Globalization and Economic Interdependence

Questions and Answers

How has globalization made countries more interdependent? Choose five answers.

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

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

Countries now rely on one another for an employment base. (correct)

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

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

What are the most likely reasons a US corporation would open a factory in China? Choose four answers.

To take advantage of affordable land prices. (correct)

To take advantage of lower labor costs. (correct)

To take advantage of abundant resources. (correct)

To take advantage of favorable tax laws. (correct)

One way to measure economic growth is by using GDP, which stands for?

Gross Domestic Product

Recent improvements in ___ have increased the pace of globalization.

technology 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

Based on the map, which is the best conclusion that can be drawn about the economies of the US and Western Europe?

The US and Western Europe are strong because they have high GDPs. Signup and view all the answers

How have airplanes changed the way the world does business? Choose four answers.

By shortening travel time. Signup and view all the answers

Study Notes

Globalization and Interdependence

Countries rely on each other for vital resources, fostering economic dependence.
Collaborative relationships form around new industries, enhancing technological and economic advancements.
Import and export opportunities promote mutual benefits among nations.
Cheaper products available through international trade decrease costs for consumers.
An increased employment base arises as countries depend on each other for labor markets.

Reasons for US Corporations Opening Factories in China

Affordable land prices in China attract US investments, reducing overhead costs.
Abundant resources available in China support operations and production.
Lower labor costs provide significant savings, promoting profit maximization.
Favorable tax laws in China incentivize foreign corporations to establish manufacturing hubs.

Economic Growth Measurement

Gross Domestic Product (GDP) serves as a key indicator for assessing a country's economic growth.

Impact of Technology on Globalization

Technological advancements have accelerated the pace of globalization, facilitating international connections and trade.

Purchasing Power Parity

Purchasing power parity (PPP) is a method used to compare GDP across different countries, accounting for relative cost of living and inflation rates.

Economic Strength of the US and Western Europe

High GDP levels indicate strong economies for both the US and Western Europe, reflecting their significant impact on global markets.

Effect of Air Travel on Business

Air travel has reduced costs associated with long trips, making international business more feasible.
Shortened travel times enhance the efficiency of business operations and meetings.
New trade markets emerge as global connectivity improves through air travel.
Increased options for travel destinations contribute to greater exchange of goods and ideas internationally.

Description

Explore the pivotal role of globalization in shaping economic interdependence among nations. This quiz covers factors influencing US corporations in foreign markets, particularly China, and how GDP measures economic growth. Test your understanding of international trade dynamics and their implications.