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Contemporary (Chap 1-3) > Chapter 2: The Global Economy > Flashcards

Chapter 2: The Global Economy Flashcards

1
Q

_____ is the word used to describe the growing interdependence of the world’s economies, cultures, and populations.

A

Globalization

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2
Q

Global Economy’s Characteristics/ Aspects of Global Economy

A
  • Globalization
  • International trade
  • International finance
  • Global investment
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3
Q

____ describes a process by which national and regional economies, societies, and cultures have become integrated.

A

Globalization

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4
Q

it refers to the exchange of goods and services between different countries

it’s an economic theory that refers to an economy’s ability to produce goods and services

A

international trade

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5
Q

it consists of topics like currency exchange rates and monetary policy

A

international finance

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6
Q

its refers to an investment strategy that is not constrained by geographical boundaries

A

global investment

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7
Q

we can understand the importance of global economy by looking at it in relation to ___.

___ one of the primary engines of world economic growth.

same answer

A

emerging markets

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8
Q

it refers to the study of the behavior of households, individuals, and firms with respect to the allocation of resources and decision-making.

A

concept of microeconomics

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9
Q

a branch of economics that studies how people make decisions, what factors affect their decision, and how this decision affect the price, demand, and supply of goods in the market.

A

microeconomics

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10
Q

these individuals hail from emerging markets

A
  • some of the largest firms, and
  • few of the richest individuals
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11
Q

GDP in emerging market economies in 2019 are likely to keep ____ at a _____ rate.

A

increasing at a positive rate

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12
Q

we can understand the importance of the global economy by looking at it in relation to emerging markets:

A

Economic importance at a micro and macro level

Long-term world economic outlook

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13
Q

Who controls the global economy?

A

Big banks and large corporations

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14
Q

Global economy is dominated by _____

A

large financial institutions

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15
Q

US banks participated in many traditional government business like?

A

power production
oil refining and distribution

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16
Q

is an american multinational investment bank and financial services company, founded in 1869

A

The Goldman Sachs Group Inc.

17
Q

is the second largest investment bank in the world by revenue and its ranked 55th on the Fortune 500 list

A

The Goldman Sachs Group Inc.

18
Q

________ is an American multinational financial services firm headquartered in New York and Incorporated in Delaware. It is the largest bank in the United States and the world’s largest bank by market capitalization.

A

JP Morgan Chase & Co.

19
Q

In 1933 as a result of the ________, what was known as the House of Morgan was Broken into 3 separate firms - J.P. Morgan & Cp., which later became ________; ________; and ________ in London

A
  • Glass-Steagall Act
  • Morgan Guaranty Trust
  • Morgan Stanley
  • Morgan Grenfell
20
Q

________ traces its roots to J.P Morgan & Co. following the Glass-Steagall Act. It was no longer possible for a corporation to have investment banking and commercial banking businesses under a single holding entity.

A

Morgan Stanley

21
Q

The functioning of the global economy can be explained through one word. These mainly comprise trade taking place between different countries.

A

Transaction

22
Q

________ taking place between top economies in the world help in the continuance of the global economy.

A

International Transaction

23
Q

________ includes the exchange of a variety of products between countries. It ranges all the way from fruits and foods, to natural oil and weapons.

A

International Trade

24
Q

Transactions have a number of benefits including:

  1. Providing a foundation for ________________, with the international economy set to grow by ____ in 2019.
  2. Encouraging ____________between countries in various markets.
  3. Raising ________ and ________ across countries.
  4. Helping in the development of underdeveloped countries by allowing then to ____________ (machinery and industrial raaw materials), and ________ (natural resources and raw materials).
A
  1. worldwide economic growth, 4%
  2. competitiveness
  3. productivity, efficiency
  4. import capital goods, export primary goods
25
Q

____ was referendum decision for the United Kingdom to widraw from the European Union (EU).

A

Brexit

26
Q

The main cause of the effects of Global Economy is economics - based on the ________________. Restrictions on the ________________ can potentially hamper economic stability of countries who choose to impose too many.

A
  • Production and Exchange of Goods and Services
  • Import and Export of Goods and Services
27
Q

International trade differs from domestic trade in two aspects:

  1. The ____ of the two countries are involved in international trade, so they must be exchanged before goods and services can be exported or imported
  2. Occasionally, countries enforce ________ on the international trade of certain goods or services which can disrupt the relation betweem two countries
A
  1. Currencies
  2. Barriers
28
Q

________ refers to the proportionate saving in costs gained by and increase level of production.

A

Economies of Scale

29
Q

Occasionally countries add barriers to international trade. Some of these barriers include ________ (taxes and imports) and ________ (limitation on the number of products that can be imported into a country).

A
  • trade tariffs
  • trade quotas
30
Q

What are the benefits of global economy (4)

A
  1. Free trade
  2. Movement of Labor
  3. Increased economies of scale
  4. Increased investment
31
Q

____ is an excellent method for countries to exchange goods and services. It also allows countries to specialize in the production of those goods in which they have a comparative advantage.

A

Free Trade

32
Q

Increased migration of the labor force is advantageous for the recipient country as well as for the workers. This also helps in reducing geographical inequality.

A

Movement of labor

33
Q

________________: the specialization of goods production in the most countries has led to advantageous economic factors such as ________ and ________ for customers

A
  • Increased Economies of Scale
  • lower average costs
  • lower prices
34
Q

________: Due to presence of global economy, it has become easier for countries to attract short-term and long-term investment.

A

Increased Investment

35
Q

Key factors that influence and affect how well the global economy works

A
  1. Natural Resources
  2. Infrastructure
  3. Population
  4. Labor
  5. Human Capital
  6. Technology
  7. Technology
  8. Law
36
Q

the ____ refers to the interconnected worldwide economic activities that take place between multiple countries.

A

global economy

Contemporary (Chap 1-3) (13 decks)

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