International Business and Economic Concepts Quiz

International trade aims to promote globalization by fostering economic integration and interdependence among nations.

GDP represents the total monetary value of all goods and services produced within a country's borders over a specific time period.

Gross Domestic Product measures the total monetary value of all goods and services produced within a country's borders over a specified period, typically a year.

Capitalism operates on the principles of private ownership of the means of production and free market competition, where prices are determined by supply and demand.

Countries specialize in producing goods where they have a comparative advantage, meaning they can produce at a lower opportunity cost compared to other countries.

A trade surplus occurs when a country exports more goods and services than it imports, leading to a positive balance of trade.

The HDI combines indicators of life expectancy, education, and income to assess a country's overall standard of living.

NAFTA is a trade agreement between Canada, Mexico, and the United States, aimed at reducing trade barriers and promoting economic cooperation in North America.

The IMF provides financial assistance to member countries experiencing balance of payments difficulties to help stabilize their economies.

The WTO aims to facilitate international trade by promoting cooperation among member nations and reducing barriers to trade such as tariffs and quotas.

FDI refers to investment made by a company or individual in one country in business interests in another country, typically through the establishment of business operations.

Keynesian economics advocates for government intervention in the economy, particularly through fiscal and monetary policies, to mitigate economic fluctuations and promote stability.

The IMF's primary goal is to promote international monetary cooperation, exchange rate stability, and balanced economic growth among member countries.