Chapter 1

What global institution was established on October 24, 1945 and one of its key purposes is to maintain international peace and security?

United Nations

The International Monetary Fund (IMF) has been criticized for

Compromising the jurisdiction and decision-making powers of the receiving country

___________ refers to the shift toward economic international integration.

Globalization

Identify the true statement about global market on the following.

National differences and taste preferences for consumer product is an important factor that acts as a brake on globalization

The globalization of markets and production implies that _______________.

domestic firms are facing intense competition from foreign firms

What are the four purposes of the United Nations according to its charter?

1. Develop friendly relations among the nations 2. Cooperate in solving international problems 3. Maintain international peace and security 4. Be a center for harmonizing the actions of nations

The G20 was originally established to ___________.

Formulate a coordinated policy response to financial crisis in developing countries

The development of the microprocessor has lead to _______________.

A reduction in the cost of global communications

What is an example of an obstacle to globalization?

Differences in legal regulations among national markets

In return for offering loans, the International Monetary Fund (IMF) ____________.

Enforces its economic policies on nations

True or false: small and medium size companies do not typically benefit from the globalization of markets.

False

What are three examples of factors of production?

Land, labor, capital

Some US hospitals outsource radiology work to India. This is a recent advancement that is possible because of advancements in ______________.

Technology

Which of the following statements is true about the International Monetary Fund (IMF)?

The IMF is often seen as the lender of last resort to nation-states whose economies are in turmoil

Historically, national markets were distinct and separate entities. Today, these separate national markets have merged. This process is known as ___________________.

The globalization of markets

Company XYZ, based in Idaho, sources goods from Southeast Asia to take advantage of labor cost savings. This is an example of ______________.

The globalization of production

Which of the following describes the impact of existing impediments to globalization?

The impediments make it difficult for companies to maximize production activities

Which of the following organizations is responsible for policing of trade between nations And making sure countries adhere to the rules of trade treaties?

World trade organization