All flashcards
Flashcard 1: What is the role of transnational corporations in globalization?
Answer: Facilitating global trade and investment. These companies drive economic integration across borders.
Flashcard 2: Identify one argument against globalization.
Answer: It can lead to cultural homogenization. Critics worry about losing local cultures and traditions.
Flashcard 3: 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 4: Name one example of a trade bloc.
Answer: European Union (EU). This bloc represents one of the most integrated trade regions.
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 a key feature of a command economy?
Answer: Centralized government control of resources and production. The state directs economic activity through central planning.
Flashcard 7: 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 8: 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 9: 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 10: Identify one benefit of fair trade practices.
Answer: Improved working conditions for producers. Workers receive better wages and safer working environments.
Flashcard 11: What is economic inequality?
Answer: The unequal distribution of wealth and income. Globalization can worsen disparities between rich and poor.
Flashcard 12: Identify one potential drawback of rapid economic growth.
Answer: Environmental degradation. Rapid industrialization often harms natural resources and ecosystems.
Flashcard 13: 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 14: 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 15: Identify one key component of sustainable development.
Answer: Environmental protection. Combines economic development with ecological conservation efforts.
Flashcard 16: 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 17: 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 18: 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 19: Identify one major effect of globalization on trade.
Answer: Increased international trade and interdependence. Nations become more connected through expanded cross-border commerce.
Flashcard 20: 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 21: 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 22: What is a multinational corporation (MNC)?
Answer: A company that operates in multiple countries. These corporations expand operations beyond their home country borders.
Flashcard 23: 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 24: What is outsourcing in economic terms?
Answer: Contracting out business processes to external parties. Companies delegate tasks to external providers to reduce costs.
Flashcard 25: 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 26: 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 27: 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 28: 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 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: What is a tariff?
Answer: A tax imposed on imported goods. This trade barrier raises revenue while protecting domestic producers.