BUSMHR 2000 Exam 1 questions with correct answers

Globalization The shift toward a more integrated and interdependent world economy. Globalization of markets The merging of historically distinct and separate national markets into one huge global marketplace. Globalization of production The sourcing of goods and services from locations around the globe to take advantage of national differences in the cost and quality of factors of production. Factors of production Labor, energy, land, and capital. General Agreement on Tariffs and Trade (GATT) Institution created by voluntary agreement between individual nation-states and their functions are enshrined in international treaties. World Trade Organization (WTO) -GATT successor -Primarily responsible for policing the world trading system and making sure nation-states adhere to the rules laid down in trade treaties signed by WTO member states. International Monetary Fund (IMF) -Created in 1944 by 44 nations that met at Bretton Woods, New Hampshire. -Established to maintain order in the international monetary system. World Bank -Created in 1944 by 44 nations that met at Bretton Woods, New Hampshire. -Set up to promote economic development. -Less controversial than IMF