Globalization

Who believed that a nation's wealth and power could be enhanced by accumulating large stores of gold and silver by means of exporting more goods than it imported?

• Globalists

• Imperialists

• Mercantilists

• Capitalists

Which economist is considered a founder of the classical school of economics which emphasized the benefits of free trade versus the previously held ideas of the mercantilists?

• Milton Friedman

• Adam Smith

• Alfred Marshall

• John Maynard Keynes

Which of the following are examples of new technologies that reduced the obstacles and transportation costs created by distance during the First Era of Globalization?

• Oceangoing steamships

• New railroad networks

• Suez Canal

• Telegraph lines

Which of the following are examples of new technologies that drove the integration of global trade during the last half of the 20th century?

• Modern container ships

• Airplanes

• Computers, cell phones, & the Internet

• Fiber optic cables

Describe the three important facets that characterize the global marketplace since the beginning of the Second Era of Globalization. (Hint: Look on Page 3) Write in complete sentences to receive credit.

Today, many different countries are involved in the production process for goods that travel around the world to their final destination. A good example is the Boeing 787 aircraft. Look at the diagram on Page 5. Where is the Main Landing Gear Wheel Well made?

• Italy

• Germany

• U.S.

• Japan

Look on Page 6. Describe how currency exchange rates changed in 20th century. Write in complete sentences to receive credit.

When a single U.S. dollar will buy you less of a foreign currency, what does this imply?

• Americans can buy foreign good more cheaply

• Foreign goods become more expensive for U.S. residents

• Foreigners will find U.S. goods more expensive

• Americans can travel abroad less expensively

Explain why firms or businesses will invest financial capital in foreign countries. Write in complete sentences to receive credit. (Hint: Look on Page 8)

Which of the following choices would reduce trade barriers between countries? (Hint: Look on Page 11)

• Capital controls on the movement of financial capital

• Restrictive immigration laws

• Tariffs and quotas

• Trade Agreements such as ASEAN