Final Exam for Global Economics (due on Tuesday, August 17, 1999) Global Economics Exam (this is the entire exam)
Matching Part I Matching Part II __1. MNE __1. James Gusch __2. technological factors __2. Lorenz Curve __3. global equalization of factors of production __3. Laffer Curve __4. vertical integration __4. Okun's Law __5. horizontal integration __5. Vaclev Klaus __6. firm globalization stages __6. Max Weber __7. global policy regimes __7. M. C.. Porter __8. potential population density __8. Thomas Malthus __9. urban gdp axiom __9. Kaldor & Verdoorn __10. Q = Pr + T __10. Camagni __11. Green Revolution __11. Joseph Schumpeter __12. greenhouse effect __12. Hayek __13. fusion torch __13. August Lusch __14. MEW __14. Esther Boserup __15. transmaterialization __15. Alfred Chandler __16. synergies of innovations __16. Launhardt-Palander __17. socializing means of production __17. Adam Smith __18. socializing proceeds of production __18. von Thunen __19. Engels' Law __19. Kondratiev __20. theories of value __20. Samuel Huntington __21. corporatism __21. Giovanni Dosi __22. flexible factories __22. Jacob Viner __23. centralized markets __23. Bela Balassa __24. supply side economics __24. Bill Gates __25. deindustrialization __25. Milton Friedman __26. push/pull theory __26. Olsen __27. McCall __28. Horvath __29. Paul Krugman __30. Taafe, Merril, Gould Matching Part III Matching Part IV __1. snatchers __1. comparative advantage __2. stickers __2. O'Brien's hypothesis __3. network accessibility __3. FDI __4. network density __4. social capital __5. industrial inertia __5. Hecksher-Ohlin model __6. rounding out __6. Loentieff Paradox __7. scrap and build __7. New Theory of Trade __8. in situ restructuring __8. ADI __9. market potential __9. GATT __10. MR = MC __10. WTO __11. IMF __11. NAFTA __12. LDC __12. MFN __13. appropriate technology __13. Bretton Woods __14. clustering __14. Pacific Rim __15. dynamic externalities __15. factor proportions theory __16. cube-square law __16. debtor nation __17. principle of reserves __17. sovereignty __18. labor diseconomies __18. satrapy __19. technical diseconomies __19. barriers to trade __20. management diseconomies __20. labor theory of value __21. marketing diseconomies __21. theory of labor power __22. fifth wave __22. capital intensive __23. post-industrial society __23. labor intensive __24. FMS __24. regionalization __25. metropoles __25. normal profit __26. mercantilism __26. breakeven 108 Possible 90-100 A 80-89 B 70-79 C 60-69 D Part I Matching Answers A. a higher price will produce more of an item/general economic rule of the economics of resources that accelerating demand raises price and availability of a resource. B. global warming scenario. C. falling transport costs, telecommunications revolution, deregulation D. better, often synthetic, substitute materials replace older ones. E. scarcity, utility, labor theory, labor power. F. the rust belt is archetypical example of this. G. transgenic crops. H. high heat level would allow total recycling. I. posits decline of nation states and rise of region states. J. multinational production of parts sent to another country for assembly. K. redistribution under socialism. L. output and GDP increases with population. M. innovation transfer, management skill transfer, diffusion of technology through system, generation of international trade. N. broadened scale of life quality supposed to reach beyond immediate economic situation. O. small runs of niche products network coordinated by computer. P. redistribution under social democracy. Q. circular self-reinforcing mechanisms of increasing returns. R. government policy may support market forces and draw in development, but can not force it in. S. dependent on comparative advantage, MNE branches make different parts. T. the economic structural model of fascism. U. expresses positive relationship between urbanization and gdp increase. V. move to export, international production, globalized outlook, organization, and cultrure. W. suggests why Arlington stayed open and Willow Run closed. X. firm engaging in business in many countries. Y. might include lower tax rates, reduced regulation, incentives to innovation, cutting information costs, other ways to promote market forces, and increase production/supply. Z. poor spend larger proportion of income on food than rich. Part II Matching Answers A. plots the distribution of wealth in an economy by quintiles of the population and the wealth held by each; the more bowed the curve is, the more inequitable the distribution of wealth is. B. posit the possibility of increasing returns. C. long cycle fluctuations of economy based on money supply. D. argues the economic decline of nation states. E. free market leader of Czech Republic. F. innovation milieu. G. business cycle is a 'gale of creative destruction.' H. argued inverse relationship between government size and economic growth. I. wrote Road to Serfdom J. protestant ethic as basis for capitalism. K. describes four developmental stages of globalization: export factor driven, investment driven, innovation driven, wealth driven. L. the long wave cycle based on technosystems. M. because the best farm land was in Pennslyvania and had been used, the world would soon be overpopulated. N. portrays middle management as the real power in corporate America. O. demonstrates impact of technological change on location of industry due least cost location, expanding Alfred Weber's idea of transport costs as a linear function of distance. P. friction free capitalism ala Adam Smith is in the future. Q. at 'full production,' the level of economic growth is limited to low level of increase. R. the isolated state in which distance and transport costs to central markets will determine farming cultivation patterns. S. suggests inverse relationship between marginal tax rates and revenue generated. T. argued division of labor for labor efficiencies, which promotes mass production, learning curves, and technical advances. U. identified five sequential levels of economic integration. V. creation of new technology pushes economy to