Busmhr 2000 Study guides, Class notes & Summaries

Globalization The shift toward a more integrated and interdependent world economy. Globalization of markets The merging of historically distinct and separate national markets into one huge global marketplace. Globalization of production The sourcing of goods and services from locations around the globe to take advantage of national differences in the cost and quality of factors of production. Factors of production Labor, energy, land, and capital. General Agreemen...

Group of Twenty (G20) - ️️-Established in 1999. -Comprises the finance ministers and central bank governors of the 19 largest economies in the world, plus representatives from the European Union and the European Central Bank. -Originally established to formulate a coordinated policy response to financial crises in developing nations. -2008/2009 it became the forum where major nations attempted to launch a coordinated policy response to the global financial crisis. The Uruguay Round -...

benefit domestic producers by limiting competition from abroad, increases prices for consumers - ️️results of VER local content requirement - ️️demands that some fraction of the product be produced domestically help domestic producers compete against low cost foreign imports and gain export markets, consumers absorb the costs - ️️results of subsidies tariffs, subsidies, import quotas, voluntary export restraints, local content requirement, antidumping policies - ️️6 instru...

Globalization ~~> The trend toward increased cultural and economic connectedness between people, businesses, and organizations throughout the world. Global Institutions ~~> (1) -Help manage, regulate, and police the global marketplace. -Promote the establishment of multinational treaties to govern the global business system. - General Agreement on Tariffs and Trade (GATT), World Trade Organization (WTO), International Monetary Fund (IMF), World Bank, United Nations (UN)....

voluntary export restraints - ️️a.An official agreement with another country that voluntarily restricts the quantity of its exports b.Quota on trade imposed by the exporting country, typically at the request of the importing country's government Ad Valorem Tariff - ️️can increase government revenues, provide protection to domestic producers against foreign competitors by increasing the cost of imported foreign goods, force consumers to pay more for certain imports, reduce overall ...

free trade - answer-government does not attempt to restrict what citizens can buy from another country or what they can sell to another country tariffs - answer-A tax on imports that effectively raises the cost of imported products relative to domestic products special tariffs - answer-levied as a fixed charge for each unit of a good imported Ad Valorem Tariff - answer-can increase government revenues, provide protection to domestic producers against foreign competitors by increasing th...

political union - ️️regional integration with no internal tariffs, common external tariffs, factor mobility allowed, common currency, monetary & fiscal policies, and common political institutions common market - ️️regional integration with no internal tariffs, common external tariffs, and factor (i.e. factors of production - labor, capital etc.) mobility allowed Flow - ️️amount of FDI over a period of time (one year) Stock - ️️total accumulated value of foreign owned assets...

free trade - answer-govt does not attempt to restrict what its citizens can buy from another country or sell to another country tariffs, subsidies, import quotas, voluntary export restraints, local content requirement, antidumping policies - answer-6 instruments of trade policy tariff - answer-a tax levied on imports that effectively raises the cost of imported products relative to domestic products increases govt revenues, protects domestic producers from foreign competitors, pro-produ...

Mercantilism - ️️1st theory of international trade- an economic policy under which nations sought to increase their wealth and power by obtaining large amounts of gold and silver and by maximizing exports and minimizing imports Economic Motives - ️️the motivation to increase return through higher revenues or lower costs through international raw materials, natural resources, a cheap labor supply for manufacturing goods Global Institutions - ️️(1) -Help manage, regulate, and pol...

• Globalization - answer-The trend toward increased cultural and economic connectedness between people, businesses, and organizations throughout the world. Global Institutions - answer-(1) -Help manage, regulate, and police the global marketplace. -Promote the establishment of multinational treaties to govern the global business system. - General Agreement on Tariffs and Trade (GATT), World Trade Organization (WTO), International Monetary Fund (IMF), World Bank, United Nations (UN). WT...