AP World History Modern Flashcards: Economics In The Global Age

What this deck covers

This deck focuses on Economics In The Global Age, giving you a quick way to review the definitions, rules, and examples that matter most for AP World History Modern.

How to use these flashcards

Work through these flashcards in short sessions. Try to answer each prompt before flipping the card, then revisit any cards you miss until the explanation feels automatic.

Flashcard 1: What is the purpose of economic sanctions?

Answer: To influence a country's behavior by restricting trade or financial flows. Economic pressure serves as a diplomatic tool for policy change.

Flashcard 2: What is a trade bloc?

Answer: A group of countries that have agreed to reduce trade barriers among themselves. Members enjoy preferential trading relationships within the group.

Flashcard 3: What is outsourcing in economic terms?

Answer: Contracting out business processes to external parties. Companies delegate tasks to external providers to reduce costs.

Flashcard 4: Identify one potential drawback of rapid economic growth.

Answer: Environmental degradation. Rapid industrialization often harms natural resources and ecosystems.

Flashcard 5: Identify one advantage of being in a trade bloc.

Answer: Increased market access for member countries. Members face fewer trade barriers within their regional group.

Flashcard 6: What is the purpose of economic sanctions?

Answer: To influence a country's behavior by restricting trade or financial flows. Economic pressure serves as a diplomatic tool for policy change.

Flashcard 7: Identify one consequence of increased capital mobility.

Answer: Greater investment opportunities and risks. Capital flows can boost economies but create financial instability.

Flashcard 8: What is the primary goal of protectionism?

Answer: To protect domestic industries from foreign competition. Uses barriers like tariffs to shield local producers.

Flashcard 9: What is a subsidy?

Answer: A government payment to support a business or market. Governments use these to support specific industries or activities.

Flashcard 10: Identify one advantage of being in a trade bloc.

Answer: Increased market access for member countries. Members face fewer trade barriers within their regional group.

Flashcard 11: What is a trade deficit?

Answer: When a country's imports exceed its exports. This creates an imbalance in a nation's trade account.

Flashcard 12: What does the term 'capital mobility' refer to?

Answer: The ease with which capital or investments can move across borders. Money flows freely between countries for investment purposes.

Flashcard 13: What is the role of transnational corporations in globalization?

Answer: Facilitating global trade and investment. These companies drive economic integration across borders.

Flashcard 14: What is globalization in the context of economics?

Answer: Globalization is the integration of global markets and economies. This process connects economies worldwide through trade and investment.

Flashcard 15: Identify one major effect of globalization on trade.

Answer: Increased international trade and interdependence. Nations become more connected through expanded cross-border commerce.

Flashcard 16: What is the primary focus of sustainable development?

Answer: Meeting current needs without compromising future generations. Balances economic growth with environmental and social responsibility.

Flashcard 17: What is the 'digital divide' in global economics?

Answer: The gap between those with and without access to digital technology. Technology access creates economic advantages for some regions.

Flashcard 18: What is the 'digital divide' in global economics?

Answer: The gap between those with and without access to digital technology. Technology access creates economic advantages for some regions.

Flashcard 19: What is economic liberalization?

Answer: The reduction of state involvement in the economy. Shifts from government control toward market-based mechanisms.

Flashcard 20: Identify one benefit of fair trade practices.

Answer: Improved working conditions for producers. Workers receive better wages and safer working environments.

Flashcard 21: Identify one role of non-governmental organizations (NGOs) in global economics.

Answer: Advocating for sustainable and ethical business practices. These organizations promote corporate responsibility and social justice.

Flashcard 22: Identify one argument against globalization.

Answer: It can lead to cultural homogenization. Critics worry about losing local cultures and traditions.

Flashcard 23: Identify one key component of sustainable development.

Answer: Environmental protection. Combines economic development with ecological conservation efforts.

Flashcard 24: Identify one argument against globalization.

Answer: It can lead to cultural homogenization. Critics worry about losing local cultures and traditions.

Flashcard 25: What is the main function of the World Trade Organization (WTO)?

Answer: To regulate international trade and resolve disputes. Acts as the global referee for international trade agreements.

Flashcard 26: Name one example of a trade bloc.

Answer: European Union (EU). This bloc represents one of the most integrated trade regions.

Flashcard 27: What is outsourcing in economic terms?

Answer: Contracting out business processes to external parties. Companies delegate tasks to external providers to reduce costs.

Flashcard 28: Name one major challenge of global economic integration.

Answer: Balancing national interests with global cooperation. Nations must balance sovereignty with international economic commitments.

Flashcard 29: What is the primary goal of protectionism?

Answer: To protect domestic industries from foreign competition. Uses barriers like tariffs to shield local producers.

Flashcard 30: Identify one key component of sustainable development.

Answer: Environmental protection. Combines economic development with ecological conservation efforts.

Flashcard 31: Which institution provides long-term loans for development projects?

Answer: The World Bank. Focuses on poverty reduction and infrastructure development worldwide.

Flashcard 32: Identify one benefit of free trade.

Answer: Access to a wider variety of goods and services. Consumers benefit from increased choice and competitive prices.

Flashcard 33: What is 'foreign direct investment' (FDI)?

