L2

Question 1

Economic Globalization

Answer 1

1. Mobility
2. Integration
3. Interdependence

Question 2

Growth of Economic Globalization

Answer 2

1. Efficiency of transportation
2. Telecommunications
3. Information>Physical Capital
4. Science and Technology
5. GATT and WTO

Question 3

General Agreement on Tariffs and Trade (GATT)

Answer 3

Reduces and eliminates trade barriers

Question 4

World Trade Organization

Answer 4

Regulation of international trade

Question 5

Positive Effects of Economic Globalization

Answer 5

1. Global Market
   - Increased consumer demand through international chains
2. Competition
   - Global competition = high quality products and services
3. Economies of Scale
   - reduce costs and prices
4. Foreign Direct Investment (FDI)
   - technology transfer, industrial restructuring, growth of global companies
5. Technological Innovation
   - Increased competition = technology development

Question 6

Negative Effects of Economic Globalization

Answer 6

1. Fluctuation
2. Job insecurity
   - temporary
3. Economies of Scale
   - hurts small businesses competing domestically
4. Interdependence
   - interdependence between nations
5. National Sovereignty
   - threat to sovereignty
6. Equity distribution
   - globalization (can be) unfairly biased towards rich nations and individuals.