The Systems Model of State Development Considers

question 49

Multiple Choice

The systems model of state development considers

• A) an increase in population size to be the defining factor in state formation
• B) states as part of an integrated cultural and ecological whole in which change in one area affects other areas
• C) warfare to be the defining factor in state formation
• D) the expansion of trade to be the defining factor in state formation

Recognize the economic and non-economic benefits of international trade.

Understand the mechanisms through which trade affects national economies and global competitiveness.

Understand the basic principles of international trade and its economic effects on nations.

Identify the roles and criticisms of international trade organizations such as the World Trade Organization.

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Definitions:

Pension Fund

A type of investment pool established for the purpose of managing and investing collected retirement savings for members.

Common Stocks

Equity securities that represent ownership in a corporation, entitling holders to dividends and, in most cases, voting rights.

Discount Rate

The interest rate charged by central banks for loans to commercial banks or the rate used in discounted cash flow analysis to determine the present value of future cash flows.

Federal Funds Rate

The Federal Funds Rate is the interest rate at which banks and credit unions lend reserve balances to other depository institutions overnight, set by the Federal Reserve.