Question 1

How did Ronald Reagan and Margaret Thatcher influence the economy?

Accepted Answer

Both advocated cutting taxes, regulations, and government assistance to the poor in order to promote economic choice

(increased overall wealth, but also increased wealth inequality)

Question 2

What is economic liberalization?

Accepted Answer

Lessening government regulations and restrictions on an economy, and often opening it to foreign markets as well

(India and other non-aligned countries relaxed restrictions during the 1990s)

Question 3

What are free markets?

Accepted Answer

Economic systems based on supply and demand, with little government control

(supported by Reagan and Thatcher)

Question 4

Who was Augusto Pinochet?

Accepted Answer

Former president of Chile, who took power in a US-backed coup against democratically elected socialist Salvador Allende

(eventually ousted due to violent tactics, such as dropping dissidents from helicopters)

Question 5

Who was Deng Xiaoping?

Accepted Answer

Leader of the PRC after Mao Zedong who transformed China into a free-market economy causing massive growth

("let some people get rich first"; PRC=People's Republic of China)

Question 6

What is a knowledge economy?

Accepted Answer

An economic system where most goods are produced based on "knowledge-based" activities

(rapid technical and scientific advancements)

Question 7

What was the Tiananmen Square Massacre?

Accepted Answer

A student-led demonstration that protested against corruption in China's government

Chinese army was sent to the scene, shooting 100-1000+ people

Question 8

How did Finland become a knowledge economy?

Accepted Answer

After the Soviet Union collapsed, Finland faced an economic crisis since its main buyer for manufactured goods was gone

Finland entered the global marketplace, encouraged competition, and invested in education/communications technology

Question 9

Why did Japan's economy grow so much after WWII?

Accepted Answer

Its government designed policies for rigorous education and local businesses

Combined with large investments (from the US and other countries), this turned Japan into a manufacturing superpower

Question 10

What are the Asian Tigers?

Accepted Answer

Hong Kong, Singapore, South Korea, and Taiwan, which have achieved rapid economic growth with rapid industrialization

Question 11

What is the economy like in Vietnam and Bangladesh?

Accepted Answer

Very manufacturing based, with low labor costs

(massive clothing exports from Bangladesh; massive phone exports from Vietnam)

Question 12

What is NAFTA?

Accepted Answer

A US-Canada-Mexico trade treaty that broadened free trade between the three countries

Encouraged US and Canadian industries to build maquiladoras in Mexico

Question 13

What are maquiladoras (factories)?

Accepted Answer

Factories in Mexico that use low-wage Mexican labor to produce goods for foreign exports

(increased due to NAFTA)

Question 14

What is Mercosur?

Accepted Answer

A South American economic bloc that promotes free trade

Question 15

What was the General Agreement on Tariffs and Trade (GATT)?

Accepted Answer

A legal agreement across many global nations that lifted restrictive barriers to trade (like tariffs)

Promoted international trade and restored economic prosperity to Europe after being destroyed by WWII

(mostly replaced by the WTO)

Question 16

What are protective tariffs?

Accepted Answer

Taxes on foreign imports that aim at protecting a domestic industry by making foreign industries more expensive

(GATT greatly reduced global tariffs)

Question 17

What is a multinational corporation?

Accepted Answer

A corporation legally incorporated/based in one country, but makes/sells goods in other countries

(Dutch East India Company and Google)

Question 18

What is the World Trade Organization (WTO)?

Accepted Answer

An intergovernmental organization that regulates and facilitates trade between various nations

(replaced the GATT in 1995)

Question 19

Why did the Indian economy become so powerful?

Accepted Answer

After opening its markets in the early 1990s, India's highly-educated and English-speaking workforce rose to the top of information technology

(drew investments from Western companies, such as Microsoft and Google)

Question 20

What is Mahindra & Mahindra?

Accepted Answer

An India-based multinational corporation that manufactures automotives and other technology

(one of the most trusted businesses in India, opposed to Nestlé which is less trusted)

Question 21

What is Nestlé?

Accepted Answer

A Swiss-based multinational corporation and the largest food company in the world

Received huge criticism for purchasing cocoa production from child labor and using drinking water as a product, rather than a right

(in contrast to Mahindra & Mahindra, which is very trusted)

9.4 - Global Economics, AP World History: Modern Flashcards