The Impact of Globalization (B5:M6)

Question 1

what are the 4 emerging economies? BRIC

Answer 1

Brazil, Russia, India, China

Question 2

what risks does country risk encompass?

Answer 2

political, economic, transfer, sovereign, exchange rate

Question 3

how is globalization measured?

Answer 3

world trade growth as a % of GDP

Question 4

what does the International Monetary Fund do?

Answer 4

stabilizes exchange rates

Question 5

what is globalization frequently associated with?

Answer 5

comparative advantage and increased specialization

Question 6

what is a sourcing requirement?

Answer 6

content or value added limit on the % of labor or material used in imported products. Compliance may result in tariff reductions

Question 7

trade surplus

trade deficit

Answer 7

surplus: exports > imports
deficit: exports < imports

Question 8

the value of currency tends to rise when interest rates ___.

Answer 8

rise

Question 9

what is functional interdependence?

Answer 9

the participation of various nations in worldwide institutions