America and the Global Economy – Flashcards
Unlock all answers in this set
Unlock answersquestion
What triggered the financial crisis of 2008 in the United States?
answer
American housing prices dropped.
question
What would most Americans see as a disadvantage of globalization?
answer
Jobs move to cheaper labor markets.
question
A multinational corporation is a company that
answer
operates branches in more than one country.
question
The main reason the US automotive industry survived the financial crisis of 2008 was that it
answer
received government loans.
question
To receive a loan from the IMF, a country must
answer
agree to make economic reforms.
question
International economic organizations try to help the global economy by
answer
managing competition between nations.
question
Poverty reduction is the main goal of the
answer
World Bank.
question
The main idea of globalization is that
answer
the economies of the nations of the world are closely linked.
question
Which two auto companies received help from the US government during the crisis of 2008?
answer
GM and Chrysler
question
Which of the following is the best definition of globalization?
answer
the growing interconnection of the world's many economies
question
Which of the following best explains why the pace of globalization has increased dramatically in recent years?
answer
People have increased their demand for foreign goods.
Technology has greatly enhanced the ability to share information around the world.
question
Which of these reasons explain why a company might choose to hire a workforce in another country?
answer
to lower labor costs
to gain access to specialized skills the company needs
question
Which of the following are potential benefits of global competition?
answer
lower prices for consumers
more jobs for workers in countries with low labor costs
question
Which of the following are potential problems caused by global competition?
answer
Companies in high-wage countries may be driven out of business.
Workers in high-wage countries may lose their jobs.
question
Why would a nation bring a case before the World Trade Organization?
answer
to settle a trade dispute with another country
question
Which of the following best describes the G20?
answer
The G20 is an organization representing the world's largest economies.
question
When was the World Bank created?
answer
1944
question
What was the initial purpose of the World Bank?
answer
to help rebuild Europe following WWII
question
How does the World Bank receive its funding?
answer
donations from the world's wealthiest countries
question
What does the World Bank do with its funds?
answer
gives interest-free loans to struggling nations
provides technical assistance to war-damaged countries
question
Which of the following are stated goals of the G20?
answer
discussing global economic cooperation
responding to global economic crises
question
Why does President George W. Bush state that he cannot allow the auto industry to collapse?
answer
The collapse of a major industry would make the recession worse.
question
How high did median home prices rise between 1998 and the peak in 2007?
answer
$100,000
