Economic Geography and Globalization Quiz

Primary economic activities involve the extraction of raw materials from the earth, such as farming.

Outsourcing is the practice of transferring a company's activities to external subcontractors, often in less developed countries.

Globalization typically leads to increased cultural diffusion as ideas, goods, and people move more freely across borders.

The inflation rate is the percentage increase in the price of a basket of goods and services over a period of time.

Population density, while related to economic development, is not considered a direct determinant of economic development.

A trade deficit occurs when a country's imports exceed its exports in value.

Gross Domestic Product (GDP) is the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period.

Neoliberalism is an economic theory that advocates for minimal government intervention in the economy, promoting free market principles.

Urbanization is the process of population concentration in urban areas.

Comparative advantage theory suggests that countries should specialize in producing goods where they have a lower opportunity cost compared to other countries.

The International Monetary Fund (IMF) is an international organization that aims to promote international monetary cooperation, exchange stability, and orderly exchange arrangements.

A tariff is a tax or duty imposed on goods transported across international borders.

Globalization is the process of interaction and integration among people, companies, and governments worldwide, driven by international trade and investment and aided by information technology.

Dumping is the practice of selling goods in a foreign market at a price below their cost of production or below their domestic selling price.

Developed countries typically have high literacy rates, among other characteristics such as high income levels and advanced infrastructure.

Fiscal policy is the use of government spending and taxation to influence the economy.

Supply-side economics focuses on increasing the overall supply of goods and services in the economy by incentivizing production.