Foundations

Question 1

Infrastructure

Answer 1

Is a basic physical and organizational structures needed for the operation of a society or enterprise or the services and facilities necessary for an economy to function

Question 2

Tariffs

Answer 2

A tax imposed on imports to increase their price and thus reduce competition with domestic products

Question 3

Protectionism

Answer 3

The economic policy of restraining trade between states (countries) through methods such as tariffs on imported goods, restrictive quotas, and a variety of other government regulations designed to allow (according to proponents) fair competition between imports and goods and services produced domestically

Question 4

Social Costs

Answer 4

Social cost is the total cost to society. It includes both private costs plus any external costs

Question 5

New Deal

Answer 5

The set of federal programs launched by President Franklin D. Roosevelt after taking office in 1933, in response to the calamity of the Great Depression. Included economic recovery, job creation, investment in public works, and civic uplift.

Question 6

Capitalist economy

Answer 6

A system of economics based on the private ownership of capital and production inputs, and on the production of goods and services for profit.

Question 7

Exchange rate

Answer 7

The price at which one national currency can be purchased for another

Question 8

Breton Woods agreement

Answer 8

Established a system of rules, institutions, and procedures for the postwar global economy. It created the World Bank, the International Monetary Fund, and a system of international trade for the worlds major industrial countries.

Question 9

International Monetary System

Answer 9

Global network of institutions to promote international trade and the regulation of currency among Western countries

Question 10

Fixed exchange rate

Answer 10

Value of a countries currency that is set by the government

Question 11

Gold Standard

Answer 11

All printed money would be convertible to gold and could be cashed in at any time for that gold

Question 12

Inflation

Answer 12

Country ends up with more currency by each unit of currency buys less

Question 13

Floating exchange rate

Answer 13

Currency value decided by supply and demand based on value in foreign exchange markets

Question 14

World Bank

Answer 14

International bank got reconstitution and development. An agency for the UN. Provides loans to less developed countries that it in financial difficulty. In charge of long term financial assistance.

Question 15

IMF

Answer 15

The International Monetary Fund - work together with the world bank to bring stability to international monetary affairs and to help expand world trade. Monitors exchange rates and provides short term financial assistance.

Question 16

Quotas

Answer 16

Proportional shares which member countries pay to the IMF to fund it

Question 17

International Money Markets

Answer 17

Markets in which funds that are loaned for a short term to businesses or governments are bought and sold.

Question 18

Mutual Fund

Answer 18

Combines clients money and invests it in a collection is sticks, bonds, and securities

Question 19

Recession

Answer 19

Period of reduced economy activity lasting more then 6 months

Question 20

GATT

Answer 20

General agreements on tariffs and trade - agency of the UN. operates under 4 principles.

1. Conduct trade in a non-discriminatory manner
2. Treat import goods the same as export goods
3. Protect domestic industries through tariffs
4. Member countries to provide open list of tariffs and other trade restrictions imposed on member countries

Question 21

FTA

Answer 21

Free Trade Agreement - open up trade between Can and USA - removing most tariffs

Question 22

NAFTA

Answer 22

North American Free Trade Agreement - Mexico, Can, USA

Question 23

WTO

Answer 23

World Trade Organization - works to improve trade relations among countries of the world especially by removing tariffs and other barriers to trade

Question 24

G8

Answer 24

Informal group of 8 major industrial democracies

1. Canada
2. France
3. Germany
4. Italy
5. Japan
6. Russia
7. UK
8. USA

Question 25

La Francophonie

Answer 25

Enhance the economic development of countries with French speaking citizens

Question 26

CIDA

Answer 26

Canadian International Development Agency - government agency responsible for administering foreign aid programs in less developed countries

Question 27

Intermodal Transportation

Answer 27

Several types of transportation needed to move freight because of distance and geography

Question 28

Common Market

Answer 28

Strongest form of regional integration. Include free trade of goods and services and free movement of capital and labour within trading bloc

Question 29

EU

Answer 29

European Union - 25 European countries - the strongest and largest, most powerful common market

Question 30

Anti-globalization

Answer 30

These against global trade agreements and their consequences for people in less developed countries, the environment, and peace.

Question 31

Austerity Programs

Answer 31

Reducing government debts by increasing taxes and cutting social programs

Question 32

Trade Liberalization

Answer 32

Describes the process of reducing barriers to trade

Question 33

Crown Corp

Answer 33

Owned by the government - owned by Queen

Question 34

Deregulation

Answer 34

Removing government regulation and opening up industry to more competition.

Question 35

Privatization

Answer 35

Method of deregulation - sale to private business from gov

Question 36

Economic nationalism

Answer 36

Impact of foreign investment in countries economic independence and identity

Question 37

Outsourcing

Answer 37

Company hires outside help to fulfill certain tasks in production

Question 38

Knowledge economy

Answer 38

Use of knowledge to produce economic benefits