The global economy

Question 1

According to International Monetary
Fund (IMF) it is the increasing
integration of economies around
the world through the movement of
goods, services, and capital across
borders.

Answer 1

Economic Gloalization

Question 2

According to IMF, the value of trade as a percentage
of World GDP increased from ___% in ___ to
_____ in ____

Answer 2

42.1% in 1980’s
62.1% in 2007

Question 3

A type of investment in which a company established a business in another country for the production of goods and services and still takes part of managing of that business.

Answer 3

Foreign Direct Investment

Question 4

3 subtopics of Global economy

Answer 4

1. Economic Globalization
2. International trade system
3. The Actors that facilitate
   Economic Globalization

Question 5

A network of trade routes
connecting China and the Far
East with the Middle East and
Europe.

Answer 5

Silk road

Question 6

according to the historians____ that the age of globalization began when,
“All important populated continents began to exchange products continuously- both with each other directly and indirectly via other continents – and in values sufficient to generate crucial impacts on all trading partners.”

Answer 6

Dennis Flynn and Arturo
Giraldez

Question 7

Connected Manila and Mexico; the first time that
Americas were directly connected to Asian trading
routes.

Answer 7

Galleon Trade

Question 8

The Actors that facilitate
Economic Globalization

Answer 8

1. International Monetary System
2. Nation-State
3. Global Corporations

Question 9

Types of International Monetary System

Answer 9

1. the Gold standard
2. The Bretton woods system

Question 10

• European nations and US shifted to gold at the
  international monetary conference in Paris
• It was believed to guarantee a non-inflationary,
  stable economic environment, a means for
  accelerating international trade.

Answer 10

the Gold standard

Question 11

• _______ agreement of 1944
  established a new global monetary system.
• Countries promised that their central banks
  would maintain fixed exchange rates between
  their currencies and the dollar.

Answer 11

The Bretton Woods

Question 12

• Two Financial Institutions of the Bretton woods system

Answer 12

a. International Bank for Reconstruction and
Development (IBRD) or now known as World
Bank

b. International Monetary Fund (IMF)

Question 13

Acts as a mediator between the effects of
globalization and the national economy.

Answer 13

Nation-state

Question 14

• These companies work to have a foothold in a
  large number of countries.
• A global company is generally referred to as a
  multinational corporation (MNC).

Answer 14

Global Corporations