Podcast
Questions and Answers
What is a defining characteristic of a trading bloc?
What is a defining characteristic of a trading bloc?
- Common currency among member nations
- Unified military policies
- Reduction of trade barriers (correct)
- Cultural exchange agreements
Which of the following is a potential positive consequence of trading blocs?
Which of the following is a potential positive consequence of trading blocs?
- Stricter immigration laws
- Easier access to foreign markets (correct)
- Improved environmental protection
- Increased competition among local businesses
What could be a negative consequence of forming a trading bloc?
What could be a negative consequence of forming a trading bloc?
- Improved economic stability
- Enhanced political collaboration
- Strengthened social ties among nations
- Dependency on member nations for resources (correct)
In what way could a trading bloc impact economic policies?
In what way could a trading bloc impact economic policies?
How might trading blocs affect political relations among member states?
How might trading blocs affect political relations among member states?
Flashcards
What is a trading bloc?
What is a trading bloc?
A group of countries that have agreed to reduce or eliminate trade barriers between themselves.
What is one positive economic consequence of a trading bloc?
What is one positive economic consequence of a trading bloc?
Reduced trade barriers, such as tariffs and quotas, leading to increased trade between member countries.
What is another positive economic consequence of a trading bloc?
What is another positive economic consequence of a trading bloc?
Increased competition from member countries, potentially leading to lower prices for consumers.
What is one negative political consequence of a trading bloc?
What is one negative political consequence of a trading bloc?
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What is another negative political consequence of a trading bloc?
What is another negative political consequence of a trading bloc?
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Study Notes
Globalization
- Globalization is the process of increasing interconnectedness between countries. This involves exchanging services and goods worldwide.
- First world: Western countries
- Second world: Communist nations (formerly)
- Third world: Countries and regions that were not in the First or Second worlds, emerging after the Cold War.
Human Development Index (HDI)
- HDI is a measure of a country's development based on factors like:
- Life expectancy at birth.
- Expected years of schooling.
- GNI per capita (Gross National Income per capita)
Impacts of Globalization
- Social Impacts: Poverty and a standard of living.
- Environmental Impacts: Pollution, deforestation, and global warming
Multinational Corporations (TNCs)
- A large percentage of global trade is controlled by a small number of companies.
- 70% of world trade is controlled by ~50% companies
- Top 200 corporations account for 25% of the world's economy
- 90% of TNC headquarters are in industrialized countries
World Trade Organization (WTO)
- Mercantilism vs. Protectionism: Mercantilism is prioritizing a country's economic interests, while protectionism involves using barriers to limit the import of foreign good.
- Consequences: Trade wars could ensue as a result of these approaches.
Nestlé
- Nestlé established itself as a global food industry giant.
- Has come under criticism for its business practices concerning:
- Baby formula & developing countries
- Child labor for cacao (cacao production)
- Water bottling practices (and environmental concerns associated)
Global Governance
- Organizations of countries uniting to address issues like Global Warming, poverty, etc.
- Includes international bodies like the UN, World Bank, IMF, and WTO.
Global Poverty
- Poverty is a global issue with causes like climate issues (extreme weather trends), and pandemics
- A significant portion of the poor live in economies affected conflicts and instability.
- The MPI (Multidimensional Poverty Index) considers aspects of poverty, including well-being, health, education, etc.
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