Its not stupid, everyone started knowing nothing too!
Watch movement is basically the mechanic in the watch that works the watch. Every single watch will have a movement, including replicas, and movements are the main reason why watches are expensive.
There are a few type of movement, which is quartz, digital, automatic self winding, spring drive and automatic mechanical winding. Every single type of movement have different kind of accuracy, physical appearance, functions, and the most importantly lasting period. Automatic watches have swiping hands, quartz have jumping hands. And also automatic watch does not require any batteries!!
This is a simple video of how it works :
http://www.youtube.com/watch?v=a0SSxHMBPVcAutomatic movements will last longer than quartz and digital movement, and worth a lot because it is something very very difficult to make, a kind of art not most people know how to appreciate.
Either than that, where the movement is made. Believe it or not, even Malaysia makes movements for Seiko, calling it Malaysian Movement. The well known ones will be Swiss, made in Switzerland of course, German, Japan. China makes movements too!
However, there are also companies that makes movements and sell it to watch manufacturers, examples like ETA and Sellita from Swiss, Miyota from Japan and Seagull from China. Most of the watch manufacturers do not make their own movement (aka in house movement) because it requires a lot of work, time and money, so they just buy it from companies like ETA and insert it into their watches. Here's what it is that is shocking, even well known brands like Tag Heuer, Longines, Tudor, Ball, Panerai etc uses ETA movements!! (Panerai buys ETA movement to modify it). The most common movement used by most watch manufacturers will be ETA and Miyota. However, there are a lot of watches manufacturer that makes their own movement, and they will be the most luxury, prestige watches like Patek Philippe, Audemars Piguet etc. These watches will cost you a bomb!!

This is a Miyota 2025 quartz

and this is a automatic movement by ETA.

and this is a complicated movement by Patek.
You can just see how much more complicated an automatic watch is compared to quartz.
Not to mention, the pink and purple stones on the movements are rubies...