Globalization: Trade, Organizations, History

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Questions and Answers

Which historical trade route, introduced by China, facilitated the global transport of goods across the Eurasian landmass?

The Silk Road (correct)
The Gold Road
The Tea Trail
The Spice Route

What was the main goal of the Bretton Woods system established in 1944?

To promote isolationist economic policies among nations
To prevent another Great Depression through international economic cooperation (correct)
To create a global gold standard for all currencies
To establish fixed exchange rates based on the British pound

How does economic globalization influence the organization of production and control within the global economy?

It eliminates the need for centralized command, distributing control evenly.
It involves the decentralization of production while centralizing command and control within global cities. (correct)
It centralizes both production and command within individual nation-states.
It promotes the decentralization of both production and command across all countries.

Which of the following best describes how 'global value chains' operate in international trade according to the text?

They track the creation of value through different stages, from the production of a product to its disposal. (A) Signup and view all the answers

What is the primary reason for rapidly increasing commodity demand in the global market?

Increased consumption in developing countries like China (A) Signup and view all the answers

What characterizes the economic strategy of 'industrial upgrading' as adopted by countries like China and Mexico?

Transitioning from low-cost production to higher-value production with higher wages (D) Signup and view all the answers

Which characteristic distinguishes Intergovernmental Organizations (IGOs) from other types of international entities?

They are primarily composed of sovereign states or other IGOs. (A) Signup and view all the answers

What is the defining feature of Supranational Organizations that sets them apart from other forms of international bodies?

They extend beyond the borders of multiple states to foster economic, political, or cultural unity. (B) Signup and view all the answers

What critical attribute defines Non-Governmental Organizations (NGOs) in their operations?

Independent operation from governments, allowing for unbiased advocacy and service provision (C) Signup and view all the answers

Which activity is commonly undertaken by Multinational Corporations (MNCs) and Transnational Corporations (TNCs) in the global market?

Making significant investments in foreign countries to expand their global reach (D) Signup and view all the answers

What condition defines 'market integration' in the context of global economics?

When related markets demonstrate similar price trends, indicating interconnectedness (C) Signup and view all the answers

How does market integration affect the dynamics of global product distribution?

It reduces market failures through greater market coverage by selling local products in the global market. (C) Signup and view all the answers

What is an effect of market integration?

It equalizes prices across integrated markets. (B) Signup and view all the answers

How does the International Monetary Fund (IMF) contribute to global financial stability?

By ensuring monetary stability and managing exchange rates between countries (B) Signup and view all the answers

What is the primary function of Trade-Related Aspects of Intellectual Property Rights (TRIPS) under the World Trade Organization (WTO)?

To protect intellectual property rights, such as patents and copyrights, internationally (D) Signup and view all the answers

What is the purpose of Trade-Related Investment Measures (TRIMS)?

To ensure that foreign investments do not distort trade practices (D) Signup and view all the answers

How does 'deregulation' contribute to global economic integration?

By removing government restrictions on economic activity (D) Signup and view all the answers

What role does Foreign Direct Investment (FDI) play in global economics?

It represents the investment by a foreign company in another country's economy. (A) Signup and view all the answers

How does trade liberalization primarily impact international economic relations?

It reduces or eliminates trade barriers like tariffs and quotas. (C) Signup and view all the answers

What is the key focus of regional integration among countries?

Cooperating for economic, political, and social benefits (B) Signup and view all the answers

What is a primary attribute of global corporations in the current economic landscape?

Operating on a global scale with presence in multiple countries. (A) Signup and view all the answers

How does the organizational structure of global corporations typically operate?

Centralized management with headquarters in a single country (B) Signup and view all the answers

What impact can technological advancement by global corporations have on international markets?

Raises economic influence over global markets through improved products and services (D) Signup and view all the answers

One potential advantage of Foreign Capital Investment is:

Job Creation (C) Signup and view all the answers

In what way does globalization impact the power and control of nation-states?

It challenges the nation-state, leading to a loss of control over economic flows and transnational organizations. (D) Signup and view all the answers

What does the concept of 'Porosity of the Nation-State' refer to in the context of globalization?

The increasing openness of borders to trade, migration, and information (D) Signup and view all the answers

According to Benedict Anderson, what constructs the idea of a 'nation'?

Social and political constructs created through print capitalism and shared culture (B) Signup and view all the answers

What key principle was established by the Treaty of Westphalia (1648) in shaping the interstate system?

The principle of sovereignty, ensuring countries do not interfere in each other's affairs (D) Signup and view all the answers

What is the primary focus of nationalism as a principle within the interstate system?

Promoting national unity and interests above all others (B) Signup and view all the answers

How does globalization affect governments' interactions with international organizations?

Governments work more with international organizations. (A) Signup and view all the answers

How are International Organizations (IGOs) formed in the context of global governance?

They are created by nation-states to handle issues beyond their borders. (A) Signup and view all the answers

What characterizes the operating principles of most International Organizations (IGOs)?

Intergovernmental principles, requiring unanimous consent for agreements (C) Signup and view all the answers

What is a consequence of the weakening of the nation-state due to globalization?

Increased privatization of responsibilities (e.g., water, health care, education) (A) Signup and view all the answers

What is the definition of governance?

The establishment of policies and monitoring their implementation (C) Signup and view all the answers

According to Karns and Mingst, what does global governance encompass?

A collection of governance-related activities, rules, and mechanisms, formal and informal (B) Signup and view all the answers

What major global issue does the Role and Function of the United Nations (UN) address?

Promotes intentional peace and order. (A) Signup and view all the answers

What is the ultimate goal of the United Nations(UN)?

To maintain peace and security. (A) Signup and view all the answers

What challenge did Weis (2015) identify in the context of global governance?

Countries compliance with and enforcement of agreements (A) Signup and view all the answers

Which action is most crucial for the future effectiveness of global governance?

Evolving to address modern issues like terrorism, climate change, and pandemics (C) Signup and view all the answers

How did the Bretton Woods system aim to foster international economic cooperation following World War II?

By facilitating free capital flow worldwide and adopting the U.S. dollar as the standard 'global currency'. (A) Signup and view all the answers

What is the core characteristic that distinguishes Supranational Organizations from Intergovernmental Organizations?

Supranational Organizations possess the authority to enforce decisions on member states, whereas Intergovernmental Organizations rely on unanimous consent. (A) Signup and view all the answers

In what way does the decentralization of production, characteristic of the global economy, impact the centralization of command and control?

It causes a concentration of command and control within specific global cities. (B) Signup and view all the answers

What is a primary challenge posed by the 'compliance gap' in the context of global governance, as identified by Weis (2015)?

The inability of some institutions to enforce established rules undermines the effectiveness of agreements. (D) Signup and view all the answers

How has the concept of the nation-state been affected by globalization, particularly concerning control over economic factors?

Globalization has led to a reduced control of nation-states over economic flows and transnational organizations. (B) Signup and view all the answers

Flashcards

What is an Economy?

The basic foundation of society, influencing its condition and politics.

What is Worldwide Economic Status?

A country's position in the world economy, showing its ability to compete.