Sem B Unit 6: The Global Game Board

Front

What can a country have with an international division of labor?

Back

specialized production

Front

Which conditions would allow Country A to have an absolute advantage over Country B in the production of textiles?

Back

Country A can manufacture textiles more cheaply.

Front

Under which circumstance would a country have a comparative advantage in the production of a certain good?

Back

It has a lower opportunity cost for production of that good.

Front

Why does the growth of international trade lead to a rising global standard of living?

Back

International trade enables specialization, which brings increased efficiency and greater competition.

Front

Why do protective tariffs lead to reduced international trade?

Back

Protective tariffs increase the price of goods and limit the sale of those goods.

Front

Why does globalization give countries an incentive to reduce wages for their workers?

Back

Lower production costs help lure foreign investment.

Front

Why do the actions of central banks have an important effect on the global economy?

Back

Control of the money supply determines how much money is available for international trade.

Front

Role of the International Monetary Fund (IMF) in the global economy?

Back

provide short-term emergency loans

Front

Why does the IMF impose conditions on its loans?

Back

help manage the economies of struggling countries

Front

How does the WTO help stabilize the global economy?

Back

assuring that producers will have open access to necessary resources