6.02 Its a Small World – Flashcards
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The increasing interconnectedness of peoples and countries around the world is known as ____________.
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globalization
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Which of these is required for specialization to take place?
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a division of labor
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What limits specialization in the global economy?
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trade barriers
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In which situation might a country specialize in producing a particular good?
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an absolute advantage in production of that good
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Which describes comparative advantage?
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existence of lower opportunity costs than competitors
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What effect does increasing economic interdependence have on the countries of the world?
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growing international trade and rising standards of living
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What was the relationship between colonizing countries and their colonies?
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The colonizers used the resources of their colonies to grow their own economies.
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Which of the following does not promote increased international trade and economic growth?
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high tariffs
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Which is a result of improved communication systems?
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outsourcing in the high-tech industry
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What is one of the drawbacks to globalization?
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Countries and businesses must reduce wages paid to workers in order to attract foreign investment.
