The Contemporary World Topic 5

• True or False:

  Since growth rates vary, the country rankings remain the same over time.

  False
• Efficiency in any economy, even the world economy, is achieved if capital and labor can move freely to where their productivity is the highest- where factors of production are put to work in their "highest and best uses." What is this pertaining to?


  The Global Circular Flow
• He classifies the period of 1820-1914 as the first great period of globalization and the period since World War II as the second.


  Jeffrey Williamson
• When was the first great period of globalization?

  1820-1914
• The period since _ _ _ is classified as the second great period of globalization, according to economic historian Jeffrey Williamson.


  World War II
• The argument for free trade rests on two pieces of intuition: voluntary exchange is efficient, and _ _.

  Comparative advantage
• A countey enhoys a _ _ in the production of a good if the production of that good has a lower opportunity cost than it would have if produced in another country.

  Comparative advantage
• This is referred to as strains of food that have been genetically modified.


  Genetically modified foods
• A _ _ does not interact with other economies in the world.

  Closed economy
• A _ _ interacts freely with other economies around the world.

  Open economy
• A _ _ interacts freely with other economies around the world.

  Open economy
• These refer to the domestically-produced goods and services sold abroad.

  Exports
• These refer to the foreign-produced goods and services sold domestically.

  Imports
• Value of exports - value of imports = 


  Net exports
• Net exports are also called as...

  Trade balance
• The three factors facilitating economic globalization are the Nation State, United Nations and NGOs, and _ _.


  Transnational corporations
• Globalization is redefining the role of _ _ as an effective manager of the national economy.

  National state
• Globalization is redefining the role of _ _ as an effective manager of the national economy.

  National state
• This is an example of archaic globalization according to Frank and Gills.


  Silk Road
• Economic globalization is not new. According to Adam Smith, there are two greatest achievements of history. What are they?


  Discovery of America, direct sea route to India
• Economic globalization is not new. According to Adam Smith, there are two greatest achievements of history. What are they?


  Discovery of America, direct sea route to India
• A _ believes the modern world system fosters universal economic growth and development is benefited from openness in trade.

  Globalist
• A _ believes that the modern world system fails to reduce absolute poverty.

  Non-globalizer
• Imperialism is a product of _.

  Capitalism
• True or False:

  According to Arrighi, globalization is the product of long process of imperialist development, not necessarily new but a relabelling of the old.

  False
• Economic globalization is a _ process, the result of human innovation and technological progress.

  Historical
• True or False:

  Economic globalization refers to the increasing integration of economies around the world, particularly through movement of goods, services, and capital across boarders.


  True
• A legal entity wholly separate from the shareholders who own it.


  Corporation
• It is a business owned and managed by one individual. The owner receives all the profits and bears all the losses.


  Sole Proprietorship