INTB 200 Midterm Exam #1 Questions with correct
answers
Gross Domestic Product (GDP) - ✔✔Total value of goods and services produced
within a country's borders
Gross National Income (GNI) - ✔✔Is a measure of a country's income.
GDP only counts income received from domestic sources; however, GNI includes
net income received from abroad.
Purchasing Power Parity (PPP) - ✔✔GNI adjusted for the cost of living, adjusts
income figures based on cost of living differences across countries
Human Development Index (HDI) - ✔✔A statistical measurement of life
expectancy, education, and ability to provide for basic needs
Gini Index - ✔✔Measures income inequality within a country (0 = perfect
equality; 1 = perfect inequality)
Globalization - ✔✔A shift towards a more integrated and interdependent world
economy
Globalization of Markets - ✔✔The merging of historically distinct and separate
national markets into a single, vast global marketplace
,Globalization of Products - ✔✔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 (labor, energy, land, and capital)
Outsourcing Production (Globalization) - ✔✔Contracting activities to external
firms. Early iderations revolved around manufacturing, modern communications
technology allows companies to outsource a multitude of services.
Offshore Production (Globalization) - ✔✔Moving production or services to
another country
Drivers of Globalization - ✔✔- Decline in trade and investment barriers
- Advances in transportation and communication technology
Impediments of Globalization - ✔✔- Protectionism
- Cultural differences
- Political and economic risk
Globalization Pros - ✔✔- Lower prices
- Efficiency
- Economic growth
Globalization Cons - ✔✔- Job displacement
- Income inequality
- Environmental concerns
, GATT - ✔✔General Agreement on Tariffs and Trade
WTO - ✔✔World Trade Organization
IMF - ✔✔International Monetary Fund
WB - ✔✔World Bank
UN - ✔✔United Nations
G20 - ✔✔Group of 20
The most global of markets are for industrial goods and materials that serve
universal needs around the world - ✔✔Oil
TRIPS - ✔✔Trade Related Aspects of Intellectual Property
Provides low-interest funding and grants for economic development... - ✔✔World
Bank
International Monetary Fund - ✔✔- Maintains order in the international
monetary system
- Lender of last resort.
- Requires nation-states to adopt specific economic policies in return for loans.
answers
Gross Domestic Product (GDP) - ✔✔Total value of goods and services produced
within a country's borders
Gross National Income (GNI) - ✔✔Is a measure of a country's income.
GDP only counts income received from domestic sources; however, GNI includes
net income received from abroad.
Purchasing Power Parity (PPP) - ✔✔GNI adjusted for the cost of living, adjusts
income figures based on cost of living differences across countries
Human Development Index (HDI) - ✔✔A statistical measurement of life
expectancy, education, and ability to provide for basic needs
Gini Index - ✔✔Measures income inequality within a country (0 = perfect
equality; 1 = perfect inequality)
Globalization - ✔✔A shift towards a more integrated and interdependent world
economy
Globalization of Markets - ✔✔The merging of historically distinct and separate
national markets into a single, vast global marketplace
,Globalization of Products - ✔✔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 (labor, energy, land, and capital)
Outsourcing Production (Globalization) - ✔✔Contracting activities to external
firms. Early iderations revolved around manufacturing, modern communications
technology allows companies to outsource a multitude of services.
Offshore Production (Globalization) - ✔✔Moving production or services to
another country
Drivers of Globalization - ✔✔- Decline in trade and investment barriers
- Advances in transportation and communication technology
Impediments of Globalization - ✔✔- Protectionism
- Cultural differences
- Political and economic risk
Globalization Pros - ✔✔- Lower prices
- Efficiency
- Economic growth
Globalization Cons - ✔✔- Job displacement
- Income inequality
- Environmental concerns
, GATT - ✔✔General Agreement on Tariffs and Trade
WTO - ✔✔World Trade Organization
IMF - ✔✔International Monetary Fund
WB - ✔✔World Bank
UN - ✔✔United Nations
G20 - ✔✔Group of 20
The most global of markets are for industrial goods and materials that serve
universal needs around the world - ✔✔Oil
TRIPS - ✔✔Trade Related Aspects of Intellectual Property
Provides low-interest funding and grants for economic development... - ✔✔World
Bank
International Monetary Fund - ✔✔- Maintains order in the international
monetary system
- Lender of last resort.
- Requires nation-states to adopt specific economic policies in return for loans.
