(P) L2: The Global Economy (Lecture-based)

Question 1

Refers to companies that operate in 2 or more countries

Answer 1

Global corporation

Question 2

Refers to an entity that functions across multiple countries (more complex than global corporations)

Answer 2

Transnational corporation

Question 3

This refers to exporting more and importing less

Answer 3

Trade surplus

Question 4

This refers to importing more and exporting less

Answer 4

Trade deficit

Question 5

T or F: The first industrialized countries have a tendency to not be classified as “superpower countries”

Answer 5

True

Question 6

T or F: Powerful countries rely on what they produce and not on their GDPs

Answer 6

False (baliktad)

Question 7

What are the four types of globalization?

Answer 7

Politics, cultural, economic, and ecological

Question 8

T or F: Anything that creates finances and makes money move worldwide cannot automatically be considered as economic globalization

Answer 8

False

Question 9

T or F: Business can only refer to products

Answer 9

False (products and services)

Question 10

T or F: Capital only refers to money

Answer 10

False (can also refer to humans)

Question 11

This is enjoyed by countries that produces products and offer lower prices

Answer 11

Comparative advantage

Question 12

This is the result of production using fewer resources compared to other countries

Answer 12

Absolute advantage

Question 13

Refers when quantities beyond the limit are to be taxed

Answer 13

Quota

Question 14

This is the ultimate determinant of economic advancements

Answer 14

Manpower/human resources

Question 15

Refers to:
→ a treaty that reduces tariff
→ all member countries would be privileged with a discount

Answer 15

World Trade Organization

Question 16

On Jan 1, 1995, the number in GATT reduced from 123 countries to how many?

Answer 16

76

Question 17

Responsible for:
- reduction of tariff
- equality of all countries
- non-discriminatory trade treatment

Answer 17

General Agreement for trade and tariffs