International

Question 1

It is the interaction between different countries and international institutions. It also addresses many international topical issues such as rapid growth of trade and financial crisis that spread across countries.

Answer 1

International Economics

Question 2

4 Windows on the Modern World Economy

Answer 2

International Trade
International Production
International Finance
International Development

Question 3

It refers to the exchange of goods and services among the countries of the world

Answer 3

International Trade

Question 4

It deals with production of goods and services in international location and markets.

Answer 4

International Production

Question 5

It is the study of monetary interactions that transpire between two or more countries.

Answer 5

International Finance

Question 6

Also known as Global Development, is a study in economics on how does countries and economies interact to attain growth and development.

Answer 6

International Development

Question 7

It is the increased interconnectedness and interdependence of peoples and countries.

Answer 7

Globalization

Question 8

It is the longest and historically most important land trade route in the world.

Answer 8

Silk Road

Question 9

The goods trade in this time were spices such as coves, nutmeg, and mace which originated in the Maluku Islands of Indonesia.

Answer 9

Spice Routes

Question 10

Different types of globalization

Answer 10

Economic Globalization
Cultural Globalization
Political Globalization
Social Globalization
Technological Globalization
Transportation Globalization
Environmental Globalization

Question 11

Effects of Globalization

Answer 11

1. Globalization has led to increased competition
2. Globalization causes exchange of technology
3. Globalization helps in knowledge and information transfer across the globe.
4. Globalization causes more education opportunities for people in developing countries.
5. Globalization has led to vast multinational and multicultural management.
6. Globalization increased emission.
7. Globalization lower the cost of production.
8. Globalization changed food supply.
9. Globalization has led to division of labor.

Question 12

Refers to the ways corporation do business as multinational organization nowadays.

Answer 12

Economic Globalization

Question 13

It refers to the interpenetration of cultures which, as a consequence, means nation adopt principles, beliefs, customs of other nations.

Answer 13

Cultural Globalization

Question 14

The development and growing influence of international organizations such as the UN or WHO means governmental action takes place at an international level.

Answer 14

Political Globalization

Question 15

The information moves almost in real-time together with the connection and interdependence events and consequences.

Answer 15

Social Globalization

Question 16

The phenomenon which millions of people are interconnected.

Answer 16

Technological Globalization

Question 17

International systems of transportation such as shipping and air travel.

Answer 17

Transportation Globalization

Question 18

Simply the consequence of all the after-effects of other types of globalization.

Answer 18

Environmental Globalization

Question 19

During this period, starting from the late 15th century, European adventurers forged connections between the Eastern and Western worlds, inadvertently stumbling upon the Americas.

Answer 19

Age of Discovery/Scientific Revolution

Question 20

This period marked a significant shift in global dynamics as advancements in
manufacturing, transportation, and communication technologies facilitated the widespread exchange of goods, ideas, and people across international borders.

Answer 20

Globalization 1.0
1st Industrial Revolution

Question 21

This period saw the widespread adoption of new technologies like electricity and the internal combustion engine, fostering industrialization and urbanization worldwide.

Answer 21

Globalization 2.0
2nd Industrial Revolution

Question 22

This period saw the widespread adoption of digital technologies, such as the internet and telecommunications, leading to increased global connectivity and integration.

Answer 22

Globalization 3.0
3rd Industrial Revolution

Question 23

A period of significant technological advancement and global integration. The convergence of digital, physical, and biological technologies revolutionized industries and reshaped economies and societies worldwide

Answer 23

Globalization 4.0
4th Industrial Revolution

Question 24

Effects of Globalization

Answer 24

1. Globalization has led to increase in competition.
2. Globalization causes exchange of technology.
3. Globalization helps in knowledge and information transfer across the globe.
4. Globalization causes more education opportunities for people in developing countries.
5. Globalization has led to vast Multinational and Multicultural Management.
6. Globalization increased emission.
7. Globalization lower the costs for production.
8. Globalization changed food supply.
9. Globalization has led to division of labor.

