals
- The shift of software and high-value-added services to India has created a large middle and upper-class market
Developing Economies on the Verge 1
- South American countries have faced economic difficulties, including high foreign debt and inflation
- Brazil, with a large, well-educated population, ample natural resources, existing industrial base, and strategic location, has attracted foreign investment
- Chile has one of the stablest and best market-based economies in Latin America
- Argentina has a strong economy but struggles with recurring economic issues such as inflation and external debt
- South American countries are seeking business with the US and discussing free trade with the EU
Developing Economies on the Verge 2
- Israel, Arab countries, Iran, Turkey, and Central Asian countries of the former Soviet Union form a special group of emerging nations
- Some countries in this region are considered economically rich due to oil resources
- These countries face complex problems but hold future economic promise
- The region has been in the news due to conflicts and terrorism concerns
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Description
Test your knowledge on global trade agreements and institutions like the WTO and USMCA. Explore the implications of changing demographics on trade and investment. This quiz covers various regional agreements, including the EU and CPTPP.
