Objective 11: Global Economy
The economies of individual nations are interdependent.
How have enhanced information flows created an expansion of markets for businesses and consumers worldwide?
United States businesses have become multinational in their quest for productive resources, markets, and profits. United States firms may move factories to other countries to reduce costs (off-shoring).
The economy of the United States depends on resources and markets around the world for the production and sale of goods and services.
How does technology facilitate working across borders?
Advances in technology allow businesses to get skilled work, such as engineering and accounting, done by people who remain in their home countries (i.e., to outsource this work). This increases the supply of workers and holds wages and costs of production down.
How does immigration affect the supply of labor in the United States?
Immigration brings workers into the country and increases the supply of labor.
How does changing worldwide supply of and demand for limited natural resources affect their prices?
As foreign countries develop and grow, they demand more products and natural resources, such as oil, pushing up prices. Total world production is greater when nations specialize in the production of those products that they can produce most efficiently.
What is a trade deficit?
When the United States imports more goods and services than it exports, the difference is the trade deficit.
Who are the major trading partners for Virginia and the United States?
Canada, Mexico, the European Union, China, and Japan are the major trading partners of the United States.
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