Question 25

Four Phases of the Trade Theories

Answer 25

1. Pre-Classical Version 2. Classical Version 3. Modern Version 4. New Version

Question 26

It is an economic doctrine which believes that the power and glory of a nation depend on its wealth was best served by increasing exports, in an effort to collect precious metals like gold and silver

Answer 26

Mercantalism

Question 27

It exists between nations when they differ in their ability to produce goods. More specifically, it exists when one country is good at producing one item, while another country is good at producing another item.

Answer 27

Absolute Advantage

Question 28

According to its law, even if one nation is less efficient than the other nation in the production of both commodities, there is still a basis for mutually beneficial trade. It is an economy 's ability to produce a particular good or service at a lower opportunity cost than its trading partners.

Answer 28

Comparative Advantage

Question 29

It is a Marxism theory that states that the relative price or economic value of a good or service is determined by the amount of labor required to produce it.

Answer 29

Labour Theory of Value

Question 30

It states that a country which is capital-abundant will export the capital-intensive good. Likewise, the country which is labor-abundant will export the labor-intensive good.

Answer 30

Heckscher-Ohlin Theorem

Question 31

It explains comparative advantage in terms of the factor abundance of nations and the factor intensity of commodities.

Answer 31

H-O model

Question 32

The concept that countries with a great deal of capital available import capital intensive commodities and export labor intensive commodities.

Answer 32

Leontief Paradox

Question 33

Paradox meaning

Answer 33

Para = Contrary to Doxa = Opinion

Question 34

This approach seeks to explain the pattern of trade in terms of domestic availability and non-availability of goods. In short, international trade takes place because of differences in the availability of certain products among countries.

Answer 34

Irving Kravis' Theory of Availability

Question 35

In his theory, he gave importance to demand side factors like similarity in income levels across nations and income distribution characteristics in determining pattern of trade. Who is he?

Answer 35

Staffan B. Linder

Question 36

As per this theory, international trade takes place between those countries which have similar income levels and demand patterns. Thus, this theory explains the reasons for large volume of trade in manufacturers among developed countries

Answer 36

Linder’s Theory of Volume of Trade and Demand Pattern

Question 37

He has put forth the product cycle hypothesis.

Answer 37

Raymond Vernon

Question 38

It states that the development of a new product moves through a cycle or a series of stages in the course of its development, and its comparative advantage changes as it moves through the cycle.

Answer 38

Vernon's Product Cycle Theory

Question 39

Any hurdle, impediment or roadblock that hampers the smooth flow of goods and services, and payments from one destination to another. They are man-made obstacles to the free movement of goods between different countries

Answer 39

Trade Barriers

Question 40

Types of Trade Barriers

Answer 40

Tariff Barriers and Non-tariff Barriers

Question 41

Kinds of Tariff Barriers On the basis of origin and destination of the goods crossing national boundaries:

Answer 41

Import Tariff Transit Tariff Export Tariff

Question 42

Kinds of Tariffs On the basis of quantification of tariffs:

Answer 42

Specific Tariff Ad Valorem Tariff Compound Tariff

Question 43

Kinds of Tariffs On the basis of the purpose it serves:

Answer 43

Revenue Tariff Protective Tariff

Question 44

Kinds of Tariffs On the basis of trade relations:

Answer 44

Single Column Tariff

Question 45

Kinds of Non-tariff Barriers

Answer 45

Quota System Voluntary Export Restraints (VER) Embargo Import License

Question 46

Economically, this tariff barrier are charged to generate revenue for the government and to protect local goods against the dominance of foreign products. (Example. Rice Tariffication Law, Safeguard Measures Act)

Answer 46

Import Tariff

Question 47

Tax imposed on a commodity when it crosses the national frontier between the originating country and the country to which it is cosigned to.

Answer 47

Transit Tariff

Question 48

A tax levied by the country of origin, on a commodity designated for use in other countries.

