The Globalization of Economy

Question 1

A historical process, the result of human innovation and technological progress.

Answer 1

Economic Globalization

Question 2

Increasing integration of economies around the world, particularly through the movement of goods, services, and capital across borders.

Answer 2

Economic Globalization

Question 3

Movement of people (labor) and knowledge (technology) across international borders.

Answer 3

Economic Globalization

Question 4

The interconnected dimensions of the phenomenon (4)

Answer 4

1. the globalization of trade of goods and services;
2. financial and capital markets;
3. technology and communication;
4. production

Question 5

Examples of a global market

Answer 5

1. The proliferation of the Internet and the emergence of market places.

Question 6

Examples of market places in the Internet

Answer 6

E-bay, Amazon, and other global online markets.

Question 7

Examples of a global market

Answer 7

2. Tramp Shipping

Question 8

• International shipping industry

- A certain market segment in which vessels that operate do not trade regularly between certain fixed ports.

Answer 8

Tramp Shipping

Question 9

• Shipping service where carriers contract to haul cargo in shipload lots between ports designated by charterer.

Answer 9

Tramp Shipping

Question 10

Provides convenient, timely & economic transportation for many goods needed in a complex industrial society.

• In established trades (i.e., grain from US, Canada, Argentine & Australia to N. Europe, Med, Africa, Japan & S. Asia
• On new routes to alleviate temporary critical shortages

Answer 10

Tramp ships

Question 11

Examples of a global market

Answer 11

3. The market for foreign exchange

Question 12

Foreign exchange

Answer 12

The largest market in the world in terms of turnover.

Question 13

Example of Foreign Exchange

Answer 13

Forex Trading

Question 14

Has been around since the 15th century when European exploration & colonization created global empires & markets, but most historians and economists agree that today is special by extent of interdependence and the speed by which it has occurred.

Answer 14

Globalization

Question 15

Two factors that underlie globalization

Answer 15

1. “Decline in barriers to the free flow of goods, services, and capital” that has occurred since the end of World War II

Question 16

Two factors that underlie globalization

Answer 16

2. Technological change

Question 17

Declining Trade and Investment Barriers

Answer 17

During the 1920s and ’30s, many nations erected formidable barriers to international trade and foreign direct investment

Question 18

Declining Trade and Investment Barriers

Answer 18

Advanced industrial nations of the West committed themselves after World War II to REMOVING BARRIERS to the free flow of goods, services, and capital between nations.

Question 19

Lowering of trade barriers that made globalization possible

Answer 19

The Role of Technology

Question 20

Has made it a transforming movement in the global market

Answer 20

Technology

Question 21

has exploded in last 20 years

Answer 21

World Wide Web

Question 22

Computers can move money around the world

Answer 22

Finance capital

Question 23

9th largest economy in the world

Answer 23

Silicon Valley

Question 24

Why it is called Silicon Valley?

Answer 24

A region on the San Francisco Peninsula in California where the miniaturized electronics industry is centered, so called because most of the devices built there are made of semi-conductors such as silicon.

Question 25

What companies are located in Silicon Valley?

Answer 25

The biggest Companies
1. Apple - one of the most successful companies in the entire world, and is headquartered in Cupertino, California

2. Google
3. Facebook
4. Wells Fargo
5. Visa
6. Chevron