Chapter 20

Question 1

Complementarity

Answer 1

the relationship between two places where one has a surplus and the other has a need

Question 2

Comparative advantage

Answer 2

When a country identifies the unique assets that it can provide for trade or profit

Question 3

Technological advances in..

Answer 3

Transportation and communication mean that consumers all over the world not only know about a wider range of products and services than ever before, they have the effective demand to purchase those things

Question 4

Tensions can rise when..

Answer 4

One side believes the other has an unfair advantage leading to unbalanced trade

Question 5

Trade war with China

Answer 5

We are buying more products than China is buying from us, leading to the US trying to put higher tariffs and higher prices on Chinese products to encourage buying American products

Question 6

Neolibralism

Answer 6

Trade policies that favor free market economics and privatization over governmental control

Question 7

Neoliberalism trade seeks..

Answer 7

to lower barriers (duties, taxes, tariffs) to make it easier to trade

Question 8

Supranational organizations for free trade

Answer 8

NAFTA (now USMCA) and the EU are the most widely know, but most countries all have their own ..FTA’s

Question 9

Where in the world can you trade for free

Answer 9

The EU, Mercosur (Some of the countries of South America), OPEC (Organization of petroleum exporting countries), WTO (World trade agreement)

Question 10

WTO goal

Answer 10

By creating more trade, it will generate more income, more jobs, will lift people out of poverty, and will help countries on their path to development

Question 11

Deindustralization

Answer 11

Loss of industrial activity in one region, usually because of relocation to developing countries with cheaper labor and low economic standards.

Question 12

Interdependance

Answer 12

the dependence of two or more people or things on each other

Question 13

Outsourcing

Answer 13

Moving jobs in manufacturing and production, as well as jobs in services, outside of an area or country in which the country in located

Question 14

Economic restructuring

Answer 14

Urban areas shift from manufacturing (industry and factories) to a service sector economic base

Question 15

Specialized jobs may..

Answer 15

Go to countries that have a comparative advantage in that job (Similar to how companies in the tech industry may go to silicon valley to earn street cred)

Question 16

Outsourcing and economic restructuring have..

Answer 16

Led to a decrease in jobs in core countries

Question 17

Many U.S companies have..

Answer 17

Moved their call centers over borders (Mexico), and overseas (India, Philippines)

Question 18

Most outsourced sectors

Answer 18

Textiles and microchip making

Question 19

Top competitive manufacturing countries

Answer 19

Malaysia, India, Thailand, Indonesia, and Vietnam

Question 20

Four Asian dragons

Answer 20

Taiwan, South Korea, Hong Kong, Shanghai

Question 21

Special Economic Zones (SEZ)

Answer 21

An area of a country where the business and trade laws are different from other regions of the country

Question 22

Why have SEZs?

Answer 22

To attract direct investment from multinational corporations

Question 23

Multinational corporation

Answer 23

A company that has business operations in at least one country other than its home country

Question 24

Free Trade Zone (FTZ)

Answer 24

Usually an area around an airport or seaport where items can be landed, stored, handled, manufactured, re-exported. Also, usually they’re tariff free and not subject to customs duty

Question 25

Export Processing Zone (EPZ)

Answer 25

Zones typically in developing countries that focus on manufacturing for export.

Question 26

International division of labor

Answer 26

A shift of manufacturing industries from developed countries to developing countries. Countries need a low cost location in order to manufacture and assemble products.

Question 27

Post-Fordism methods of production/Automation

Answer 27

Robots and computer systems replacing the human assembly line

Question 28

Multiplier effects

Answer 28

Additional economic opportunities that could be generated

Question 29

Multiplier effect examples

Answer 29

For example, a corporation establishing a new business to creat economic opprotunity and coffee shops/lunch places begin to open around there

Question 30

Economies of scale

Answer 30

Cost advantages reaped by companies when production becomes efficant. This can be achieved by increasing production and lowering costs

Question 31

Agglomeration

Answer 31

The clustering of similar industries in the same area

Question 32

Examples of agglomeration

Answer 32

Boston having the most prestigious hospitals, medical schools, physicians, and medical scientists in the world

Question 33

Just in time delivery

Answer 33

Companies receive raw materials or goods only as they need them for the production process, which reduces inventory costs

Question 34

Growth poles

Answer 34

Concentration of highly innovative and technically advanced industries

Question 35

Ecotourism

Answer 35

Tourism based in natural environments that are often environments that are threatened by industrialization or development

Question 36

Ecotourism helps to

Answer 36

Protect the environment in question while also providing jobs for the local population

Question 37

Sustainability

Answer 37

the use of the earth's renewable and nonrenewable natural resources in ways that ensure resource availability in the future

Question 38

10% of the GDP globally is made up of

Answer 38

Tourism