3. Economic Globalization

Question 1

__ refers to the international mobility of individuals, capital, technology, goods, and services. It’s also about how different countries and regions have become __ across the globe

Answer 1

• economic globalization
• interdependent

Question 2

__ refers to the increasing ____ around the world particularly through the movement of goods, services, and capital across borders.

Answer 2

• economic globalization
• integration of economies

Question 3

The accumulation, importation, and exportation of goods and commodities from one country to other countries and vice-versa is best explained by the economic globalization.

Answer 3

global economy

Question 4

CHARACTERISTICS OF GLOBAL ECONOMY

Answer 4

• International trade
• International finance
• Global investment

Question 5

How does the global economy work?

Answer 5

International transactions

Question 6

What are the benefits of the global economy?

Answer 6

• free trade
• increased investment
• increased economies of scale
• movement of labor

Question 7

an excellent method for countries to exchange goods and services

Answer 7

free trade

Question 8

due to the presence of the global economy, it has become easier for countries to attract short-term and long-term investment

Answer 8

increased investments

Question 9

the specialization of goods production in most countries has led to advantageous economic factors such as lower average costs and lower prices for customers

Answer 9

increased economies of scale

Question 10

increased migration of the labor force is advantageous for the recipient country as well as for the workers

Answer 10

movement of labor

Question 11

Factors Affecting Global Economy

Answer 11

population:
- human capital
- natural resources

infrastructure:
- technology
- law

Question 12

a term that is used to identify a phenomenon in which markets of goods and services that are somehow related to one another being to experience similar patterns of increase or decrease in terms of the prices of those products.

Answer 12

market integration

Question 13

Effect of Integration on Market Development

Answer 13

• Market integration provides opportunity to expand market coverage by selling local products in the global market.

Question 14

When the __ sneezes, the rest of the __ catches a cold.

Answer 14

• American economy
• world

Question 15

International non-profit agencies are one of the major sources of financing like regional development banks or banks globally.

Answer 15

International Financial Institutions

Question 16

To finance productive development projects or to promote economic development.

Answer 16

International Financial Institutions

Question 17

It provides much of the planning and financing for economic development projects involving billions of dollars

Answer 17

World Bank

Question 18

lends money to members having trouble meeting financial obligations to other members, but only on the condition that they undertake economic reforms.

Answer 18

International Monetary Fund (IMF)

Question 19

intended to boost economic recovery after World War II through reconstructing and liberalizing global trade.

Answer 19

General Agreement on Tariffs and Trade (GATT)

Question 20

a global membership group that promotes and manages free trade.

Answer 20

World Trade Organization

Question 21

generally referred to as a multinational corporation (MNC), transnational corporation (TNC), or international company.

Answer 21

global corporation

Question 22

An enterprise that engages in activities that add value (manufacturing, extraction, services, marketing, etc) in more than one country

(United Nations Centre On Transnational Corporations, 1991)

Answer 22

global corporation

Question 23

comprise businesses operating or having business interests in more than one country, mostly headquartered in the parent country.

Answer 23

multinational corporations

Question 24

Multinational companies (MNCs) can bring various benefits to both their __ (where they are headquartered) and __ (where they operate subsidiaries or branches).

Answer 24

• home country
• host countries

Question 25

“any enterprise that undertakes foreign direct investment, owns or controls income-gathering assets in more than one country, produces goods or services outside its country of origin, or engages in international production”

Answer 25

transnational corporation (TNC)

Question 26

refers to a corporation that has assets and facilities in one or more countries, other than the home country, and has a centralized office where global management is coordinated

Answer 26

multinational corporations

Question 27

refers to a corporation that operates in other countries, other than the home country, and does not have a centralized management system

Answer 27

transnational corporations

Question 28

have subsidiaries in other countries

Answer 28

multinational corporations

Question 29

does not have subsidiaries in other countries

Answer 29

transnational corporations

Question 30

decision-making is made in the mother country and should be effected in all the subsidiaries globally

Answer 30

multinational corporations

Question 31

decision-making is made by individual ** corporations.

Answer 31

transnational corporations

Question 32

faces restrictions when it comes to local markets since they have centralized management systems

Answer 32

multinational corporations

Question 33

are free to make decisions independently based on local markets

Answer 33

transnational corporations

Question 34

examples of TNCs

Answer 34

• Google
• Royal Dutch Shell

Question 35

examples of MNCs

Answer 35

• Toyota Motor Corporation
• Unilever