ITA

Question 1

derived from the word globalize, which refers to the emergence of an international network of economic systems.

Answer 1

globalization

Question 2

is a process of international integration, and its development is due to increased exchange of products, services, etc. at global level, also with the influences of other aspects related to cultural and social environment.

Answer 2

globalization

Question 3

is the exchange of capital, goods, and services across international borders or territories.

Answer 3

international trade

Question 4

fundamental component of globalization

Answer 4

growth of international trade

Question 5

company conducting international business is known as a

Answer 5

multinational or transnational company

Question 6

one barrier to entry in the international market

Answer 6

tariffs

Question 7

Trade which takes place within the geographical boundaries of the country

Answer 7

domestic trade

Question 8

domestic trade also known as

Answer 8

internal business

Question 9

There are many privileges which a domestic business enjoys like

Answer 9

low transaction cost

Question 10

Countries will benefit by concentrating on the production of this goods in which they have a relative advantage.

Answer 10

comparative advantage

Question 11

It is the ability of an individual, company, region, or country to produce a greater quantity of a good or service with the same quantity of inputs

Answer 11

absolute advantage

Question 12

are the goods and services a business or customer purchases from another country

Answer 12

imports

Question 13

Importing raw materials and goods is one of the paths of increasing the

Answer 13

profit margins

Question 14

goods and services that are produced in one country and sold to buyers in another.

Answer 14

exports

Question 15

selling of goods and services from the home country to a foreign nation.

Answer 15

exporting

Question 16

are important because together they make up a country’s balance of trade, which can impact an economy’s overall health

Answer 16

exports and imports

Question 17

role and importance of international trade

Answer 17

equality of prices
to improve quality of low products

Question 18

reasons for glowing globally

Answer 18

increase productivity

Question 19

problems or difficulties

Answer 19

distance

Question 20

advantages

Answer 20

fall of prices

Question 21

disadvantages

Answer 21

exhaustion of resources

Question 22

tax on imported goods or services

Answer 22

tariff

Question 23

reasons for tariffs

Answer 23

raise tax revenues

Question 24

price of import rises, cheaper domestic goods become more attractive

Answer 24

effect

Question 25

limits the amount of an imported good allowed into the country

Answer 25

quota

Question 26

evidence of the exchange

Answer 26

obsidian and flint

Question 27

materials used for creating jewelry were traded with

Answer 27

egypt

Question 28

the first long distance trade occurred between

Answer 28

mesopotamia and harappan civilization

Question 29

4 phases of the trade theories

Answer 29

pre classical version, classical version, modern version, new version

Question 30

is an economic doctrine which believes that the power and glory nation depend on its wealth

Answer 30

mercantilism

Question 31

argued for benefits of free trade

Answer 31

adam smith’s “the wealth of nations”

Question 32

the simple truth that for two nations to trade with each other voluntarily, both nations must gain.

Answer 32

absolute advantage

Question 33

can be illustrated with production possibility frontier

Answer 33

opportunity cost

Question 34

that shows the alternative combinations of the two commodities that a nation can produce by fully utilizing all of its resources with the best technology available on it.

Answer 34

curve