Unit 3 Review

Question 1

What is Economic Globalization?

Answer 1

The integration of the world’s economies and the exchange of goods.

Question 2

What event significantly changed economic systems after WWII?

Answer 2

The establishment of trade regulations and agreements that gave rise to international corporations.

Question 3

What characterized the economic systems prior to the 1929 economic crash?

Answer 3

Mostly unregulated, increasing the likelihood of extreme economic ups and downs.

Question 4

What did the 1920s economic prosperity lead to?

Answer 4

Widespread use of credit by millions of people.

Question 5

How did WWII impact the Great Depression?

Answer 5

It created massive production and employment opportunities.

Question 6

What was the focus of reform economics after the Great Depression?

Answer 6

Maintaining economic strength and ensuring global peace.

Question 7

What did the Bretton Woods Agreement establish?

Answer 7

A postwar international monetary system of convertible currencies, fixed exchange rates, and free trade.

Question 8

What is a common monetary system as per the Bretton Woods Agreement?

Answer 8

Each country maintains a fixed exchange rate for its currency based on the gold standard.

Question 9

What happens when governments print more money?

Answer 9

Debt increases, leading to a drop in currency value and inflation.

Question 10

What are Floating Exchange Rates?

Answer 10

Currency value is decided by supply and demand in the foreign exchange market.

Question 11

Define Fixed Exchange Rate.

Answer 11

Value of currency is decided by the government and corresponds to gold reserves.

Question 12

Define Floating Exchange Rate.

Answer 12

Value of currency is decided by how desirable it is on the international market.

Question 13

Who are two influential economists mentioned?

Answer 13

• John Maynard Keynes
• Friedrich Hayek

Question 14

What does a mixed economy suggest regarding government involvement?

Answer 14

Governments should play a significant role while supporting individual enterprise.

Question 15

What is the concept of BIG government?

Answer 15

Higher taxation, common good model, increased focus on social services.

Question 16

What is the concept of SMALL government?

Answer 16

Less taxes, more individualism, reduced social services.

Question 17

What determines the value of money?

Answer 17

The amount of national currency compared to other countries.

Question 18

What was established in 1944 during the Bretton Woods Conference?

Answer 18

The International Bank for Reconstruction and Development (IBRD).

Question 19

What is the main goal of the World Bank?

Answer 19

Liberalization of global trade.

Question 20

What must countries do to receive funding from the World Bank?

Answer 20

Apply and meet guidelines for reducing poverty and sustainable development.

Question 21

What is the purpose of the International Monetary Fund (IMF)?

Answer 21

To ensure the stability of the international monetary system.

Question 22

What are the main functions of the IMF?

Answer 22

• Providing financial assistance to unstable countries
• Overseeing global economic trends

Question 23

What must nations do to receive funding from the IMF?

Answer 23

Implement structural adjustments including reduction in government spending.

Question 24

What does the World Trade Organization (WTO) do?

Answer 24

Deals with the rules of trade between nations.

Question 25

What did the WTO replace?

Answer 25

The General Agreement on Tariffs and Trade (GATT).

Question 26

List criticisms of the WTO.

Answer 26

* Undermines state sovereignty * Challenges representative democracy * Members cannot uphold local laws for workers' rights * Controlled by larger nations * Represents interests of large corporations and wealthy citizens

Question 27

What does the European Union allow its citizens?

Answer 27

To move and work anywhere within the union.

Question 28

Define Sustainable Prosperity.

Answer 28

Meeting current needs without compromising future needs.

Question 29

What are the key points of Free Trade?

Answer 29

* Eliminate Tariffs * Reduce protectionist policies * Freer flow of goods and services ## Footnote These points highlight the fundamental principles of free trade agreements.

Question 30

What does NAFTA stand for?

Answer 30

North American Free Trade Agreement ## Footnote NAFTA was signed in 1992 and aimed to eliminate tariffs and trade barriers between the U.S., Mexico, and Canada.

Question 31

What was one of the main objectives of NAFTA?

Answer 31

* Removing barriers to trade * Promoting fair competition * Protecting intellectual property rights * Creating dispute resolution methods * Enhancing cooperation ## Footnote These objectives were designed to increase trade and jobs across the three countries.

Question 32

What are some benefits of NAFTA?

Answer 32

* Lowered prices of goods * Real wage increases in all three countries * Created 5 million jobs * Encouraged cooperation between countries * Easier trade of goods ## Footnote These benefits contributed to economic growth and specialization among the countries.

Question 33

What are some cons associated with NAFTA?

Answer 33

* Loss of North manufacturing jobs * 2 million small farmers in Mexico out of work * Lifted tariffs but not regulations ## Footnote These issues highlight the challenges faced despite the benefits of NAFTA.

Question 34

What is the USMCA?

