M6-The Impact of Globalization Flashcards
Globalization represents the increased dispersion and integration of the world’s economies. Globalization is often objectively measured as the growth in world trade as a percentage of GDP. (true or false)
true
A global economy with increased economies of scale will likely result in increased specialization in individual economies. (true or false)
true
Globalization is frequently associated with comparative advantage an increased specialization.
The International Monetary Fund does not regulate currency values. IMF activities are designed to stabilize exchange rates but is not empowered to regulate currency values. (true or false)
true
The concept of balance of power anticipates that no one nation will dominate or interfere with the activities of others. (true or false)
true
Sourcing requirements generally refer to content or value added limits on the percentage of labor or materials used in imported products. Compliance with limits may result in tariff reductions. (true or false)
true
Country risk encompasses the political risk, economic risk, transfer risk, sovereign risk, and exchange rate risk associated with engaging in business with foreign countries. (true or false)
true
Power concentrated in a single nation is referred to as a unipolar distribution of power. (true or false)
true
Opening markets to foreign investment is encompassed within globalization, which is the distribution of industrial and service activities across many nations. Investment growth rates will likely increase (rather than decrease) through globalization, as there are more opportunities for investment and growth. (true or false)
true
The emerging nations most frequently associated with the shift in the economic balance of power are the BRIC nations which include:
Brazil
Russia
India
China
Global sourcing is the use of a worldwide supply chain. The reduced production in US factories, as a result of a natural disaster in Japan, is an example of the complications that come from global sourcing. (true or false)
true
The failure of developed nations to fully engage emerging nations within worldwide institutions represents a lack of functional interdependence. (true or false)
true
Compliance with the requirements of worldwide rule-making bodies is largely dependent upon broad participation among all nations in those institutions.Without genuine participation, emerging nations may feel the pressure to circumvent pollution rules to catch up with the industrialized nations. While the impact of greenhouse emissions is an example of systemic interdependence, cooperation amongst nations to control those emissions is a demonstrations of effective functional interdependence.
A tariff is a tax imposed on imported goods and services. One of the desired effects of implementing a tariff is that if imported goods and services become more expensive, companies and individuals will be more likely to produce domestically- thereby increasing domestic employment. Taxes will have a negative effect on international business, thereby increasing domestic business. Workers will be needed to meet the demand domestically. (true or false)
true
