Globalization Flashcards

Questions and Answers

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

countries.

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

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

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

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

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

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

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

Gross Domestic Product

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

outsourcing. Signup and view all the answers

How does globalization cause the foreign sector to influence the economy?

The foreign sector influences how imports and exports move between firms and households. Signup and view all the answers

Global trade provides consumers with?

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

Technologies that allow for instant worldwide communication include?

mobile phones and Internet access. Signup and view all the answers

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

By opening up new trade markets. Signup and view all the answers

What are the most likely reasons a US corporation would open a factory in China? (Select all that apply)

To take advantage of affordable land prices. Signup and view all the answers

Which best describes the effect of globalization on China's economy?

China is shifting toward specialization in industry and services and away from agriculture. Signup and view all the answers

Recent improvements in __________ have increased the pace of globalization.

technology 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

Which statement best describes how globalization connects the world?

Globalization helps create new forms of transportation, communication, and technology. 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 China?

The US and China are strong because they have a high gross domestic product. Signup and view all the answers

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

purchasing power parity. Signup and view all the answers

How has Internet access changed and affected globalization from 2003 to 2013?

A thirty percent increase in Internet access has sped up globalization. Signup and view all the answers

Study Notes

Purchasing Power Parity

Used to compare the gross domestic product (GDP) between countries.
Illustrates how currency values impact economic comparisons.

Global Interdependence

Countries depend on each other for vital resources, new industries, and trade opportunities.
Reliance on international imports and exports creates economic links.
Cheaper products available through global trade enhance consumer options.

Economic Growth Measurement

GDP stands for Gross Domestic Product.
GDP measures economic growth by accounting for all goods and services produced within an economy.

Outsourcing

Outsourcing refers to hiring workers in another country, impacting job distribution and economic dynamics.

Foreign Sector Influence

The foreign sector significantly affects the movement of imports and exports between firms and households.
Globalization facilitates international economic interactions.

Global Trade Benefits

Contributes to more consumer options and lower prices in the marketplace.
Increased competition from global trade leads to better pricing strategies.

Communication Technologies

Mobile phones and Internet access are key technologies enabling instant worldwide communication.
These advancements help bolster globalization.

Impact of Air Travel

Airlines have made long-distance travel more affordable and faster.
Created new trade markets and expanded consumer travel options across borders.

US Corporations and China

US corporations often establish factories in China to exploit affordable land prices, abundant resources, lower labor costs, and favorable tax laws.
These incentives lead to increased foreign direct investment.

Globalization's Effect on China's Economy

From 2000 to 2010, China experienced a shift toward specialization in industry and services, reducing its reliance on agriculture.

Technology and Globalization

Recent technological advancements have accelerated the pace of globalization, facilitating trade and communication.

Conclusion on Globalization

Globalization connects the world by fostering new forms of transportation, communication, and technology.
It expands the global economy through interconnected markets.

Comparative Economic Strength

The US and China maintain strong economies, evidenced by their high gross domestic product figures.

Purchasing Power Parity Illustration

The cost of identical products, such as bikes, across different countries exemplifies purchasing power parity.

Internet Access and Globalization

Between 2003 and 2013, a 30% increase in Internet access contributed to the acceleration of globalization effects.

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Description

Test your knowledge on globalization concepts and terms with these flashcards. Learn about purchasing power parity and the interdependence of countries in today's global economy. Perfect for students and anyone interested in economics.