19.6 Globalization

How has globalization benefited America's international business interests?

• Globalization has ended American dependence on foreign oil markets.

• Globalization has created more jobs domestically through international competition.

• Globalization has opened new markets for international trade.

• Globalization has created a demand for higher wages for American workers.

How has globalization hindered or harmed American business interests?

• Globalization has reduced competition and protected American businesses
• Globalization has created international tax revenues for American businesses

• Globalization has resulted in increased job opportunities for American workers
• Globalization has hurt domestic businesses due to outsourcing

How has advanced transportation and communications infrastructure contributed to American international business interests?

• It has allowed American businesses to expand their reach and access new markets globally.

• It has resulted in a reduction of American businesses' reach and access to new markets globally.
• It has caused a decrease in the speed and efficiency of moving goods and information for American businesses.
• It has led to increased isolation and limited access to global markets for American businesses.

How does the concept of free trade improve international business?

• By limiting the allocation of nonrenewable resources

• By encouraging isolationism and increasing militarism

• By promoting monopolies and restricting competition

• By reducing trade barriers and tariffs

Why is a comparative advantage important to the United States' international business interests?

• It allows the United States to specialize in producing goods and services in which it is most efficient.
• It causes the United States to rely on importing all goods and services
• It leads to an increase in unemployment in the United States
• It hinders the United States' ability to compete in the global market

How does specialization affect productivity?

• By allowing employees to focus on specific tasks

• By creating confusion in the foreign market

• By limiting the skills and knowledge of employees

• By teaching employees to multitask

Why does the United States form trade alliances with other nations?

• To decrease economic interdependence on foreign markets

• To increase economic opportunities by reducing trade barriers

• To promote isolationism and limit international conflicts

• To end illegal global practices such as human trafficking

Why do trade alliances such as OPEC have so much influence on international markets?

• They can require the United States to ration its consumption of oil

• They can limit the United States' domestic production of the oil

• They can affect product prices of all industries that depend on oil

• They often lead to overproduction and price instability in foreign markets

How has the United States responded to OPEC's overwhelming influence on foreign markets?

• By reducing domestic oil production and increasing imports from OPEC
• By imposing trade sanctions on OPEC countries and their allies

• By placing trade restrictions on nations involved in international military conflicts

• By increasing domestic oil production and researching the use of renewable resources

How has economic globalization negatively affected labor trends?

• Outsourcing has led to exploitative labor practices in foreign countries.

• Outsourcing has led to an increase in minimum wage which in turn caused inflation

• Rising wages and better working conditions for international workers has led to migration

• Decreased competition for jobs in the global market has strengthened production in the US