Globalization and Business Concepts

Questions and Answers

How has globalization made countries more interdependent? (Select all that apply)

Countries rely on each other for cheaper products. (correct)

Countries now rely on one another for chances to import. (correct)

Countries now rely on one another for vital resources. (correct)

Countries now rely on one another for an employment base.

Countries now rely on each other for new industries. (correct)

Countries now rely on one another for chances to export. (correct)

How have airplanes changed the way the world does business? (Select all that apply)

By opening up new trade markets. (correct)

By increasing hiring opportunities.

By making long trips less expensive. (correct)

By making long trips in less time. (correct)

By increasing travel options. (correct)

The images show the cost of the same bike in the United States and Britain. The concept shown in the images is known as?

Purchasing power parity. (correct)

Factors of production.

Gross domestic product.

Exchange rates.

The business practice of hiring workers in another country is known as?

Outsourcing. Signup and view all the answers

Based on the graph, what conclusion can be drawn about the US economy?

The economy suffered a setback in 2009 before rebounding in 2010. Signup and view all the answers

Which is the best example of outsourcing?

A US shoe company opens a factory in China and hires Chinese workers to make shoes. Signup and view all the answers

Purchasing power parity is used to compare the gross domestic product between?

Countries. Signup and view all the answers

Gross domestic product tracks economic growth by measuring all goods and services?

Produced by an economy. Signup and view all the answers

Global trade provides consumers with?

More options and lower prices. Signup and view all the answers

Globalization leads to more trade between?

Countries. Signup and view all the answers

Study Notes

Interdependence through Globalization

Countries have become increasingly reliant on each other for essential resources and industry development.
Import and export opportunities have boosted international trade, fostering economic ties.
Cheaper product availability encourages reliance on foreign markets.

Impact of Air Travel on Business

Air travel has reduced the cost of long-distance trips, facilitating international business.
Faster travel times have optimized business operations and logistics.
New trade markets have emerged due to improved accessibility via air transport.
Increased travel options lead to expanded hiring opportunities and corporate mobility.

Purchasing Power Parity (PPP)

PPP measures the relative value of currencies by comparing the cost of the same goods in different countries.
It is a crucial concept for economists assessing economic health across nations.

Outsourcing Defined

Outsourcing refers to the practice of hiring workers from another country to reduce operational costs.
This strategy often leads to significant savings and improved efficiency for companies.

U.S. Economic Trends (2009-2017)

Economic data indicates a setback in the U.S. economy during 2009, with recovery beginning in 2010.
Graphical analysis is essential for understanding economic fluctuations over time.

Example of Outsourcing

A U.S. shoe company moving operations to China and employing Chinese workers exemplifies outsourcing practices.
This strategy highlights globalization's impact on labor distribution and cost management.

Measuring GDP and Economic Growth

Gross Domestic Product (GDP) measures the total production of goods and services within an economy over time.
It serves as a primary indicator of economic performance and growth.

Benefits of Global Trade

Global trade enhances consumer choice and drives down prices by providing access to a wider variety of products.
Competition from international markets often leads to cost benefits for consumers.

Trade Relationships Fostered by Globalization

Globalization significantly increases trade activity among countries, boosting economic interrelations.
Greater business interactions created by globalization shape modern economic landscapes.

Description

This quiz explores the intricate relationship between globalization, international trade, and business practices. Topics include the significance of air travel in facilitating global commerce, the concept of Purchasing Power Parity, and the implications of outsourcing in the modern economy. Test your understanding of how these elements interconnect to shape the global marketplace.