APEX Econ 6.3: The Challenges of Globalization – Flashcards
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Which of the following is not a hazard of globalization?
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Increased prices
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Globalization can lead to radically unequal economic growth because of what?
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An unequal distribution of economic power
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Why do globalization and increasing interdependence pose risks to the global economy?
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Disruptions in one place have effects everywhere
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Which of these has occurred during the most recent period of globalization?
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The income gap between rich and poor countries has widened
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What is one of the negative effects of globalization?
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An increasing income gap between rich and poor countries
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The most recent period of globalization increased the global GDP at the same time it did what else?
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Widened the income gap between rich and poor countries
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Which of the following characterizes developing countries?
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A low standard of living
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What is the main difference between developed countries and developing countries?
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The income level and standard of living
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Which of these is the largest difference between developed and developing countries?
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The level of wealth
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What is true of the majority of the world's countries today?
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They are left on the margins of globalization
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Which two countries are the biggest and most successful of the "new globalizers"?
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China and India
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What has happened recently in the group of countries known as the "new globalizers"?
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There has been a dramatic increase in international trade
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What is the main reason why some developing countries fear the increase of free-trade policies around the world?
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Their industries are too weak to compete with foreign competitors
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Why have many developing countries failed to benefit from the spread of free trade around the world?
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Developed countries continue to maintain high tariffs on the agricultural goods that developing countries export in large numbers
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How do developed countries maintain an advantage over developing countries in international trade?
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They maintain high tariffs on the agricultural goods that many developing countries export
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Globalization has increased which of the following throughout the world?
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The migration of workers
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What has contributed to the increase in labor migration during the recent period of globalization?
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Workers are going to developed countries in search of better-paying jobs
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What is happening in the information technology sector of the global economy?
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Many information technology jobs are shifting from developed countries to the new globalizers
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Why does globalization contribute to the rise of international terrorism?
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Globalization has resulted in turmoil and dislocation for many people around the world
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Why has globalization enabled countries that abuse human rights to continue to do so?
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Companies taking advantage of low labor costs don't make trouble for repressive governments
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Why has globalization resulted in increasing environmental damage around the world?
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The profit motive drives companies that are competing in the global marketplace to exploit natural resources
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Match each of the global business practices with an example of its use. A. Offshoring B. Outsourcing C. Insourcing
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A. A U.S. car company begins making certain car parts in Bangladesh. B. A U.S. car company hires a South Korean company to make its tires. C. A Japanese car company opens a factory in the United States.
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Match each of the global business practices with an example of its use. A. Offshoring B. Outsourcing C. Insourcing
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A. A Brazilian clothing company opens a factory in Indonesia to take advantage of lower labor costs. B. A U.S. clothing company buys shirts and pants from a clothing manufacturer in Turkey. C. A Mexican clothing company opens a textile mill in the United States where it sells most of its products.
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Match each of the global business practices with an example of its use. A. Offshoring B. Outsourcing C. Insourcing
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A. A U.S. computer company begins making its monitors in China. B. A Canadian computer company hires an Indian company to handle its customer service calls. C. A European computer company opens a factory in the United States where it sells most of its computers.
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Why does the U.S. textile industry lose jobs to foreign countries?
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Cheap imports can force U.S. companies out of business
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Which of these is most directly responsible for job loss in the United States?
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Cheap imported goods
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Why do lower labor costs in other countries lead to job loss in the United States?
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Lower labor costs enable producers to export inexpensive products to the United States
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How do people in the United States benefit from globalization?
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Economic growth
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How does globalization hurt the United States economy?
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By bringing wage reductions
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Which of these is a problem that globalization poses for the U.S. government?
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Increased security concerns
