MANA 1301-005 Exam 1 (Chapter 1-4)
What is Globalization? - answer the socioeconomic reforms process of eliminating
trade, investment, cultural, information technology, and political barriers across
countries
Goal of globalization? - answer increased economic growth and geopolitical integration
and interdependence among nations
When did globalization occur? - answer can be traced back to the 15th century, but
picked up after WWII, beginning in 1944 with the creation of international institutions
Why did globalization occur? - answer Rebuild the broken world financial and trade
systems that could help lead to global peace and prosperity
4 Reasons for Globalization growth - answer1. Technology
2. Population Growth
3. Formation of Global Trade Organizations
4. Business enterprise growth/cost efficiency desire
Benefits of Globalization - answer· Increase global competition
· Growth of multiple country economies
· Lifted countries out of poverty/raised living standards
· More choices for consumers - pricing power
· Improved cultural awareness
· Better institutional structures
Costs of Globalization - answer· job loss/income stagnation
· environmental exploitation
· over reliance on foreign production - national security
What are the 3 major "world" organizations? Where did they originate from? - answer1.
International Monetary Fund (IMF)
2. World Bank
3. General Agreement on Tariffs and Trade (GATT)/World Trade Organization (WTO)
They originated from the Bretton Woods Conference
International Monetary Fund (IMF) functions - answer- currency stabilization
- provide forum for cooperation on international monetary problems
- facilitates international trade that promotes new jobs, economic growth, and poverty
reduction
- promote exchange rate stability
, - lends countries foreign exchange when needed
World Bank Functions - answer- economic development
- eliminate poverty
- global integration through trade liberalization and expansion
- analysis and national trading policy advice
- information/knowledge transfer to developing countries
World Bank Institutions - answer- IBRD
- IDA
- IFC
- MIGA
- ICSID
GATT/WTO functions - answer- administering trade agreements
- forum for trade negotiations
- settle trade disputes
- review national trade policies
Principles of Multilateral Trade - answer- trade without discrimination
- increasingly freer trade
- predictability of trading relationships
- fair competition
- encouragement of economic reforms in developing countries
De-coupling - answercountries growing based on their own strengths; less reliance on
other country's economies
a sustainable decoupling process would lead to... - answercreation of multipolar world
Multipolar World - answera world economy in which the engines of growth could
comprise several major industrialized and emerging economies, such as the United
States, the European Union, China, India, Brazil, Russia, and South Africa rather than
the United States alone
Exports - answervalue of goods/services SOLD to another country
Imports - answervalue of goods/services BOUGHT from another country
Gross Domestic Product (GDP) - answerthe value of goods and services produced
within a country in a year
The 3 largest forces on Earth - answer1. Moore's Law
2. Market
3. Mother Nature
What is Globalization? - answer the socioeconomic reforms process of eliminating
trade, investment, cultural, information technology, and political barriers across
countries
Goal of globalization? - answer increased economic growth and geopolitical integration
and interdependence among nations
When did globalization occur? - answer can be traced back to the 15th century, but
picked up after WWII, beginning in 1944 with the creation of international institutions
Why did globalization occur? - answer Rebuild the broken world financial and trade
systems that could help lead to global peace and prosperity
4 Reasons for Globalization growth - answer1. Technology
2. Population Growth
3. Formation of Global Trade Organizations
4. Business enterprise growth/cost efficiency desire
Benefits of Globalization - answer· Increase global competition
· Growth of multiple country economies
· Lifted countries out of poverty/raised living standards
· More choices for consumers - pricing power
· Improved cultural awareness
· Better institutional structures
Costs of Globalization - answer· job loss/income stagnation
· environmental exploitation
· over reliance on foreign production - national security
What are the 3 major "world" organizations? Where did they originate from? - answer1.
International Monetary Fund (IMF)
2. World Bank
3. General Agreement on Tariffs and Trade (GATT)/World Trade Organization (WTO)
They originated from the Bretton Woods Conference
International Monetary Fund (IMF) functions - answer- currency stabilization
- provide forum for cooperation on international monetary problems
- facilitates international trade that promotes new jobs, economic growth, and poverty
reduction
- promote exchange rate stability
, - lends countries foreign exchange when needed
World Bank Functions - answer- economic development
- eliminate poverty
- global integration through trade liberalization and expansion
- analysis and national trading policy advice
- information/knowledge transfer to developing countries
World Bank Institutions - answer- IBRD
- IDA
- IFC
- MIGA
- ICSID
GATT/WTO functions - answer- administering trade agreements
- forum for trade negotiations
- settle trade disputes
- review national trade policies
Principles of Multilateral Trade - answer- trade without discrimination
- increasingly freer trade
- predictability of trading relationships
- fair competition
- encouragement of economic reforms in developing countries
De-coupling - answercountries growing based on their own strengths; less reliance on
other country's economies
a sustainable decoupling process would lead to... - answercreation of multipolar world
Multipolar World - answera world economy in which the engines of growth could
comprise several major industrialized and emerging economies, such as the United
States, the European Union, China, India, Brazil, Russia, and South Africa rather than
the United States alone
Exports - answervalue of goods/services SOLD to another country
Imports - answervalue of goods/services BOUGHT from another country
Gross Domestic Product (GDP) - answerthe value of goods and services produced
within a country in a year
The 3 largest forces on Earth - answer1. Moore's Law
2. Market
3. Mother Nature
