FVC1 study guide | QUESTIONS AND ANSWERS | 2025/2026
Terms in this set (110)
What are the characteristics of Communication, transportation, transnational businesses, free
globalization? trade agreements, consumer culture, labor force.
International monetary funds: provides financial stability.
World bank: reconstruction and restructuring economies as
How do major international an opportunity to reach global solutions to national
institutions facilitate challenges.
globalization?
World trade organization: focuses on lowering/removing
trade barriers to encourage trade and globalization.
Successful institutions play three important roles: they
channel information about market conditions, goods,
Why is it important for political services, and participants; they define property rights and
leaders and institutions to be contracts; they promote competition and innovation the
transparent in responding to foundations of the globalized business world are political
global competition? and so are the biggest threats to the system. World bank
encourages political institutions to be transparent and
convince their constituents that while globalization does
create "winners" and "losers" policies will be in place to
retain and uplift the downtrodden.
Countries with sound economic policies will be more
What are key policy measures successful in the global economy, encouraging further
that make globalization opening and cross border integration. Governments need to
sustainable? put in place good governance, competitive markets, and
property rights, and assist in the fight against corruption.
Advances in technology along with the lower costs to
What are ways that technology obtain internet access and technology is allowing for
bridges the global divide? underdeveloped countries to now utilize it and the
advantages of technology lessening the digital divide and
closing the gap between developed and developing
countries and markets.
Arguments against globalization highlight problems such
What is the rationale of as the cost of disruptive economic change including job
specific anti- globalization losses and stagnant wages, the loss of local control over
,arguments? economic policies and developments, the disappearance of
old industries, and related erosion of communities
, trade benefits consumers in three major ways:
A greater amount of choice in the availability of
goods and services; Lower prices for goods and
What are the benefits of trade?
services consumed; and
Higher living standards.
Trade has influenced culture, shaped history, raised living
standards, and expanded knowledge to include new ways
of thinking.
Foreign direct investment (FDI) in a country brings funds and
business culture from abroad, creates new well-paying
What are the benefits of
jobs, introduces innovative technologies, and enhances
foreign investment?
the skills of domestic workers. Because of the largely positive
impact that FDI has on countries, governments all over
the world try to create a business- friendly environment to
attract such investments.
mercantilism
absolute
What are the major
advantage
international trade theories
comparative
and what are key features of
advantage
each one?
Heckscher-Ohlin
theory
factor-price equalization theory
Porter's Diamond Model
What is the impact of trade limiting imports from those firms trade barriers help domestic
policy on various stakeholders companies.
such as businesses,
consumers, and governments? Consumers may suffer, though, as import restrictions result in higher
prices.
Managed trade refers to agreements, sometimes temporary,
between countries (or a group of countries) that aim to
achieve certain trade outcomes for the countries
What is the rationale for
managing trade? involved. Managed trade aims to replace global market
or economic forces with government actions to determine
trade outcomes. Under a managed trade regime,
Terms in this set (110)
What are the characteristics of Communication, transportation, transnational businesses, free
globalization? trade agreements, consumer culture, labor force.
International monetary funds: provides financial stability.
World bank: reconstruction and restructuring economies as
How do major international an opportunity to reach global solutions to national
institutions facilitate challenges.
globalization?
World trade organization: focuses on lowering/removing
trade barriers to encourage trade and globalization.
Successful institutions play three important roles: they
channel information about market conditions, goods,
Why is it important for political services, and participants; they define property rights and
leaders and institutions to be contracts; they promote competition and innovation the
transparent in responding to foundations of the globalized business world are political
global competition? and so are the biggest threats to the system. World bank
encourages political institutions to be transparent and
convince their constituents that while globalization does
create "winners" and "losers" policies will be in place to
retain and uplift the downtrodden.
Countries with sound economic policies will be more
What are key policy measures successful in the global economy, encouraging further
that make globalization opening and cross border integration. Governments need to
sustainable? put in place good governance, competitive markets, and
property rights, and assist in the fight against corruption.
Advances in technology along with the lower costs to
What are ways that technology obtain internet access and technology is allowing for
bridges the global divide? underdeveloped countries to now utilize it and the
advantages of technology lessening the digital divide and
closing the gap between developed and developing
countries and markets.
Arguments against globalization highlight problems such
What is the rationale of as the cost of disruptive economic change including job
specific anti- globalization losses and stagnant wages, the loss of local control over
,arguments? economic policies and developments, the disappearance of
old industries, and related erosion of communities
, trade benefits consumers in three major ways:
A greater amount of choice in the availability of
goods and services; Lower prices for goods and
What are the benefits of trade?
services consumed; and
Higher living standards.
Trade has influenced culture, shaped history, raised living
standards, and expanded knowledge to include new ways
of thinking.
Foreign direct investment (FDI) in a country brings funds and
business culture from abroad, creates new well-paying
What are the benefits of
jobs, introduces innovative technologies, and enhances
foreign investment?
the skills of domestic workers. Because of the largely positive
impact that FDI has on countries, governments all over
the world try to create a business- friendly environment to
attract such investments.
mercantilism
absolute
What are the major
advantage
international trade theories
comparative
and what are key features of
advantage
each one?
Heckscher-Ohlin
theory
factor-price equalization theory
Porter's Diamond Model
What is the impact of trade limiting imports from those firms trade barriers help domestic
policy on various stakeholders companies.
such as businesses,
consumers, and governments? Consumers may suffer, though, as import restrictions result in higher
prices.
Managed trade refers to agreements, sometimes temporary,
between countries (or a group of countries) that aim to
achieve certain trade outcomes for the countries
What is the rationale for
managing trade? involved. Managed trade aims to replace global market
or economic forces with government actions to determine
trade outcomes. Under a managed trade regime,
