Concepts Flashcards
How are world resources distributed?
Countries use trading and trade agreements to exchange resources that a necessary for each country
ex. countries rich in oil sell their oil to other countries which need it to run
How and why has globalization spread over the years?
- technological advancements
- advancements in tech has allowed countries and different people and information to be spread around the world easier
- transportation and communication - economic integration
- trade agreements between countries allows resources to be spread around the world
- outsourcing - Cultural exchange
- immigration and migration
- media and entertainment - global challenges
- forces countries to cooperate and work together
What are the influences of TNC’s?
Trans-national corporations:
creates job opportunities
significantly boosts the GPD of their home country
low labour conditions
exploit regulations of other countries to have a lower production cost
- ex. shipbreaking in Bangladesh
Pros of international trade:
access to a larger market
increased competition which creates lower prices for consumers
global cooperation
transfer of knowledge
gain access to different resources
Cons of International Trade
unequal benefits, developed countries usually benefit more
makes countries very dependent on others resources
labour exploitation
high environmental impact
can harm local industries
How are governments trying to be sustainable?
- enforce polices and regulations to protect the environment
e. carbon tax, NDC’s - global agreements to help underdeveloped and developed countries be sustainable
ex. the Paris Agreement - people aim to reduce their own ecological footprint by being more green
- economic institutions to help struggling countries be more sustainable
Pros of foreign investment
access to the global market
capital for development
economy diversification
boosting tax revenue
cons of foreign investment
exploitation of resources
economic dependence
political and economic risk
environmental concern
what is an economy?
the system by which goods and services are produced, distributed, and consumed
pros of privatization
better quality
reduced government burden on businesses
more competition which lowers prices for consumers
entrepreneurship
cons of privatization
risk of monopolies
companies often choose profit over public interest
exploitation
What was Keynes view on the economy?
He disliked capitalism and believed that the government needs to help the economy by setting up programs to help the unemployed
What were Hayek’s views on the economy?
He disagreed with Keynes views and believed that the government should not be involved in the economy and that competition should be fostered between businesses in order to have a healthy economy
he thought that dips in the economy were natural
What were Friedman’s views on the economy?
He believed that the economy should not rely on the government and that if the government was involved it would make people weak
believed in survival of the fittest
is economic globalization a good or bad thing?
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