Answer 48

Export Tariff

Question 49

Is a tax levied as a fixed charge for each unit of a good that is imported.

Answer 49

Specific Tariff

Question 50

This type of tariff is levied as a fixed percentage of the value of the commodity imported.

Answer 50

Ad Valorem Tariff

Question 51

Meaning of Ad Valorem

Answer 51

"according to value" or "in proportion to the value"

Question 52

is a combination of an ad valorem and a specific tariff. It includes both a cost per unit, as well as a set percentage on the value of the good.

Answer 52

Compound Tariff

Question 53

It aims at collecting substantial revenue for the government. The tax is imposed on items of mass consumption, but the rate is low.

Answer 53

Revenue Tariff

Question 54

It aims at giving protection to home industries by restricting or eliminating competition. These are usually high so as to reduce imports.

Answer 54

Protective Tariff

Question 55

Tariff rates are fixed for various commodities and the same rates are made applicable to imports from all other countries. (Example. Preferential Trade Agreement (PTA))

Answer 55

Single Column Tariff

Question 56

It is a government-imposed trade restriction that limits the number of goods that a country can import or export during a particular period.

Answer 56

Quota

Question 57

The system of import quotas may be classified into three major groups which are?

Answer 57

Tariff Quota, Bilateral Quota, and Mixed Quota

Question 58

These are arrangements between exporting and importing countries whereby an exporting country limits the number of goods of a particular nature that it can export to a specific country or region.

Answer 58

Voluntary Export Restraints (VER)

Question 59

These are total bans of trade on specific commodities and may be imposed on imports or exports of specific goods that are supplied to or from specific countries.

Answer 59

Embargo/Embargoes

Question 60

It can be defined as administrative procedures requiring the submission of an application or other documentation (other than those required for customs purposes) to the relevant administrative body as a prior condition for importation of goods.

Answer 60

Import License

Question 61

Effect of Barriers

Answer 61

1. Employment 2. Domestic Firms 3. Consumers 4. Balance of Payments 5. Economic Growth

Question 62

This organization is the only global international organization dealing with the rules of trade between nations. The goal is to ensure that trade flows as smoothly, predictably and freely as possible.

Answer 62

World Trade Organization (WTO)

Question 63

Benefits of the WTO Trading System:

Answer 63

1. Disputes are handled constructively; 2. A system based on rules rather than power makes life easier for all; 3. Freer trade cuts the costs of living; 4. It provides more choice of products and qualities; 5. Trade stimulates economic growth; and 6. The system encourages good government.

Question 64

Role of the World Trade Organization

Answer 64

1. Trade Negotiations 2. Implementation and Monitoring 3. Dispute Settlement 4. Supporting Development and Building Trade Capacity 5. Outreach

Question 65

This phase is the first-time customers are introduced to the new product. A company must generally include a substantial investment in advertising and a marketing campaign focused on making consumers aware of the product and its benefits, especially if it is broadly unknown what the item will do. There is often little-to-no competition for a product, as competitors may just be getting a first look at the new offering.

Answer 65

Introduction Stage

Question 66

This is characterized by growing demand, an increase in production, and expansion in its availability. The amount of time spent in the introduction phase before a company's product experiences strong growth will vary from between industries and products. During the this phase, the product becomes more popular and recognizable.

Answer 66

Growth Stage

Question 67

This stage of the product life cycle is the most profitable stage, the time when the costs of producing and marketing decline.

Answer 67

Maturity Stage

Question 68

Some analysts refer to the maturity stage as when sales volume is ____________.

Answer 68

Maxed Out

Question 69

Product sales begin to drop due to market saturation and alternative products, and the company may choose to not pursue additional marketing efforts as customers may already have determined whether they are loyal to the company’s products or not.

Answer 69

Decline Stage

Question 70

Stages of Product Life Cycle

Answer 70

Introduction Stage Growth Stage Maturity Stage Decline Stage

Question 71

Two ways to define factor abundance.

Answer 71

1. In terms of physical units 2. In terms of relative factor prices