INTB Test 1 Exam #1 Questions with correct answers
globalization - ✔✔trend away from distinct national economic units and toward
one huge global market
2 facets of globalization - ✔✔1. globalization of markets 2. globalization of
production
globalization of markets - ✔✔merging of historically distant/separate markets
into one huge global marketplace
globalization of production - ✔✔sourcing of goods and services from locations
around the world to take advantage of national differences in the cost and quality
of factors of production
factors of production - ✔✔inputs into the productive process of a firm: labor,
management, land, capital, technological know-how
General Agreement on Tariffs and Trade (GATT) - ✔✔international treaty that
committed signatories to lowering barriers to the free flow of goods across
national boarders; led to WTO
WTO - ✔✔polices the world trading system and makes sure nation-states adhere
to the rules laid down in trade treaties signed by WTO member states
IMF - ✔✔established to maintain order in the international monetary system
, World Bank - ✔✔international institution set up to promote general economic
development in the world's poorer nations
UN - ✔✔international org aimed at promoting peace/security/cooperation
UN's 4 purposes - ✔✔1. maintain international peace and security 2. develop
friendly relations among nations 3. cooperate in solving international problems +
promote respect for human rights 4. be a center for harmonizing the actions of
nations
Group of Twenty (G20) - ✔✔comprises the finance ministers and central bank
governors of the 19 largest economies & representatives from EU and Euro
Central Bank
factors underlining greater globalization - ✔✔1. decline in trade barriers 2.
technological change
international trade - ✔✔a firm exports goods or services to a consumer in
another country
foreign direct investment - ✔✔direct investment in a business operations in a
foreign country
what led to the great depression? - ✔✔tit-for-tat strat where countries had high
tariffs on the imports of manufactured goods and the other country would
retaliate
globalization - ✔✔trend away from distinct national economic units and toward
one huge global market
2 facets of globalization - ✔✔1. globalization of markets 2. globalization of
production
globalization of markets - ✔✔merging of historically distant/separate markets
into one huge global marketplace
globalization of production - ✔✔sourcing of goods and services from locations
around the world to take advantage of national differences in the cost and quality
of factors of production
factors of production - ✔✔inputs into the productive process of a firm: labor,
management, land, capital, technological know-how
General Agreement on Tariffs and Trade (GATT) - ✔✔international treaty that
committed signatories to lowering barriers to the free flow of goods across
national boarders; led to WTO
WTO - ✔✔polices the world trading system and makes sure nation-states adhere
to the rules laid down in trade treaties signed by WTO member states
IMF - ✔✔established to maintain order in the international monetary system
, World Bank - ✔✔international institution set up to promote general economic
development in the world's poorer nations
UN - ✔✔international org aimed at promoting peace/security/cooperation
UN's 4 purposes - ✔✔1. maintain international peace and security 2. develop
friendly relations among nations 3. cooperate in solving international problems +
promote respect for human rights 4. be a center for harmonizing the actions of
nations
Group of Twenty (G20) - ✔✔comprises the finance ministers and central bank
governors of the 19 largest economies & representatives from EU and Euro
Central Bank
factors underlining greater globalization - ✔✔1. decline in trade barriers 2.
technological change
international trade - ✔✔a firm exports goods or services to a consumer in
another country
foreign direct investment - ✔✔direct investment in a business operations in a
foreign country
what led to the great depression? - ✔✔tit-for-tat strat where countries had high
tariffs on the imports of manufactured goods and the other country would
retaliate
