(P) L2: The Global Economy (Book-based)

Question 1

Defined as the historical process, result of human innovation

Answer 1

Economic globalization

Question 2

Other names for economic globalization

Answer 2

Global economy/World economy

Question 3

Shangquan (2000) attributes this to cross-border trades, flow of capital, and wide/rapid spread of technology

Answer 3

Economic globalization

Question 4

Definition of Economic globalization as the historic process, result of human innovation is given by whom?

Answer 4

International Monetary Fund (2008)

Question 5

Cross-border trading can be best illustrated by partnership with which countries?

Answer 5

China, Australia, US

Question 6

The flow of international capital can be observed in what?

Answer 6

Foreign direct investment (FDI)

Question 7

Defined as the type of investment in which a company establishes a business in another country

Answer 7

FDI

Question 8

The corporation as good example of having FDI stated in the book?

Answer 8

Toyota Motor Philippines

Question 9

It refers to the increasing integration of economies around the world, particularly through the movement of goods, services, and capital across borders

Answer 9

Economic Globalization

Question 10

Economic Globalization refers to the increasing integration of economies around the world, particularly through the movement of goods, services, and capital across borders

This definition is given by whom/which organization?

Answer 10

International Monetary Fund (2008)

Question 11

Econ globalization can be traced from the time when there was economic movement in Asia, Africa, and Europe through what?

Answer 11

Silk road

Question 12

Silk Road connected which places?

Answer 12

East (particularly China) and the West

Question 13

Who identifies four interconnected dimensions of the `economy?

Answer 13

Benczes (2014)

Question 14

What are the four dimensions of the economy?

Answer 14

1. Globalization of trade of goods and services
2. Globalization of financial and capital markets
3. Globalization of technology and communication
4. Globalization of products

Question 15

The globalization of trade of goods and services is demonstrated in the establishment of which organization?

Answer 15

World Trade Organization (1995)

Question 16

Which country emerged as the major supplier and exporter of manufactured goods in the context of globalization of trade of goods and services?

Answer 16

China

Question 17

Increasing number of business process outsourcing refers` to which dimension of economy?

Answer 17

Trade of good and services

Question 18

Cross-listing of shares on one or more foreign stock exchange, cross heading and diversification of portfolio, round the clock trading worldwide refer to which dimension of economy?

Answer 18

Financial and capital markets

Question 19

Various transactions and interactivities that transpire due to the internet and communication technology refer to which dimension of the economy?

Answer 19

Technology and communication

Question 20

Existence of MNCs and TNCs are manifestation of which dimension of the economy?

Answer 20

Product

Question 21

Whose definition of economic globalization is the most fitting?

Answer 21

Szentes’

Question 22

T or F: The world economy is no longer controlled by the nation-states but must be seen from a global context

Answer 22

True

Question 22

Refers to making the world economy an organic system by extending transnational economic processes and relations to more and more countries

Answer 22

Economic globalization

Question 23

T or F: Price movement is only affected by the Tax Reform for Acceleration and Inclusions

Answer 23

False (also affected by the peso-US dollar exchange which is affected by the global market)

Question 24

What are the two international economy's interest rate that affect the global market?

Answer 24

European Union (EU) and United States Federal Government's interest rate

Question 25

What are the two actors that facilitate economic globalization?

Answer 25

Nation-states and Global corporations

Question 26

T or F: Globalization does not have any effect on the nation-states' role as managers of the national economy

Answer 26

False (it redefines it)

Question 27

Which acts as a buffer to the negative effects of globalization?

Answer 27

Nation-states

Question 28

Who describes the government as the midwives?

Answer 28

Brodie, 1996

Question 29

T or F: Nation-states are still relevant in assuming a global perspective and act as mediators between the effects of globalization and national economy

Answer 29

True

Question 30

According to this person, nation-states ceased to exist as the primary economic organization unit in the global market

Answer 30

Ohmae, 1995

Question 31

Because of this, national products, technology, and corporations become obsolete

Answer 31

Global corporations

Question 32

Example of MNCs in context of globalization of product

Answer 32

Coca-Cola Company and Toyota Motor Corporation

Question 33

These corporations have expanded outside their home country and become the main driving force of economic globalization accounting for 2/3rds of the world exports (Gereffi, 2005)

Answer 33

San Miguel Corp and Jollibee Foods Corp

Question 34

This corporation only manufactures syrup concentrates and sells them to different countries

Answer 34

Coca-Cola company

Question 35

This corporation has subsidiaries in Japan and other parts of the world

Answer 35

Toyota Motor Corp

Question 36

When did Toyota started selling millions of vehicles?

Answer 36

1998

Question 37

This is one of the actors that facilitate economic globalization; internationally agrees rules, conventions, and institutions for facilitating international trade, investments, and flow of capital

Answer 37

International Monetary System (IMS)

Question 38

What are the three global IMS?

Answer 38

1. Gold standard 2. Bretton Woods System 3. European Monetary System (EMS)

Question 39

This IMS functions as a fixed exchange rate regime with gold as the only reserve

Answer 39

Gold standard

Question 40

This IMS has US dollar as the only convertible currency

Answer 40

Bretton Woods System

Question 41

T or F: The countries agreed to adopt the dollar-exchange standard

Answer 41

False (gold-exchange)

Question 42

International Bank for Reconstruction and Development is now known as what?

Answer 42

World Bank

Question 43

This bank is responsible for post-war reconstruction

Answer 43

World Bank

Question 44

This aims to promote international financial cooperation and strengthen international trade

Answer 44

IMF

Question 45

This IMS came about after the collapse of the Bretton Wood System

Answer 45

European Monetary System (EMS)

Question 46

This IMS was successful in stabilization process of exchange rate

Answer 46

European Monetary System

Question 47

This IMS promoted the establishment of European Economic and Monetary Union (EMU)

Answer 47

EMS

Question 48

T or F: Restricting flow of goods might affect the relationship between states

Answer 48

True

Question 49

T or F: According to WB, economic globalization does not have any effect to poverty

Answer 49

False (it reduces it)

Question 50

T or F: Econ globalization allows only local distribution of incomes

Answer 50

False (worldwide distribution)

Question 51

T or F: Economic globalization creates mutual independence between developing an developed countries

Answer 51

False (mutual dependence)

Question 52

T or F: Econ globalization unites the world as the sources of goods and services are exploited

Answer 52

False teh

Question 53

T or F: Econ globalization benefits all nation

Answer 53

False

Question 54

T or F: Economic globalization creates inequality according to expertise, experience, and skills

Answer 54

True

Question 55

When was WTO established?

Answer 55

1995