Global Economic Activity

Question 0

Focusing on relative strength

Answer 0

Comparative advantage

Each country should specialize in what it can produce most efficiently

Question 1

Economic globalization

Answer 1

Increasing integration and interdependence of national economies around the world

Question 2

Expanding markets

Answer 2

Opportunity to expand markets

Question 3

Pursuing economies of scale

Answer 3

Savings from buying parts and materials, manufacturing, or marketing in large quantities

Question 4

Acquiring materials, goods, and services

Answer 4

Increases buyers choice

Question 5

Keeping up with customers

Answer 5

Expand to keep or attract multinational customers

Question 6

Keeping up with competitors

Answer 6

Engage in global scale because competitors are doing so

Question 7

Trading Blocs

Common Markets

Answer 7

Regional Organizations that promote trade among member nations

Question 8

Trading Agreement Objectives

Answer 8

Ensure economic group and benefit of members
Promote trade within agreement and create uniform barriers against goods and services entering the region from nonmember countries

Question 9

Trade Protectionism

Answer 9

Use of government regulation to limit the import of goods and services 
Tariffs
Quotas
Embargoes
Export Subsidies

Question 10

Pros of trade protectionism

Answer 10

Protects domestic industries

Question 11

Cons of trade protectionism

Answer 11

Increases consumer price

Reduces buyers’ choice