GSCM 211 MIDTERM REVIEW QUESTIONS
AND 100% VERIFIED ANSWERS
\.Bretton Woods System - ANSWERS✔-foundation of the majority of world trade
since 1944
- created financial and commodity interdependence
- US dollar as the main trading currency
- Tariffs reduced or eliminated
\.comparative advantage - ANSWERS✔-producing goods and services at a lower
opportunity cost
\.Globalization - ANSWERS✔-Extension of the make or buy decision beyond
national borders. Interconnectedness and interdependence of peoples and
countries.
\.Globalization pros - ANSWERS✔-- increased awareness of other cultures and
countries
- encourages innovation (increased automation- less labor required for
manufacturing)
- income of low cost labor in developing countries has increased
- developing countries have increased access to first-world products
, \.Globalization cons - ANSWERS✔-- unequal opportunities across the world
- the world's wealth is increasingly concentrated (rich getting richer)
- globalization strategy is poorly managed (damage of the environment)
\.David Ricardo - ANSWERS✔-Founder of basic concept of international trade
theory- comparative cost
\.Thomas Friedman - ANSWERS✔-the world has moved from period of being
round (where trade barriers are high) to period of being flat (where barriers to
trade are low)
\.Milton Friedman - ANSWERS✔-North America will prosper as it opens its borders
\.Protectionism - ANSWERS✔-Taxing imports to protect a country's domestic
industries from international competition
\.Mercantilism - ANSWERS✔-Countries centrally controlling trade so that they
export more than they import
\.European Union - ANSWERS✔-The EU is probably the most famous of these
trading blocs, where non-tariff barriers to trade have been collectively removed by
member nations. The EU now has 27 members and was originally inspired by a
small open borders trading union between Belgium, The Netherlands, and
Luxembourg.
AND 100% VERIFIED ANSWERS
\.Bretton Woods System - ANSWERS✔-foundation of the majority of world trade
since 1944
- created financial and commodity interdependence
- US dollar as the main trading currency
- Tariffs reduced or eliminated
\.comparative advantage - ANSWERS✔-producing goods and services at a lower
opportunity cost
\.Globalization - ANSWERS✔-Extension of the make or buy decision beyond
national borders. Interconnectedness and interdependence of peoples and
countries.
\.Globalization pros - ANSWERS✔-- increased awareness of other cultures and
countries
- encourages innovation (increased automation- less labor required for
manufacturing)
- income of low cost labor in developing countries has increased
- developing countries have increased access to first-world products
, \.Globalization cons - ANSWERS✔-- unequal opportunities across the world
- the world's wealth is increasingly concentrated (rich getting richer)
- globalization strategy is poorly managed (damage of the environment)
\.David Ricardo - ANSWERS✔-Founder of basic concept of international trade
theory- comparative cost
\.Thomas Friedman - ANSWERS✔-the world has moved from period of being
round (where trade barriers are high) to period of being flat (where barriers to
trade are low)
\.Milton Friedman - ANSWERS✔-North America will prosper as it opens its borders
\.Protectionism - ANSWERS✔-Taxing imports to protect a country's domestic
industries from international competition
\.Mercantilism - ANSWERS✔-Countries centrally controlling trade so that they
export more than they import
\.European Union - ANSWERS✔-The EU is probably the most famous of these
trading blocs, where non-tariff barriers to trade have been collectively removed by
member nations. The EU now has 27 members and was originally inspired by a
small open borders trading union between Belgium, The Netherlands, and
Luxembourg.
