Economic Globalization Instruction/Quiz

As economies grow, they demand more

raw materials

Which factor is likely to be of concern in a developed nation in the twenty-first century? low GDP slowing economic growth populations that are growing too quickly labor shortages in manufacturing

slowing economic growth

What are the purposes of international economic organizations? Select three options.

1, 3, 5 to resolve trade disputes to promote fair and successful trade to encourage trade in developing countries

Which statements best describe how businesses can take advantage of globalization? Select all that apply. using lower labor costs in other countries creating higher barriers to trade transporting resources quickly from distant locations limiting trade with other countries communicating more quickly with other countries

A, C E

What most likely caused the steady increase in price per barrel of oil between 2001 and 2008?

demand from developing countries

Match each organizing with its mission and purpose

EUROPEAN UNION - established a common market and a common currency ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES-sets oil production and prices for member nations BORTH AMERICAN FREE TRADE AGREEMENT -encourages exchange of goods and services among member nations WORLD TRADE ORGANIZATIONS- promote commerce and resolves commerce-related disputes

How has the Internet improved business communication worldwide? Select three options.

It allows for instant communication. It enables people to monitor economic trends. It makes it possible to buy and sell instantly.

Match each word or term with its correct definition. Interdependence Multinational corporation Outsourcing Globalization Interdependence

Multinational Corporation- A company that has business operations in several countries Interdependence- The relationship in which National economies rely on each other Globalization- the process through which nations exchange products and ideas Outsourcing- Cutting labor costs by employing workers in a foreign country Integrate- Combine parts into a whole

In 2010, the United States exported more to Mexico than it imported. As a result of NAFTA, US exports to Mexico have declined. NAFTA has boosted the US economy at the expense of Mexico's. Trade with Mexico increased following the passage of NAFTA. Which statement is supported by the information presented in the graph?

Trade with Mexico increased following the passage of NAFTA.

n countries such as China, globalization has led to

a better standard of living.

Trade blocs help countries by

allowing the pooling of resources.

NAFTA can be defined as

an agreement between bordering nations.

Why do companies choose to outsource work?

increase profits

A multinational organization is defined as a business that

operates in multiple countries.

What is the primary purpose of the European Union?

to allow more trade between countries