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9 Cards in this Set
- Front
- Back
World Wide Economic Problems
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Pollution- More people die from unsafe water than from all forms of violence.
Wealth Inequality Persistent Poverty- 1/4 of the world in in poverty Military spending |
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Pareto Efficiency
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Trade is a win-win situation because if both parties in an economic trade did not gain, they would not be involved
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Economies of scale
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Cost per unit decreases as the quantity of the product increases (more expensive to produce 1 TV rather than 500)
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Absolute Advantage
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A country has a monopolistic position for a good or produces an item at the lowest cost
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Comparative advantage
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A country can supply a good with a small sacrifice of alternative goods and services than the rest of the trading world
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Benefits of Globalization (4)
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Growing economic interdependence- Increased standards of living, more choices everywhere
Improved environmental protection Better working conditions Improved social and economic status of women |
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Problems of Globalization (7)
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Loss of jobs
International organizations can intrude into national sovereignty Gap between 'haves' and 'have nots', dangerous working environments for some people. Illegal sweatshops Poor working conditions- as labor shifts so do working conditions in these countries Child and forced labor - Nike used children to assemble shoes Environmental problems Dominance of American values and culture |
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Benefits of free trade
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Lower prices - Cheap labor from other countries makes products cheaper
More choices of goods |
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Barriers of free trade
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Focus on national interest- govt. focuses on their own people rather than the whole world
Corruption - large business owners Legal restrictions - Tariffs, Health and safety standards, subsides, dumping |