Module 3 (The Globalization of Economic Relations)

Question 1

Imports > Exports

Answer 1

Trade Deficit

Question 2

Imports < Exports

Answer 2

Trade Surplus

Question 3

: Ability of country A to produce goods at a lower cost per unit than country B
: Country A produces a higher volume of goods witht he given amount of resources than country B.
: Considers the greater uantity of the production of goods.

Answer 3

Absolute Advantage

Question 4

: Ability of country A to produce goods at a lower opportunity cost than country B
: Country A produces goods better than country B with the same amount of resources
: Considers all factors of production during a specific period

Answer 4

Comparative Advantage

Question 5

3 most common trade barriers:

Answer 5

1. Tariff
2. Export subsidies
3. Quota

Question 6

Tax on imports

Answer 6

Tariff

Question 7

Government payments made to domestic firms to encourage exports

Answer 7

Export subsidies

Question 8

Limit on the quantity of imports
Mandatory or voluntary

Answer 8

Quota

Question 9

: Functional integration between internationally dispersed activities
: Transforms national economies into a global one
: Qualitative

Answer 9

Economic Globalization

Question 10

: Extension of economic activities of nation states across borders
: Increasing the enterprise of a local company in the international market
: Quantitative

Answer 10

Internationalization