B5-M6&7 Flashcards
1
Q
Globalization
A
Increased dispersion and integration of world economies
- measured as growth in world trade as a percentage of GDP
- associated with comparative advantage and specialization
2
Q
International Monetary Fund
A
- stabilize exchange rates
- does not regulate currency values
3
Q
Global economic balance of power
A
-distribution of influence that ensures not one nation will dominate or interfere with the activities of others
4
Q
Sourcing requirements
A
- content/ value added limits on the percentage of labor or materials used in importing products
- compliance= tariff reductions
5
Q
Unipolar distribution of power
A
Power concentrated in a single nation
6
Q
Emerging nations associated with shift in the economic balance of power (BRIC)
A
Brazil
Russia
India
China
7
Q
Functional interdependence
A
Failure of developed nations to engage developing nations within worldwide institutions
8
Q
Dumping
A
Price charged to foreign customers on exported good is less than the price charged in the domestic market or less than the production cost