Answer 34

The deal intended to replace NAFTA ## Footnote The USMCA includes changes on cars, labor, environmental standards, and digital trade provisions.

Question 35

Who signed the USMCA?

Answer 35

* Canadian Prime Minister Justin Trudeau * U.S. President Donald Trump * Mexican President Enrique Peña Nieto ## Footnote The agreement was signed on November 30, 2018.

Question 36

What are some benefits of the USMCA to Canada?

Answer 36

* Stricter labor requirements * Benefits to oil drilling and gas industries * Increased online purchasing tax-free * U.S. exports to Canada increase by 5.9% * Canadian imports to the U.S. increase by 4.8% ## Footnote These benefits reflect improvements in trade dynamics for Canada.

Question 37

What are some benefits of the USMCA to Mexico?

Answer 37

* Strengthening labor standards and rights * Better wages in the auto industry * Opportunities to increase auto parts production ## Footnote These benefits aim to enhance the economic situation for Mexican workers.

Question 38

What are some benefits of the USMCA to the United States?

Answer 38

* Increased U.S. food and agricultural exports * More investments and jobs in the U.S. auto industry ## Footnote These benefits indicate economic growth opportunities for the U.S. as a result of the agreement.

Question 39

What does CETA stand for?

Answer 39

Comprehensive Economic and Trade Agreement ## Footnote CETA is a free-trade agreement between Canada and the European Union that removes 98% of preexisting tariffs.

Question 40

What is the Trans Pacific Partnership?

Answer 40

An agreement signed by twelve countries bordering the Pacific Ocean ## Footnote The TPP represented roughly 40% of the world's economic output.

Question 41

What economic impact did the TPP have?

Answer 41

* 40% of the world's total GDP * 26% of global trade * 793 million consumers ## Footnote These figures highlight the significance of TPP in global economics.

Question 42

What is a tariff?

Answer 42

A government-imposed price increase on imported goods ## Footnote Tariffs are used to support domestic industries by making foreign products more expensive.

Question 43

Fill in the blank: NAFTA was created to _______.

Answer 43

[increase trade and jobs on both sides of the border]

Question 44

What does sustainability mean?

Answer 44

Meeting our own needs without compromising the ability of future generations to meet their own needs ## Footnote Includes natural, social, and economic resources.

Question 45

What is the ecological footprint of Canadians per person?

Answer 45

8.17 hectares/person ## Footnote This is significantly larger compared to countries like Bangladesh, which is 0.6 hectares/person.

Question 46

What percentage of the world’s people have an ecological footprint of less than 1.89 hectares/person?

Answer 46

More than 70% ## Footnote This is the amount of resources available per person.

Question 47

What is the average growth rate of shipbuilding from 2000 onwards?

Answer 47

8.3% per year ## Footnote This growth is attributed to increased global trade and the need to replace older vessels.

Question 48

What is containerization?

Answer 48

A system of freight transport using containers of a uniform size for efficiency ## Footnote Containers can be loaded, unloaded, and transferred between transport modes efficiently.

Question 49

What are flags of convenience?

Answer 49

Ships registered in a country other than that of their owner ## Footnote They help reduce operating costs and allow illegal fishing operators to avoid prosecution.

Question 50

How does the demand for consumer goods relate to sustainability and ships?

Answer 50

Increased demand leads to a need for mega ships to transport goods ## Footnote Shipbreaking contributes to pollution and environmental degradation.

Question 51

What happens to ships when they are 25-30 years old?

Answer 51

They become too expensive to maintain and are scrapped ## Footnote This process releases hazardous materials into the environment.

Question 52

What organizations are pressing for more sustainable shipbreaking practices?

Answer 52

International Maritime Organization, International Labour Organization ## Footnote They advocate for comprehensive rules and tighter enforcement.

Question 53

What is the ecological footprint?

Answer 53

A measure of human demand on Earth's ecosystems ## Footnote It compares human consumption of natural resources with the planet's ecological capacity.

Question 54

How does 'The Lorax' illustrate the concept of environmental sustainability?

Answer 54

It critiques consumerism and highlights the importance of preserving natural resources ## Footnote The story serves as a warning about unchecked consumer demand.

Question 55

What are the real-world issues connected to the warnings about globalization and resource use in 'The Lorax'?

Answer 55

Environmental degradation and unsustainable resource exploitation ## Footnote The story reflects real-world challenges in balancing economic growth with environmental responsibility.

Question 56

If international environmental regulations existed in 'The Lorax', how might the Once-ler's actions have changed?

Answer 56

The environmental outcomes could have been more positive ## Footnote Regulations might have limited the exploitation of resources.

Question 57

Fill in the blank: The ecological footprint of Bangladesh is _______.

Answer 57

0.6 hectares/person