The Global Economy

Question 1

is a complex system of interrelated production, consumption, and exchange activities that ultimately determines how resources are allocated among all the participants. The production, consumption, and distribution of goods and services combine to fulfill the needs of those living and operating within the economy.

Answer 1

Economy

Question 2

is the study of how people allocate scarce resources for production, distribution, and consumption, both individually and collectively.

Answer 2

Economics

Question 3

is the intensification and stretching of economic interrelations around the globe.

Answer 3

Economic Globalization

Question 4

Economies around the world are already showing various spots of ____________ and it is all attributed to the integration of economies around the world as a result of globalization.

Answer 4

homogeneity

Question 5

Itis a process that refers to corporate expansion by consolidating additional marketing functions and activities within asingle management framework. It shows the company’s market relationship, and its extent affects the company’s behavior.

Answer 5

Market Integration

Question 6

It is the process by which company combines different activities around theworld so that they operate using the same methods. Itinvolves the process of product standardization and technology development centralization.

Answer 6

Market Integration

Question 7

History of Market Integration

____ Century:
Locomotive and marine steam engine revolutionized world transportation;
The opening of Suez Canal;
Victory for free trade-abandon tariffs on imported goods;
Integration of the world wheat market and world rice market;

Answer 7

19th

Question 8

History of Market Integration

Great Depression of _____

It hampered free trade andforced countries to raise their tariffs to keep foreign product out and help their localfarmers.

Answer 8

1930s

Question 9

History of Market Integration

Post _______ World War

The integration of the global market restarted when American corporations. Thereare changes in the patterns of trade and technology that took place because of the advancement in shipping and navigation.

Answer 9

Second

Question 10

Types of Market Integration

Answer 10

Horizontal Market Integration
Vertical Market Integration
Forward Vertical Integration
Backward Vertical Integration
Conglomerate Market Integration

Question 11

Type of Market Integration

It is a competitive strategy in which two companies of the same nature merge or one larger company acquires asmaller company.

Answer 11

Horizontal Market Integration

Question 12

Type of Market Integration

It is a competitive strategy of a firm own to own the upstream suppliers and downstream buyers; this is an arrangement in which supply chain of a company is also owned by that company.

Answer 12

Vertical Market Integration

Question 13

Type of Market Integration

This process occurs when a companydecides take control of the post-production process or is acquiringa business further up into the supply chain.

Answer 13

Forward Vertical Integration

Question 14

Type of Market Integration

This process occurs when a company decides to buy another company that makes an input product acquiring company’s product.

Answer 14

Backward Vertical Integration

Question 15

Types of Market Integration

This involves a combination or fusion of companies that are involved in unrelated business activities.

Answer 15

Conglomerate Market Integration

Question 16

Type of Market Integration
Conglomerate Market Integration

Types ofConglomerate Market Integration:

Answer 16

Pure Mergers conglomerates
Mixed Mergers Conglomerates

Question 17

Type of Market Integration- Conglomerate Market Integration

Types ofConglomerate Market Integration:

involves companies that have nothing in common.

Answer 17

Pure Mergers conglomerates

Question 18

Type of Market Integration - Conglomerate Market Integration

• combination of companies thatare looking for product extensions or market extensions.

Answer 18

Mixed Mergers Conglomerates

Question 19

Effects of Market Integration

Answer 19

Wider selection of goods and services;
Political Cooperation.
Erosion of national sovereignty.
Employment opportunities.

Question 20

Bretton Woods System

It monitor exchangerates and lend reserve currencies to nations with balance-deficits. Thisinstitution came into formal existence in December 1945.

Answer 20

The International Monetary Fund (IMF)

Question 21

Bretton Woods System

It is also known as World Bank Group which is responsible for providing financial assistance for the reconstruction after World War II and theeconomic development of less developed countries.

Answer 21

The International Bank for Reconstruction and Development

Question 22

These are institutions that provide financial support andprofessional advice for economic and social development activities indeveloping countries and promote international economic cooperation and stability.

Answer 22

International Financial Institutions

Question 23

International Financial Institutions

The Traditional goals of these institutions are:

Answer 23

To reduce global poverty and improve people’s living conditionand standards.
To support sustainable economic, social and institutionaldevelopment.
To promote regional cooperation and integration.
To enhance measures that promote economic growth and protection of the environment.

Question 24

It is a concept of thetwentieth centurywhich is an image of a very highly urbanized area but are full energized and governed by modern state of the art technology and advanced communication capacity. It is a city know to be an economic super power. It is also known to be the “brain hubs” and the centers of a “knowledge economy.”

Answer 24

Global City

Question 25

It is a key location for finance and specialized service firms whichhave replaced manufacturing as the leading economic services;
It is a site of production, including the production of innovations inleading industries.
It is where products and innovations are produced.

Answer 25

Global City

Question 26

They are major nodes in the interconnected systems of information and money, and the wealth that they capture isintimately related to the specialized businesses that facilitate thoseflows.

Answer 26

Global City

Question 27

can be sites of great inequality and poverty.
Environmental threats due to global climate change.
Scarcity of Resources such as Water, Good and Energy due toincrease in demand.
Technological dependence.
Challenge of Good Governance because of complexity and requirededicated of minds.

Answer 27

Global City