Global Economy & International Trade

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Questions and Answers

Match the economists with their key ideas:

Karl Marx = Conflict theory and critique of capitalism Adam Smith = Father of Capitalism and laissez-faire economics Willy Brandt = Chaired the Independent Commission on International Development Frieden = Defined 'unconditional most-favored nation' in the context of global trade

Match the trade agreements with their primary focus:

GATT = Reduction of tariff barriers WTO = Reduction of non-tariff barriers and broader trade liberalization GATS = Trade in services TRIPS = Protection of intellectual property rights

Match the global economic concepts with their characteristics:

Global Value Chains = Creation of value through different stages from production to disposal Offshore Outsourcing = Contracting work to companies located in other countries International Trade = Exchange of goods and services between different countries Global Investment = Investment strategy not constrained by geographical boundaries

Match the factors contributing to global economic growth with their descriptions:

Privatization = Transfer of ownership from the government to the private sector Deregulation = The process of removing or reducing state regulations Foreign Direct Investment (FDI) = Investment in a business in one country by an entity based in another country Trade Liberalization = Removal or reduction of restrictions or barriers on the free exchange of goods between nations Signup and view all the answers

Match the characteristics to the type of organization:

Intergovernmental Organization (IGO) = Composed primarily of sovereign states, established by a treaty Supranational Organization = Extends beyond the borders of three or more states, seeks to promote unity Non-Governmental Organization (NGO) = Independent of governments, aims to influence governments or provide services Multinational Corporation (MNC) = Owns and controls production in multiple countries aside from their home country Signup and view all the answers

Match the concepts with their definition or description:

Global Economy = Interconnection of worldwide economic activities between multiple countries Globalization = Process by which economies, societies, and cultures integrate through trade, communication, and transportation International Finance = Money transfer at a faster rate between countries, key feature of global economy International Trade = Exchange of goods and services between different countries, impact of globalization Signup and view all the answers

Match the aspects of the Bretton Woods System with their roles:

Fixed Exchange Rates = Central banks maintained rates between their currencies and the dollar 'Unconditional Most-Favored Nation' = Governments offer the same trade concessions to all International Monetary Fund (IMF) = Provided stability and security to the monetary order World Bank = Envisioned for global investment but later surpassed by US aid Signup and view all the answers

Match the global shifts with their impacts:

Emergence of global companies = The rise of companies with huge assets in almost all countries in which they operate. Increased international competition = Encouraging competitiveness between countries in various markets. The increase in world population = Led to emerging markets growing economically. Increased migration of the labor force = Advantageous for the recipient country as well as for the workers. Signup and view all the answers

Match the economic theories with their implications:

Free Trade = Allows countries to specialize in the production of those goods in which they have a comparative advantage. Increased specialization of goods production = Led to advantageous economic factors such as lower average costs and lower prices for customers. Rise of the global economy = Become easier for countries to attract short-term and long-term investment Increased competition between countries = Helping in development of underdeveloped countries Signup and view all the answers

Match the actors in globalization with their roles:

United Nations = Seeks to promote economic, political, or cultural unity between members World Trade Organization = Forum for international negotiations on trade, with member countries participating in successive 'rounds' of discussions Multi National Companies = Also known as global corporation, is an entity that owns and controls production of goods or services World Bank = Provides funds to government-sponsored programs. Signup and view all the answers

Match the given key terms with their descriptions:

Human capital = Used as one of the factors for Population Technology = Used as one of the factors for Infrastructure Law = Used as one of the factors for Infrastructure Global trade = A key idea that requres governments to offer the same trade concession to all Signup and view all the answers

Match the following terms with their meanings:

Brandt Line = An invisible line across the world that divides the rich north from the poor south Tariffs = Duties and surcharges Quotas = Economists often view the easing or eradication. Economic mobility = Consider as major factor in competing in the global arena. Signup and view all the answers

Match the following impacts of Globalization with their description:

Movement of labor = Increased migration of the labor force is advantageous for the recipient country as well as for the workers Increased investment = Become easier for countries to attract short-term and long-term investment Restrictions on the import and export of goods and services = Can potentially hamper the economic stability of countries Increased economies of scale = The specialization of goods production in most countries has led to advantageous economic factors such as lower average costs and lower prices for customers Signup and view all the answers

Match the following characterstics with their specific Global Economy:

