Module 2 (The Global Economy)

Question 1

Poorest country in the world (2021)

Answer 1

Somalia

Question 2

Poverty rate of the Philipines (2021)

Answer 2

5.04%

Question 3

Why are more and more people becoming extremely poor around the world?

Answer 3

Due to economic globalization

Question 4

A historical process representing the result of human innovation and technological processes characterized by the increasing integration of economies around the world thru the movement of goods, services, and capital across borders.

Answer 4

Economic globalization

Question 5

2 broad categories of economic systems:

Answer 5

1. Free market/capitalism
2. Planned economies - communism o socialism

Question 6

4 factors of production:

Answer 6

1. Land
2. Labor
3. Capital
4. Entrepreneurship

Question 7

an economic system characterized by private or corporate ownership of capital goods, by investments that are determined by private decision, and by prices, production, and the distribution of goods that are determined mainly by competition in a free market

Answer 7

Capitalism

Question 8

: a system in which goods are owned in common and are available to all as needed
: a theory advocating elimination of private property

Answer 8

Communism

Question 9

GNI (Gross National Income) per Capita

Answer 9

> Economic growth
Inflation
Exchange rates
Population growth

Question 10

the total monetary or market value of all the finished goods and services produced within a country’s borders in a specific time period.

Answer 10

GDP (Gross Domestic Product) [Gawa Dito Pinas]

Question 11

: The total amount of money earned by a nation’s people and businesses.
:It is calculated by adding GDP to the inward remittances by businesses and individuals minus outward remittances by the foreigners residing in the country. So, it is = GDP = (EXFS – IMFS)

Answer 11

GNI (Gross National Income)

Question 12

: the total value of all the goods and services produced by a country in a particular year, including income from foreign investments.
: is an estimate of the total value of all the final products and services turned out in a given period by the means of production owned by a country’s residents.
: is commonly calculated by taking the sum of personal consumption expenditures, private domestic investment, government expenditure, net exports, and any income earned by residents from overseas investments, then subtracting income earned by foreign residents.

Answer 12

Gross National Product [Gawa Ng Pinoy]

Question 13

Characteristics of LOW income economies:

Answer 13

> Limited industrialization and high percentage of the population engaged in agriculture and subsitence farming
High birth rates
Low literacy rates
Heavy reliance on foreign ad
Political instability and unrest
Concentration in Africa south of the Sahara

Question 14

Characteristics of LOWER-MIDDLE income economies

Answer 14

> Early stages of industrialization
Factories supply a growing domestic market
Consumer markets are expanding
Labor-extensive industries
“Less Developed Countries”

Question 15

Characteristics of UPPER-MIDDLE income economies:

Answer 15

> Agricultural sector to industrial sector
Degree of urbanization increases
Rising wages
High rates of literacy
Advanced education
Lower wage cost
“Industrializing or Developing Countries”

Question 16

Characteristics of HIGH income economies:

Answer 16

> Sustained economic growth
“Advanced, Developed, Industrialized or Post-industrial countries”

Question 17

Widespread belief among powerful people that the global integration of economic maets is beneficial for everyone since it spreads freedom and democracy across the world.

Answer 17

Globalism

Question 18

6 core claims of market globalism:

Answer 18

1. Liberalization and global integration of markets
2. Inevitable and irreversible
3. Nobody is in charge of globalization
4. Benefits everyone
5. Furthers the spread of democracy in the world
6. Requires war on terror