Unit 3

Question 1

communism

Answer 1

an economic system in which all goods are owned jointly

Question 2

globalization

Answer 2

increasing interdependence between people and economies around the world

Question 3

geography

Answer 3

the study or people, their environments, and their resources (natural, human labor, and climate)

Question 4

drought

Answer 4

lack of rainfall for a prolonged period of time

Question 5

desertification

Answer 5

the process of becoming a desert due to drought, overfarming, and overgrazing

Question 6

free trade

Answer 6

no restrictions on who, when, and what relating to a country’s trading

Question 7

inflation

Answer 7

when the value of a currency decreases

Question 8

tariff

Answer 8

a tax on imports

Question 9

interdependent

Answer 9

rely mutually on each other

Question 10

world bank

Answer 10

a group formed to help poor countries develop and provide financial assistance for countries to reconstruct after WWII

Question 11

IMF

Answer 11

International Monetary Fund

an organization created at the end of WWII to help countries whose economies are in trouble

Question 12

balance of trade

Answer 12

calculation of a countries exports minus its imports

Question 13

import

Answer 13

resources and goods that enter a country

Question 14

export

Answer 14

resources and goods that leave a country

Question 15

black market

Answer 15

a type of economic activity that takes place outside of government-sanctioned channels

Question 16

imperialism

Answer 16

takeover and domination by empire; extending rule or influence of one country over other countries/colonies

Question 17

MNC

Answer 17

Multinational Corporation

a corporation that has its facilities and other assets in at least one country other than its home country

Question 18

comparative advantage

Answer 18

what each country is least bad at producing; what they specialize in

Question 19

privatization

Answer 19

process of becoming privatized; encourages competition and is not run by the government

Question 20

modernization

Answer 20

process of becoming modernized by improving technology

Question 21

planned/command economy

Answer 21

an economic system where all of the major decisions related to production, distribution, commodity, and service prices are all made by the government

Question 22

market economy

Answer 22

an economic system where supply and demand market forces define what is produces, in what quantity, and at what price

Question 23

mixed economy

Answer 23

an economic system that combines a free market with some government intervention in the hopes of avoiding sustained downturns

Question 24

G-7/G-8

Answer 24

Improving economic state, human rights, nuclear power use, and terrorism

Question 25

G-20

Answer 25

In order to further economies, they supply funds to IMF to increase interdependence between counties when trading

Question 26

GATT

Answer 26

General Agreement on Tariffs and Trade

• Treat countries equally in trade
• limiting tariffs

Question 27

WTO

Answer 27

World Trade Organization

• tries to open trade and economies
• encourages development, levels playing field, promotes for competition, and opens access to markets

Question 28

EU

Answer 28

European Union

-12 countries trade freely in EU with no tax

Question 29

OPEC

Answer 29

Organization of Petroleum Exporting Countries

• group of countries that control the price of oil
• not consistent
• expand production, regulate global supply, and raise oil proces

Question 30

NAFTA

Answer 30

North American Free Trade Agreement

• Canada, US, and Mexico can trade without tariffs
• moving jobs to Mexico
• increased imports/exports
• political stability