Lesson 1

Question 1

is the word used to describe the growing interdependence of the world’s economies, cultures, and populations, brought about by cross-border trade in goods and services, technology, and flows of investment, people, and information.

Answer 1

Globalization

Question 2

process of forming the entire earth into one integrated economic market that transcends national or geographic boundaries.

Answer 2

Globalization

Question 3

Globalization

Answer 3

1.Improved transport
2.Containerization
3.Improved technology
4. Growth of multinational companies

Question 4

Economic growth is global in nature. This means countries are increasingly interconnected. (e.g. recession in one country affects global trade and invariably causes an economic downturn in major trading partners.)

Answer 4

Global trade cycle

Question 5

When US banks suffered losses due to the sub-prime mortgage crisis, it affected all major banks in other countries who had bought financial derivatives from US banks and mortgage companies.

Answer 5

Financial system increasingly global in nature

Question 6

It has increased the global interconnectedness of global financial markets.

Answer 6

Improved mobility of capital

Question 7

People are more willing to move between different countries in search for work.

Answer 7

Increased mobility of labor

Question 8

This enables firms to communicate on a global level, this may overcome managerial diseconomies of scale.

Answer 8

Internet

Question 9

is a science of extensive problems, each of which concerns everyone, and humanity in general as well, in new, qualitative, and in their tendencies existential ways.

Answer 9

Globalization