Chapter 7 Topic Review – Flashcards
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The World Bank is made up of which of the following institutions?
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II. and III. only
(the International Bank for Reconstruction and Development (IBRD) & the International Development Association (IDA)
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How do "global teens" differ from teens of other generations as a result of commoditization?
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Teens, whether in America or Thailand, have access to the same pop culture.
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Which of the following statements about quotas in the International Monetary Fund (IMF) is false?
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The US and Japan are the only countries with enough votes to block certain decisions single-handedly
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Why is it difficult to turn strong brands into commodities?
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A well-established brand more easily resists commoditization because of its reputation, value, innovation, and consumer trust.
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Which of the following statements about the World Bank is false?
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The World Bank accepts deposits and makes loans for corporations, countries, and individuals around the world.
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Describe the purpose and goals behind the concept of global lending. What are some criticisms of global lending institutions?
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The purpose and goals behind global lending are to eliminate poverty and reduce monetary problems that interfere with world trade. Global lenders do this in a variety of ways. They track global performance trends, alert members to potential crisis situations, provide loans and project guidance for struggling economies, and target ways to eliminate poverty. One criticism of the global lending process is that the process may hurt countries more than it helps them. Opponents argue that loan terms are unreasonable and actually keep borrowing countries in debt. Some say that these loans infringe on nations' autonomy, as lenders dictate terms. Others argue that project and analysis efforts are wasted because poverty has not been eliminated. Lending may be too little and too late to avert a crisis.
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Mohammad Yunus is best known for __________.
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initiating a banking system focused on microcredit loans
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One of the main goals of international economic organizations is to
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promote and regulate trade between nations.
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When a country joins the International Monetary Fund, it is assigned a(n) __________ based on the size of its __________.
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quota & economy
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Which of the following organizations emerged from a conference held to provide a framework for global economic cooperation after World War
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the IMF and the World Bank
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Which of the following statements about global poverty are TRUE?
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1.Nearly two-thirds of Africans live in poverty.
2. Over half of the population of South Asia lives in poverty.
3. Impoverished living conditions lead to the deaths of millions of children each year.
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How does commoditization impact the choices people make when shopping?
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With standardized products, the cost of the product becomes the main deciding factor.
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Which two international organizations most help developing countries?
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the IMF and the World Bank
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A dispute between two countries about tariffs would most likely be settled by the
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WTO.
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Using complete sentences, compare and contrast the ways that commoditization helps and hurts consumers.
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Commoditization helps consumers who want goods and services without guesswork and the lowest possible price. Since commoditization dominates the global economy, companies compete to create virtually identical products while providing them at the lowest price. Commoditization hurts consumers who want a wide variety of features and selections from which to choose. They might be able to cheaply purchase an item, but it might not be specialized to their liking.
