BUS 200 Chapter Notes - Chapter 7: Paul Krugman, Underemployment, Leontief Paradox
Chapter 7 terms
Collectivism
a political system that emphasizes collective goals as opposed to individual goals
Globalization
Businesses or other organizations develop international influence or start operating on an
international scale
Globalization of markets
The merging of historically distinct and separate national markets into one huge global
marketplace
Globalization of production
The sourcing of goods and services from locations around the globe to take advantage of
national differences in the cost and quality of factors of production
Advantage of globalization(name 3)
-cheaper and better quality products
-raise standard of living
-makes life more interesting
Disadvantage of globalization (name 3)
-not everyone is happy with new people
-lose of domestic jobs
-lose of culture/languages
-exploit workers
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P.E.S.T
P-political
E-economic
S-socio-cultural
T-technology
Issues of macroeconomics (4)
-GDP
-inflation
-unemployment
-business cycles
GDP
...
Inflation
Is the sustained increase of prices of goods and services over some period of time.
When prices rise, money has less purchasing power
Unemployed people are...(3)
-without work
-looking for work
-available to work
Types of unemployment(3)
-structural
-frictional
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Document Summary
Collectivism a political system that emphasizes collective goals as opposed to individual goals. Businesses or other organizations develop international influence or start operating on an international scale. The merging of historically distinct and separate national markets into one huge global marketplace. The sourcing of goods and services from locations around the globe to take advantage of national differences in the cost and quality of factors of production. Is the sustained increase of prices of goods and services over some period of time. When prices rise, money has less purchasing power. Permanent level of unemployment thats caused by forces other than business cycle it occurs when an underlying shift in the economy makes it difficult for some groups to find jobs. Natural rise and fall of economic growth that occurs over time. Has a job your overqualified for [college kids working at starbucks] Export more than they import (countries wealth=national treasury) Focus on those areas where they have an absolute advantage.
