Globalization and Power Shifts

Question 1

The total level of world-wide trade has ___ ___ in the past 50 years.

Answer 1

grown dramatically

Question 2

During the past 50 years, the four largest export countries have been ___ ___, ___, ___, and ___.

Answer 2

the U.S., Germany, Japan and China.

Question 3

Briefly describe the shifts in the share of world-wide trade over the past 50 years or so.

Answer 3

The total level of world-wide trade has grown dramatically in the past 50 years. During that time the four largest export countries have been the U.S., Germany, Japan and China. The share of world-wide exports attributable (in total) to the four countries has remained fairly constant, around 30%. But, among those countries the share has changed significantly. The U.S. has lost share, from about 18% to 8%. Germany has maintained about a 9% share. Japan has increased share from about 3% to about 5% and China has increased share from about 2% to about 9%.

Question 4

Briefly describe the shifts in the share of world-wide GDP (output) over the past 50 years or so.

Answer 4

While total world-wide output has more than tripled over the last 50 years, the growth has not been uniform among countries/regions. The most dramatic changes have been in the decline of European share of output and the increase in the Asian share of output. The European share of world-wide output has declined from about 36% to about 27% and the Asian share has increased from about 15% to about 25%. The share of output held by the U.S., Latin America and Africa/Middle East has remained fairly constant.

Question 5

While total world-wide output has more than ___ over the last 50 years, the growth has ___ ___ ___ among countries/regions.

Answer 5

tripled; not been uniform

Question 6

The most dramatic changes in total world-wide output over the last 50 years, have been in the decline of___ share of output and the increase in the ___ share of output.

Answer 6

European ; Asian

Question 7

If the current trends continue, the ___ ___ will surpass the U.S. economy as the world’s largest economy.

Answer 7

Chinese economy

Question 8

Two factors have been particularly important in the movement of services world-wide:
??

Answer 8

1. The internet and global communication have enabled entities to relocate value-adding services to low-cost locations.
   a. Various kinds of trade services (e.g., call centers, help lines, etc.), consulting services (IT, medical administration, etc.) development services (programming, debugging, etc.) and others can be carried out in locations where costs are low, with the benefits being realized in the firm’s home country.
2. The shifts in certain forms of trade have necessitated complementary shifts or development of support services in foreign locations.

Question 9

What are “direct investment shifts”?

Answer 9

Shifts in other economic activities have been paralleled by shifts in foreign direct investment (FDI).

Question 10

Define “service shifts”.

Answer 10

Like output and trade, there has been a shift in certain services from being provided domestically to being provided by foreign-located service providers.

Question 11

What is a “multinational entity, multinational enterprise or multinational company”?

Answer 11

An entity that has its headquarters in one country, known as the home country, and operates in one or more other countries, known as host countries.

Question 12

Multinational firms account for a large share of ___ ___.

Answer 12

global production.

Question 13

According to estimates of UNCTAD in its World Investment Report 2011, multinational firms account for __ percent of global GDP and a ___ of international trade.

Answer 13

25 ; third

Question 14

The U.S. share of the total world-wide accumulated value of foreign direct investment has ___ in recent years.

Answer 14

decreased

Question 15

The world’s top six largest export countries account for approximately ___-___% of world-wide exports.

Answer 15

40-45%

Question 16

___ and ___ exports more goods and services than the U.S

Answer 16

China and Germany

Question 17

___ ___ is measured by real GDP

Answer 17

World-wide output

Question 18

World-wide output is measured by ___ ___.

Answer 18

real GDP - World-wide output is measured by summing the real GDP of the world’s countries.

Question 19

Over the past 30 years, ___ ___ countries have increased their share of world-wide output.

Answer 19

Asian-area

Question 20

U.S. share of world-wide exports has___ over the past 15 years.

Answer 20

declined

Question 21

___ and ___ are the world’s largest export countries, each accounting for about 9% of worldwide exports.

Answer 21

China and Germany

Question 22

The U.S. share (percentage) of worldwide GDP (output) is approximately __%.

Answer 22

25%

Question 23

___ has had the greatest decline in share of worldwide output over the last 40 years. During that time, virtually all of the largest producers of the area have suffered declines in share of world output, totaling about 10%.

Answer 23

Europe

Question 24

___ has had the greatest increase in share of worldwide output over the last 30 years. During this period, this area’s share of worldwide output has increased by more than 10%.

Answer 24

Asia

Question 25

The world’s largest exporters of goods and services are ___, ___, ___ ___, and ___ , in that order.

Answer 25

China, Germany, the U.S., and Japan

Question 26

The U.S. exports about ___% of worldwide exports.

Answer 26

10%