Economic Development and Globalization

What is economic development?

• Economic development is the process of improving the economic, political, and social well-being of a community or nation.

• Economic development refers only to urban planning.

• Economic development is solely about increasing GDP.

• Economic development is the process of reducing government intervention in the economy.

How do developed and developing countries differ?

• Developed countries have higher income and better infrastructure, while developing countries face economic and resource challenges.

• Developed countries have lower income and poor infrastructure.

• Developed countries rely on agriculture as their main economic activity.

• Developing countries have better healthcare and education systems.

What is international specialization?

• International specialization is when countries focus on importing goods rather than producing them.

• International specialization refers to the practice of countries producing all types of goods equally.

• International specialization means countries only trade with each other without producing anything.

• International specialization is the practice of countries concentrating on the production of specific goods or services in which they have a comparative advantage.

What are the benefits of globalization?

• Decreased cultural exchange

• Reduced access to resources

• Increased isolationism

• Benefits of globalization include economic growth, increased trade, cultural exchange, access to resources, and enhanced competition.

How does free trade impact economies?

• Free trade has no effect on consumer prices.

• Free trade only benefits large corporations and harms small businesses.

• Free trade eliminates all job losses in the economy.

• Free trade generally boosts economic growth and consumer choice but may lead to job displacement in certain sectors.

What are trade barriers?

• Trade barriers are incentives for increasing exports.

• Trade barriers are agreements between countries to lower tariffs.

• Trade barriers are taxes imposed on domestic goods.

• Trade barriers are restrictions imposed by governments to control the amount of trade across their borders.

What is the role of the World Trade Organization?

• To provide financial aid to developing countries.

• To regulate domestic trade within countries.

• To enforce military agreements between nations.

• The role of the World Trade Organization is to regulate international trade and ensure smooth trade relations between countries.

How does protectionism affect global trade?

• Protectionism negatively impacts global trade by restricting imports and exports, leading to higher prices and reduced market access.

• Protectionism leads to increased competition and lower prices.

• Protectionism has no effect on global trade dynamics.

• Protectionism encourages free trade by lowering tariffs.

What are the advantages of international trade?

• Limited access to technology

• Decreased competition among local businesses

• Increased tariffs on imports

• Advantages of international trade include economic growth, access to diverse products, lower consumer prices, and enhanced international relations.

What is comparative advantage?

• Comparative advantage is the ability of an individual or group to carry out a particular economic activity more efficiently than another activity.

• Comparative advantage is the skill of negotiating better trade deals.

• Comparative advantage refers to the total output of an economy regardless of efficiency.

• Comparative advantage is the ability to produce goods at a lower cost than others.