APEX Econ 6.1: It's a Small World

Categories: World
Globalization creates greater what?
Interconnections among the people and economies of the world

The increasing interconnectedness of peoples and countries around the world is known as what?
Globalization

The process of globalization involves an increase in what?
The mobility of goods, services, labor, and capital

Which of these is required for specialization to take place?
A division of labor

The division of labor among workers or countries enables what?
Specialization

When tasks in an economy are specialized, which of the following exists?
Division of labor

Specialization in the global economy is restricted by what?
Protective tariffs

What limits specialization in the global economy?
Trade barriers

Increasing specialization within the global economy depends on what?
International trade

When does one country have an absolute advantage over another country?
When its production costs are lower

When does one country have a comparative advantage over another country?
When the opportunity cost of its production is lower

When might a country specialize in producing a particular good?
When it has an absolute advantage in production of that good

Match each of the terms below with its definition.


A. Absolute advantage
B. Comparative advantage
C. Opportunity cost
D. Protectionism

A. The ability to produce more cheaply
B. The existence of lower opportunity costs than competitors
C. The best alternative given up by a particular production decision
D. The existence of barriers to free-flowing trade

Match each of the terms below with its definition.
A. Absolute advantage
B. Comparative advantage
C. Specialization
D. Interdependence
A. The ability to produce more cheaply
B. The existence of lower opportunity costs than competitors
C. The performance of a particular productive task within an economic system
D. The tight connection between different countries’ economies

Match each of the terms below with its definition.
A. Absolute advantage
B. Comparative advantage
C. Specialization
D. Protectionism
A. The ability to produce more cheaply
B. The existence of lower opportunity costs than competitors
C. The performance of a particular productive task within an economic system
D. The existence of barriers to free-flowing trade

What is one of the benefits of increasing economic interdependence?
Greater economic growth

What is one of the downsides of increasing economic interdependence?
Loss of control over the national economy

What effect does increasing economic interdependence have on the countries of the world?
Growing international trade and rising standards of living

Which of the following was not an economic effect of colonization?
Global economic development

During the period of colonization, developed countries did what?
Extracted resources from their colonies

What was the relationship between colonizing countries and their colonies?
The colonizers used the resources of their colonies to grow their own economies

Which of the following does not promote greater international trade?
Higher tax and tariff levels

Which of the following does not promote increased international trade and economic growth?
High tariffs

Which of these is an important factor promoting increased international trade?
The reduction of trade barriers

Match each current trend in the global economy with one of its economic effects.
A. Increased communication
B. Trade Liberalization
C. Infrastructure development
D. Industrialization
A. Outsourcing in the high-tech industry
B. Greater mobility of goods and labor
C. Improved production and transportation
D. Economic growth in developing countries

Match each current trend with one of its effects on international trade.
A. Improved communication
B. Trade Liberalization
C. Infrastructure development
D. Industrialization
A. Broadening of international trade
B. Reduction of barriers to international trade
C. Facilitation of smoother international trade
D. Spread of international trade to developing countries

Match each current trend with the advantage it provides for the global economy.
A. Improved communication
B. Reduction of trade barriers
C. Development of infrastructure
D. Industrialization
A. Facilitates international business and trade
B. Allows for a greater mobility of goods and labor
C. Reduces production and transportation costs
D. Enables economic growth in developing countries

What is one negative effect of current patterns in global trade?
Job loss and wage decreases in developed countries

What is one of the drawbacks to globalization?
Countries and businesses must reduce wages paid to workers in order to attract foreign investment

What is one of the benefits of the current pattern of global trade?
Consumers pay lower prices for goods and services

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APEX Econ 6.1: It's a Small World. (2018, Jan 05). Retrieved from https://studymoose.com/apex-econ-6-1-its-a-small-world-essay

APEX Econ 6.1: It's a Small World

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