Economic globalization refers to the increasing integration of national economies through trade, investment, and the flow of goods, services, and capital
Foreign direct investment is a key aspect of economic globalization.
What is the term for the movement of capital across borders in economic globalization?
Capital flow
Arrange the following components of economic globalization in a logical sequence:
1️⃣ Increased international trade
2️⃣ Foreign direct investment
3️⃣ Global supply chains
4️⃣ Movement of capital across borders
The primary drivers of economic globalization include technological advancements, reduction in trade barriers, and international agreements
Match each driver of economic globalization with its impact:
Technological Advancements ↔️ Facilitate faster and cheaper movement of goods
Reduction in Trade Barriers ↔️ Promotes increased international trade
International Agreements ↔️ Encourages cross-border economic activities
What is one benefit of increased trade resulting from economic globalization?
Lower prices for consumers
Job creation in developing countries is a direct result of economic globalization.
Economic globalization leads to technological transfer, which fosters faster economic development
Match each driver of economic globalization with its example:
Technological Advancements ↔️ Development of the internet
Reduction in Trade Barriers ↔️ WTO trade agreements
International Agreements ↔️ EU trade pacts
Economic globalization leads to greater consumer choices and lower prices.
What is one disadvantage of job displacement in developed nations due to economic globalization?
Reduced employment
Economic globalization can widen the income gap, leading to greater income inequality
Environmental degradation is a negative consequence of economic globalization.
Match each international organization with its purpose:
United Nations (UN) ↔️ Promotes global peace and cooperation
World Trade Organization (WTO) ↔️ Regulates international trade
International Monetary Fund (IMF) ↔️ Stabilizes global financial system
What are two examples of reductions in trade barriers mentioned in the study material?
Decreasing tariffs and quotas
Increased trade leads to greater choice and lower prices
How does economic globalization create jobs in developing countries?
Global companies invest
Technological transfer during globalization leads to faster economic development
Economic growth driven by globalization boosts GDP and global prosperity.
What is one major disadvantage of economic globalization mentioned in the study material?
Income inequality
Environmental degradation is a key concern associated with economic globalization due to increased resource consumption
Why does job displacement occur due to globalization?
Jobs shift to lower-wage countries
Match the disadvantage of economic globalization with its description:
Income Inequality ↔️ Widening income gap between rich and poor
Environmental Degradation ↔️ Increased pollution and resource depletion
Job Displacement ↔️ Loss of jobs due to outsourcing
Loss of Cultural Diversity ↔️ Homogenization of local traditions
Globalization can lead to deforestation for palm oil production.
The shift of jobs to lower-wage countries can result in job displacement
What is an example of environmental degradation caused by economic globalization?
Deforestation for palm oil
The dominance of American fast-food chains is an example of cultural homogenization caused by globalization.
What are three roles of international organizations in economic globalization?
Setting standards, promoting trade, stabilizing financial systems
Match the international organization with its primary purpose:
United Nations (UN) ↔️ Promotes global peace and cooperation
World Trade Organization (WTO) ↔️ Regulates international trade
International Monetary Fund (IMF) ↔️ Stabilizes global financial system
What are two negative effects of economic globalization in China?
Widened income inequality and environmental degradation
Fair trade practices ensure equitable prices for producers in developing countries
Promoting environmental sustainability involves enforcing environmental regulations and using sustainable production methods.
What is an example of strengthening social safety nets for workers displaced by globalization?