The challenges of globalization Flashcards
A TNC is:
A major TransNational Corporation
Most global commerce is carried out by a small number of powerful firms
The acceleration of globalization has been driven by:
- Technological innovation
- Transportation systems
- Social and political reforms
What is the world bank?
Provides economic development loans to its member nations
Funds are used mainly for roads, dams, power plants, and other infrastructure
What is the International Monetary Fund (IMF)?
- Sister organization to the world bank
- Makes currency exchange easier for member countries so that they can participate in global trade
- Imposes conditions on governments that receive its loans
What is the world trade organization?
International body that establishes the ground rules for international trade among nations
Its objective is to promote free trade
True or false:
Under the world trade organization’s most favored nation rule, member countries may not discriminate against foreign products for any reason
True
In a free enterprise system…
Members of society satisfy most of their economic needs through voluntary market transactions
In a central state control system…
The central government owns the property that is used to produce goods and services
The richest 1 percent of people in the world receive as much income annually as:
The poorest 57 percent
