Global Economy Lesson 3 Quiz

Facilitators of Economic Globalization

• Actors that facilitate economic globalization include transnational corporations (TNCs), governments, and international institutions.

Modern World System

• In the Modern World System, nations are structured into a hierarchical system, with core countries at the top, periphery countries at the bottom, and semi-periphery countries in between.

Goals of Economic Globalization Actors

• The primary goal of economic globalization actors is to maximize profits and gain economic advantages.

Transnational Corporations (TNCs)

• An example of a TNC is Nike, which operates in multiple countries around the world and has a significant impact on the global economy.

Impact on Local Industries

• The main impact of economic globalization on local industries is increased competition, which can lead to the decline of local industries that cannot compete with cheaper imported goods.

Focus of Economic Globalization

• The main focus of economic globalization is to increase trade, investment, and economic growth across national borders.

Trade Liberalization

• The purpose of trade liberalization is to reduce or eliminate trade barriers, such as tariffs and quotas, to increase international trade and economic growth.

Protectionism

• The main characteristic of protectionism is the use of policies, such as tariffs and quotas, to protect domestic industries from foreign competition.

Outsourcing

• The primary outcome of outsourcing in the context of economic globalization is a shift of jobs from high-wage countries to low-wage countries, often leading to job losses in the high-wage countries.

Trade Bloc Agreements

• The key feature of a trade bloc agreement is the reduction or elimination of trade barriers among member countries, creating a free trade area.