Global Investment = This refers to an investment strategy that is not constrained by geographical boundaries. International Trade = It refers to the exchange of goods and services between different countries. Globalization = National and regional economies, societies, and cultures have become integrated. International Finance = Money can be transferred at a faster rate between countries Signup and view all the answers

Match the effects of having Market Integration on Market Development

Equal price = Difference in the prices in integrated market should be equal if they are well integrated. Helps to reduce market failure = Helps to reduce market failure More products to sell = Market integration provides opportunity to expand market coverage Encourage global openness = In many countries the welfare of the state global openness encourage Signup and view all the answers

Match the components of the structures of globalization

Actors in Globalization = The result of globalization Modern World System = Boundaries, structures, member groups Global Economic Integration = The trends to civilization Supranational Organization = Seek to promote economic, political, or cultural unity between members. Signup and view all the answers

Match the following global aspects with its description:

Global companies = Have unity of control. Advanced technology = Allows them to use products and their company. Capital-intensive technology = Allows them to use the best technology available Best managers = Employ managers who are capable of handling large amounts of funds, Signup and view all the answers

Match the organizations with their corresponding location:

World Trade Organization = Geneva, Switzerland World Bank = Washington D.C. Independent Commission for International Development = Germany United Nations = New York Signup and view all the answers

Match the following elements with the given description:

Core = Strength of the state machinery Periphery = Was later promoted, as a result of the changing geopolitics Semiperiphery = A necessary structural element in a world-economy Amnesty International = Advocacy NGOs, which aim to influence governments Signup and view all the answers

Match the following economic ideas:

Economies = Based on the productions and exhange of goods and services Global economy = Excellent method for countries to exchange goods and services. International trade = The exchange of a variety of product that helps in the global economy. Microeconomics = The study of the behaviour of households, individuals, and firms with respect to the allocation of resources and decision-making Signup and view all the answers

Match the following characteristics with the correct stage in a global value chain:

Commodities = Often the first link in the chain, driving demand and escalating prices Production Networks = Involve decentralization of production across various countries Supply Chains = Operate through various economic networks Global Value Chains = Creation of value through different stages, from product creation to disposal Signup and view all the answers

Match these global economic concepts with their definitions regarding effects on international trade:

Outsourcing = Contracting work to companies in other countries, affecting economic, healthcare, and military domains. Offshore Outsourcing = Contracting work to companies located in other countries, particularly relating to low-wage products. Trade Liberalization = Involves the removal or reduction of restrictions or barriers, such as tariffs and quotas, to promote free trade. Global Investment = An investment strategy unconstrained by domestic geographical boundaries, facilitating money transfers between countries Signup and view all the answers

Match the following key figures or organizations with their roles in shaping global economic policies and structures:

Bretton Woods System = An attempt to create international economic cooperation and encourage the free flow of capital around the world after World War II. International Monetary Fund (IMF) = Aims for macroeconomic stability for member nations and seeks to promote economic growth globally. World Trade Organization (WTO) = A multilateral organization focused on trade, aiming to reduce tariff and non-tariff barriers. General Agreement on Trade and Tariffs (GATT) = Sought to facilitate the liberalization of trade by the reduction of tariff barriers. Signup and view all the answers

Match the following concepts with their characteristics in the context of the modern world system:

Core = Characterized by high levels of economic complexity, strong state machinery, and dominance in global trade. Periphery = Involves the extraction of raw materials and labor exploitation, leading to economic dependency. Semi-periphery = Serves as a buffer between the core and periphery, with some industrialization and a mix of core and periphery characteristics. World-System Theory = A social system with boundaries, structures, member groups, rules of legitimation and coherence. Signup and view all the answers

Match the following economic factors with their direct influence on global economic growth:

Privatization = The transfer of ownership, property, or business from the government to the private sector. Trade Liberalization = Removes or reduces restrictions or barriers to promote free exchange of goods between nations. Foreign Direct Investment (FDI) = A strategy of investment in the form of a controlling ownership in a business in another country. Global economy = A network of worldwide economic activities that take place between multiple countries Signup and view all the answers

Flashcards

Economy

The basic foundation which should be given primary importance that influences society and politics.

Galleon Trade & Silk Road

Economic relationship established when the Philippines bartered with China (porcelains, silk) and the oldest international trade route introduced by China.

Bretton Woods System

An attempt to create institutional structures which would foster international economic cooperation and encourage the free flow of capital around the world.