Exam 1: Globalization

Critics of globalization believe the overall gains that may accrue to national economies are worth the lost livelihoods that individuals may suffer.

Globalization is the trend characterized by ________ (national boundaries becoming less relevant), and is different from ________ (entities cooperating across national boundaries).

________ is the dynamic force transforming our societies and commercial activities and causing increased competition for all firms.

Trade unions claim that by permitting international firms to continually move to nations with relatively lower labor standards, globalization ________ labor's bargaining power and forces overall labor standards ________.

The quest for natural ________ draws many companies into international markets.

________ is any commercial transaction that crosses the borders of two or more nations.

Those opposed to globalization say that it ________ democracy, while those favoring globalization say that it ________ democracy worldwide.

Globalization defenders believe globalization creates positive benefits by reducing labor market flexibility in developed nations.

The three main branches of the debate over income inequality are ________.

A company that sells a global product can explore opportunities abroad if the home market is small or becomes saturated.

Explain why growth in world trade is outpacing growth in world output.

Products marketed in all countries essentially without any changes are called "international products."

Scenario: Tacky Toys and Mushi Toys Tacky Toys, a U.S.-based toy retailer, buys all its merchandise from Mushi Toys, a Japan-based toy manufacturer with production facilities in 12 nations. Mushi Toys markets its toys globally without modification. -Mushi Toys selling its products to Tacky Toys is called ________.

Businesses are using the Internet to sharpen their forecasting, lower their inventories, and improve communication with their suppliers.

Both supporters and critics of globalization appear to agree that it causes dislocation in labor markets.

________ is(are) any commercial transaction(s) that cross(es) the borders of two or more nations.

Identify the World Trade Organization's (WTO) three main goals and explain how the WTO differs from the General Agreement on Tariffs and Trade (GATT).

A country's gross domestic product (GDP) per capita is simply its GDP divided by its ________.

The value of all goods and services produced by a country's domestic and international activities over a one-year period is called ________.

A special region in which companies can engage in tariff-free importing and exporting is called a(n) ________.