Globalization

Question 1

Political economy

Answer 1

The relationship between political activity and economic performance

Question 2

Gross domestic product (GDP)

Answer 2

The total value of all goods and services produced in one year in a certain country (measured in dollars)

Question 3

Purchasing power parity (PPP)

Answer 3

Based on comparing the value of production using the purchasing power of each national currency

Question 4

Gini coefficient

Answer 4

Measure of income inequality used to show the distribution of wealth in a given population (social inequality)

Question 5

Free-market systems

Answer 5

Less government control over economy and less public ownership of industries and services (ex. the US)

Question 6

Centrally planned systems

Answer 6

More government regulation and ownership of the economy (ex. China)

Question 7

Economic freedom index

Answer 7

Key ingredients of economic freedom (personal choice, voluntary exchange, freedom to compete, protection of individuals and property)

Question 8

Human Development Index (HDI)

Answer 8

Rating of human development based on life expectancy, adult literacy, educational enrolment, GDP per capita

Question 9

Tariffs

Answer 9

Increased price of imported goods, making them more expensive to the customer

Question 10

Quotas

Answer 10

A limited amount of something that is officially allowed

Question 11

Bans

Answer 11

A ban of certain products that is imported to a certain country

Question 12

Capitalism

Answer 12

Economic system in which businesses are privately owned

Question 13

Communism

Answer 13

The belief in a society without different social classes in which the methods of production are owned and controlled by all its members and everyone works as much as they can and receives what they need

Question 14

Outsourcing

Answer 14

To purchase or subcontract goods from a foreign supplier

Question 15

Offshoring

Answer 15

The practice of moving employees to other countries in order to lower cost

Question 16

Boycott

Answer 16

Withdraw from commercial or social relations with any organization as a punishment or protest

Question 17

Sanctions

Answer 17

Punishment for disobeying the law

Question 18

Trade war

Answer 18

Using the economic power to influence the international trade

Question 19

McDonald’s theory of international relations

Answer 19

A theory that no two countries with McDonald’s in them will ever go to war

Question 20

Globalization

Answer 20

The process in which a company develops international influence or starts operating on an international scale and the development of closer political, economical and cultural relations among all countries of the world as a result of travel and communication becoming easy

Question 21

Perestroika

Answer 21

A reform to improve economy and the trade in free markets

Question 22

Multinational corporations

Answer 22

Corporation that operates in multiple nations with a home office that coordinates global management

Question 23

Official Governmental bodies

Answer 23

Joined governmental organizations that control public policy and change different aspects of life (ex. UN)

Question 24

Non Governmental Organization (NGO)

Answer 24

An organization that is not a part of the government and set up by ordinary citizens. Deliver resources and serve social and political purpose (ex. Amnesty International, Greenpeace)

Question 25

Commanding Heights

Answer 25

Refers to the process of globalization, describing the corruption of economies and the rise of free market

Question 26

Inflation

Answer 26

An increase in prices over time, causing reduction in the value of money

Question 27

Hyperinflation

Answer 27

A rapid increase in prices