Int. ECON P1

what is the meaning of globalization? What is its advantage and disadvantage? why is there an anti globalization movement?

Globalization refers to the openness and the free exchange of goods, services, resources and technologies, capital and ideas around the world globalization is important because it increases efficiency; it is inevitable because international competition requires it. the anti-globalization movement blames globalization for increased world poverty and income inequalities, child labor, environmental problems, etc.

the ratio between a country's imports and exports of goods or services to their gross domestic product (GDP) is a measure of that country's:

Openness as an economy and economic interdependence

Why does the US rely less on international trade than most other developed nations?

The US relies less on international trade for its high standard of living compared to other developed nations because it is continental size with immense natural and human resources. As such, it can produce with relative efficiency most of the products it needs. Contrast to the position of a small nation such as switzerland which can specialize and export only a a small range of commodities and imports all the others. In general the larger the nation the smaller its economic interdependence

how can we get a rough measure of the economic interdependence of each nation with the rest of the world?

a rough measure of the degree of economic interdependence of a nation with the rest of the world is given by the ratio or percentage of its exports plus imports to its GDP

the economic relationship and integration among nations is defined as

economic interdependence

what would happen to the US standard of living if the US withdrew completely from international trade?

even though the U.S> relies only to a relatively small extent on international trade, a significant part of its high standard of living depends on it. the u.s. must import many commodities that it can't produce on its own. more important quantitatively to its economic well-being. however, are the many commodities that could product domestically but at a higher cost.

In many developing nations, _______ provide employment opportunities and _________ to pay for the many products that cannot be produced in the home country.

exports, earnings

The increasing integration of economies around the world, particularly through trade and financial flows is:

globalization

when interest rates increase in the Eurozone, capital flows from abroad will

increase

the economic interdependence among nations has ________ over recent history.

increased

with respect to international trade in the real world:

most nations impose some restrictions limiting the free flow of goods

how do international economic relations differ from interregional (within a country) economic relations?

nations often impose restrictions on free international flow of goods, services and factors. Differences in language, customs and laws also hamper these international flows. In addition, international flows of goods, services and resources may involve receipts payments in different currencies, which may change in value in relation to one another through time. International relations are to be contrasted with interregional relations, which face no such restrictions as tariffs and are conduced in the same currency, usually same language, and same laws

trade restrictions usually benefit a large majority of the ______ in the nation at the expense of a silent majority of _______.

producers, consumers

a nation that has an open economy

trades with other nations

_______ has grown at a faster rate than _____, indicating an increase in economic interdependence among nations.

world trade, world production