higher levels. W. supply tunnel -- price increases with distance from production. X. integration was selective discrimination for members and against non-members. Y. divisive tendencies which are cultural lead to global clash of civilizations. Z. positive relationship of r and d research and gdp ecpansion. AA. described patterns of African development as following on penetration from the coast on imperial design and exploitation. BB. expanded on Taafe, et al, to explain that imperial based development patterns could not reach to self-centered development in Africa. CC. argued how third world development actually helped and did not hurt first world. DD. expanded von Thunen thesis on the basis that with technology and transport, expansion of market zones would follow. Part III Matching Answers A. A term that is used to mean the same thing as Third World countries; those that are only really beginning to develop economically. B. Shimble dispersion index that is built on connectivity. C. maximization of profit; where firms operate on the planning/ operations curve. D. persistence of an industry in a location long after initial locational advantages have ended. E. a theory of scaling up equipment which suggests the relationship between the surface and volume of a three dimensional area. F. can result form overspecification. G. the third type of economy of scale involving cost reductions on surrounding environment. H. Japanese strategy in steel manufacturing of regularly seeking technological advance to replace existing plant and equipment. I. argues that there are limits of sheer size to the cube square law. J. early trade theory emphasizing the importance of a positive flow of wealth into a country. K. new economies of scope based on globalized production/flexible manufacturing systems. L. under the general auspicies of the UN, it was set up as a currency exchange expeditor providing loans that function almost like overdraft protection, and thus greasing the wheels of international trade, but the loans of which are contingent upon conditionalities it imposes, often to the detriment of the nations receiving them, and which is largely controlled by the big industrialized economies. M. concern is with long term profitability. N. grows out of increasing size of operation and involves the complexity of desisions and other tasks, the heirarchical distance from operations, and less flexibler decision-making. O. working a technological base until it is worn out. P. maintaining spare machinery to cover maintenance downtime, etc. Q. philosophy of wringing out profits in the short run. R. more output -- more sales -- more advertisinig; but is there a saturation point which can backfire? S. stimulate a continued flow of research on knowledge spillovers, producing increased returns to scale, and which has been the engine of much recent urban/regional growth. T. global cities altering geography to loci or focal points of operation on a 'spaceless' basis. U. Daniel Bell's contention of an economy moving beyond productive orientation. V. one of the more dilatory of the conditionalities often imposed by the IMF, it involves limited the technical level of economies to their present level of development. W. knowledge products; information technology. X. example would be Japanese investment in U. S. steel production, but not that in Pittsburgh. Y. analagous to population potential, it is the sum of interactions with each market. Z. Borchert and de Souza thesis based on population density. Part IV Matching Answers A. a country which is under the control of another nation or authority. B. the fixed exchange rate system set up in 1945 in the wake of WWII which lasted until 1973. C. power and authority, as with a government having jurisdictional control of itself. D. places the source of value in the labor utilized in producing something. E. notion of a developing 'spaceless' virtual economy of global integration. F. elements of infrastructure related to necessities of a society and culture based on a given level of development -- schools, hospitals, etc. G. approximates retail gravitation/media impact marketing map. H. treaty among nations reducing trade barriers among them. I. in the case of the US, this means there is more investment in it by foreign interests than it has invested in foreign lands. J. the emergent major trade region, replacing that of Europe and North America. K. return on an investment at least equal to that it would have earned in an alternative investment. L. US exports seemed to be more labor intensive than our imports. M. promoted by such as Krugman, this wants to consider increasing returns and imperfect competition N. posits that countries export goods which are abundant factors and import those of scarce factors, which basically is related to its comparative advantage, and that location will cease to be of importance in world trade as globalization continues. O. international agency, under auspices of the UN, which is supposed to promote trade and the reduction of barriers to it. P. investment in productive technology which is more oriented to human motive power. Q. bilateral trade agreements. R. development of trade arrangements and patterns of nations near one another that is a hallmark of the globalizing world economic order. S. investment in productive technology which is oriented to machine enhanced wealth generation. T. the treaty reducing trade barriers among the US, Canada, and Mexico. U. MC = ATC; indicative of a normal profit and continued operation on short run and long run supply curves. V. political interference is perhaps the most significant. W. private investment by firms of one country in another country. X. countries will specialize in production and export of those things they can make more efficiently than others, and import those they are relatively less efficient at. Y. difference among countries in possession of factors of production. Z. wealth is derived on investment in human augmented technology requiring a normal return to be sustained or expanded. Return to Syllabus page for Global Econ Return to beginning of ejps