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SS1D > Lesson 4: Global Economy And Economic Systems > Flashcards

Lesson 4: Global Economy And Economic Systems Flashcards

1
Q

It refers to the economic activities and interaction of countries.

A

Global economy

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2
Q

What are some of the advantages of the global economy?

A
  • creates economic growth opportunities
  • trade of goods and services
  • increased competition = innovation
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3
Q

Systems, rules, institutions that govern how goods and services are distributed and consumed in a society.

A

Economic system

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4
Q

What are the 3 types of economic systems?

A
  1. Market economy
  2. Command economy
  3. Mixed economy
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5
Q

Market economy or also called a free market defined by the keyword?

A

Price

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6
Q

Command economy is similar to communism wherein…

A

The government controls the market

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7
Q

This economy is a mix of both market and command economy?

A

Mixed economy

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8
Q

This refers to the flow of goods and services between countries.

A

International trade

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9
Q

What are the two theories on trade?

A
  1. Descriptive trade
  2. Prescriptive trade
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10
Q

What are the 3 perspectives on international trade?

A
  1. Mercantilism
  2. Economic liberation
  3. Structuralism
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11
Q

Mercantilism views gold as?

A

Gold = wealth and power

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12
Q

Who is the Father of Economics?

A

Adam Smith

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13
Q

This perspective promotes free and unrestricted trade.

A

Economic liberation

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14
Q

Who thought of the law of comparative advantage?

A

David Ricardo

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15
Q

What perspective refers to Modern World Systems Theory?

A

Structuralism

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16
Q

Who thought of the World Systems Theory?

A

Immanuel Wallerstein

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17
Q

In World Systems Theory, this refers to the developed countries.

A

Core

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18
Q

In World Systems Theory, this refers to the semi-periphery.

A

Developing countries

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19
Q

In World Systems Theory, this refers to the least developed countries.

A

Periphery

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20
Q

Why do countries engage in international trade?

A
  1. Uses of capacity demand
  2. Cost reduction and increase of profit
  3. Cheaper supplies
  4. Addiction to product line
  5. Reduction of risks
  6. Foreign policy tool
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21
Q

These are a group of people that act as a single identity.

A

Transnational Corporations (TNC)

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22
Q

What are some examples of TNC?

A
  1. Apple
  2. Microsoft
  3. Coca-cola
  4. Nike
  5. Amazon
  6. Toyota
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23
Q

What is the difference between Transnational Corporations with Multinational Corporations?

A

In MNC, there is a home country. The decision is for us to make.

In TNC, they do not need permission to operate or make decisions.

24
Q

What are the characteristics of Transnational Corporations (TNC)?

A
  1. Giant size
  2. Varied activities
  3. Centralized control
  4. International markets
  5. International operations
  6. Technology
25
Q

What are the advantages of TNC?

A
  1. Boosts economic growth and development
  2. Job opportunities
  3. Greater availability
  4. More investments
  5. Greater profits
  6. Encourage international trade
26
Q

What are the disadvantages of TNC?

A
  1. Exploitation
  2. Environmental damage
27
Q

It is the combination of national economies into a larger economic region. It makes a more unified and competitive economic environment.

A

Market integration

28
Q

This pertains to no more taxes in importing and exporting.

A

Free trade area (FTA)

29
Q

This refers to taxes from another country to export and import.

A

Tariffs

30
Q

This refers to preventing exports to a certain country.

A

Embargo

31
Q

Commercial and financial penalties by countries to a certain country.

A

Economic sanction

32
Q

What are the countries under the Association of Southeast Asian Nations (ASEAN)?

A
  1. Philippines
  2. Indonesia
  3. Thailand
  4. Cambodia
  5. Laos
  6. Vietnam
  7. Singapore
  8. Myanmar
  9. Brunei
  10. Malaysia
33
Q

These are firms that violate international trade agreements also known as illegal trading.

A

Unfair trade

34
Q

What is an example of an unfair trade?

A

Black market

35
Q

These are institutions that facilitate and regulate economic interaction.

A

International economics institutions

36
Q

What are examples of international economic institutions?

A
  1. World Trade Organization (WTO)
  2. World Bank (WB)
  3. International Monetary Fund (IMF)
  4. European Union (EU)
37
Q

This international economic institution lends money to developing countries to help them grow their economies.

A

World Bank

38
Q

This international economic institution assesses if payments in the World Bank are accurate.

A

International Monetary Fund (IMF)

39
Q

This international economic institution ensures there is unity and freedom among countries.

A

European Union

40
Q

In the market economy, decision-making is placed upon ___________.

A

Private individuals

41
Q

Capitalism is under what economy?

A

Mixed economy

42
Q

EU is guided by its core values namely?

A
  1. Human dignity
  2. Freedom
  3. Democracy
  4. Equality
  5. Rule of law
  6. Human rights.
43
Q

What international economic institution is responsible as a venue for trade negotiations, for dispute settlement regarding trade problems, and review and assess national and international trade laws and policies.

A

World Trade Organization

44
Q

This international economic institution monitors exchange rates of countries and monetary foreign transactions.

A

International Monetary Fund (IMF)

45
Q

It is Europe’s most influential and
powerful body and is concerned with peace, value, and the well-being of citizens.

A

European Union

46
Q

In descriptive trade, it is based on the French idea that means “leave alone”?

A

Laissez faire

47
Q

It is a trade theory that views the government to have participation in trading problems.

A

Prescriptive theory

48
Q

Under this perspective on international trade, it flourished because of more exports than imports, exportation and importation of less high valued products, and colonial powers

A

Mercantilism

49
Q

True or False: In economic liberation, it explains the importance of free trade and what one country is good at or has resources to, they should focus on exporting that.

A

True

50
Q

Also called the International Bank for Reconstruction and Development
(IBRD), this international economic institution lends to developing countries.

A

World Bank

51
Q

What are the 4 economic institutions?

A
  1. WTO
  2. WB
  3. IMF
  4. EU
52
Q

The Association of Southeast Asian Nations (ASEAN) consists of the 10 countries?

A
  1. Brunei
  2. Laos
  3. Indonesia
  4. Malaysia
  5. Myanmar
  6. Philippines
  7. Singapore
  8. Thailand
  9. Cambodia
  10. Vietnam
53
Q

What are the 6 fundamental principles of ASEAN under Treaty of Amity and Cooperation in Southeast Asia (TAC) of 2976?

A
  1. Mutual respect for independence, sovereignty, equality, territorial integrity,
    and the national identity of all nations
  2. The right of every State to lead its national existence free from external
    interference, subversion or coercion
  3. Non-interference in the internal affairs
  4. Conflict resolution by peaceful manner
  5. Renunciation of the threat or use of force
  6. Effective cooperation among themselves
54
Q

The Asian Free Trade Area (AFTA) consists of?

A

Brunei
Indonesia
Malaysia
Philippine
Singapore

55
Q

WB is composed of 4 associated agencies namely?

A

a. International Development Association (IDA). This agency focuses on poor economies by providing financial assistance and loan
programs.

b. International Finance Corporation (IFC).

c. Multilateral Investment Guarantee Agency (MIGA).

d. International Settlement Centre of Investment Disputes (ISCID)

56
Q

What are the 3 main pillars of ASEAN?

A
  1. ASEAN Political-security Community
  2. ASEAN Economic Community
  3. ASEAN Socio-cultural Community

SS1D (9 decks)

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