Answer: Investment made by a firm or individual in one country in business interests in another country. This creates lasting economic ties between countries.

Flashcard 34: Identify one benefit of free trade.

Answer: Access to a wider variety of goods and services. Consumers benefit from increased choice and competitive prices.

Flashcard 35: What is the impact of tariffs on imported goods?

Answer: They increase the price of imported goods. These taxes make foreign products more expensive for consumers.

Flashcard 36: What is the role of transnational corporations in globalization?

Answer: Facilitating global trade and investment. These companies drive economic integration across borders.

Flashcard 37: Identify one key feature of a market economy.

Answer: Decentralized decision-making by individuals and firms. Private actors make economic choices based on supply and demand.

Flashcard 38: What is economic inequality?

Answer: The unequal distribution of wealth and income. Globalization can worsen disparities between rich and poor.

Flashcard 39: Name one example of a trade bloc.

Answer: European Union (EU). This bloc represents one of the most integrated trade regions.

Flashcard 40: What is a tariff?

Answer: A tax imposed on imported goods. This trade barrier raises revenue while protecting domestic producers.

Flashcard 41: Identify one negative impact of economic globalization.

Answer: Job losses in domestic industries due to outsourcing. Workers face unemployment when production moves to cheaper locations.

Flashcard 42: Name one major challenge of global economic integration.

Answer: Balancing national interests with global cooperation. Nations must balance sovereignty with international economic commitments.

Flashcard 43: What is a key feature of a command economy?

Answer: Centralized government control of resources and production. The state directs economic activity through central planning.

Flashcard 44: What is a tariff?

Answer: A tax imposed on imported goods. This trade barrier raises revenue while protecting domestic producers.

Flashcard 45: Identify one key feature of a market economy.

Answer: Decentralized decision-making by individuals and firms. Private actors make economic choices based on supply and demand.

Flashcard 46: What does the term 'economic interdependence' mean?

Answer: Countries are mutually reliant on each other economically. Global integration creates mutual dependence between national economies.

Flashcard 47: What is a key feature of a command economy?

Answer: Centralized government control of resources and production. The state directs economic activity through central planning.

Flashcard 48: Name the agreement that created a free trade zone between the US, Canada, and Mexico.

Answer: North American Free Trade Agreement (NAFTA). Eliminated most tariffs between these three North American nations.

Flashcard 49: Which organization was established to promote global trade in 1995?

Answer: World Trade Organization (WTO). Replaced GATT to oversee global trade rules and dispute resolution.

Flashcard 50: What is a multinational corporation (MNC)?

Answer: A company that operates in multiple countries. These corporations expand operations beyond their home country borders.

Flashcard 51: What does the term 'economic interdependence' mean?

Answer: Countries are mutually reliant on each other economically. Global integration creates mutual dependence between national economies.

Flashcard 52: What is the main function of the World Trade Organization (WTO)?

Answer: To regulate international trade and resolve disputes. Acts as the global referee for international trade agreements.

Flashcard 53: What is the term for the relocation of business processes to lower-cost locations abroad?

Answer: Offshoring. Companies move operations abroad to reduce labor and production costs.

Flashcard 54: Name the agreement that created a free trade zone between the US, Canada, and Mexico.

Answer: North American Free Trade Agreement (NAFTA). Eliminated most tariffs between these three North American nations.

Flashcard 55: Which institution provides long-term loans for development projects?

Answer: The World Bank. Focuses on poverty reduction and infrastructure development worldwide.

Flashcard 56: What is a multinational corporation (MNC)?

Answer: A company that operates in multiple countries. These corporations expand operations beyond their home country borders.

Flashcard 57: What does the term 'capital mobility' refer to?

Answer: The ease with which capital or investments can move across borders. Money flows freely between countries for investment purposes.

Flashcard 58: Identify one role of non-governmental organizations (NGOs) in global economics.

Answer: Advocating for sustainable and ethical business practices. These organizations promote corporate responsibility and social justice.

Flashcard 59: Identify one major effect of globalization on trade.

Answer: Increased international trade and interdependence. Nations become more connected through expanded cross-border commerce.

Flashcard 60: What is the term for the relocation of business processes to lower-cost locations abroad?

Answer: Offshoring. Companies move operations abroad to reduce labor and production costs.

Flashcard 61: What is the purpose of the International Monetary Fund (IMF)?

Answer: To stabilize international exchange rates and financial systems. Provides financial assistance and promotes monetary cooperation globally.

Flashcard 62: Identify one consequence of increased capital mobility.

Answer: Greater investment opportunities and risks. Capital flows can boost economies but create financial instability.

Flashcard 63: What is a subsidy?

Answer: A government payment to support a business or market. Governments use these to support specific industries or activities.

Flashcard 64: What is fair trade?

Answer: A movement aimed at ensuring fair prices and wages for producers. Ensures ethical treatment and compensation for developing world producers.

Flashcard 65: What is a trade bloc?

Answer: A group of countries that have agreed to reduce trade barriers among themselves. Members enjoy preferential trading relationships within the group.

Flashcard 66: What is globalization in the context of economics?

Answer: Globalization is the integration of global markets and economies. This process connects economies worldwide through trade and investment.