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Economics

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Tom Schmidt

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Cards in this guide (17)
What is the purpose of the loans made by the World Bank

To promote sustainable development

What does the giving of foreign aid involve

A gift of money from one government to another government

How does the WTO promote global free trade

By creating multilnational trade agreements

MULTILATERAL... not multinational.

Why does globalization lead to a reduction in wages in developed countries

Increased mobility allows producers to move jobs to lower-cost labor markets.

What does the World Bank hope will result from the loans it makes to developing countries

An improved climate for foreign investment

Country X would enjoy an absolute advantage in the production of clothing under what circumstance

Its production costs for clothing were the lowest in the world.

Globalization creates greater what

Interconnections among the people and economies of the world

How do flexible expenses differ from fixed expenses

Flexible expenses vary over time.

Why do the actions of central banks have an important effect on the global economy

Control of the money supply determines how much money is available for international trade.

Because most developing countries have weak domestic industries they do not benefit from what

Free-trade policies

Which of these results from greater capital mobility

Increased foreign investment.

Why are the majority of the worlds countries left on the margins of globalization

many countries are too underdeveloped to take advantage of the oppurtunities presented by increasing international rate.

What has been the main drawback of globalization for the United states

Competition with lower wages and jobs leaving the country are some of the major drawbacks of globalization.

Globalization has increased following throughout the world

the migration of workers

What time is Churchill most clearly using

I cannot answer this question.

Match each organization with its correct relationship to the government

A. Social security _ government agency

B. U.S. Postal Service _ government corporation

C. Boeing _ government contractor

Match each type of unfair business practice with its description (apex)

1.Vendor lock in: a company say a wide range of product can be used with its products but this is not true.

  1. Price fixing: a group of companies agree that all of them will charge the same price.

3.Predatory pricing: a large company charges a price below production cost in order to eliminate small competitors.

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