Economic Globalization: Processes, Impacts, and Key Concepts

Question 1

Which of the following is a potential downside of economic globalization?

Accepted Answer

Loss of cultural identity.

Answer

Increased global trade and interdependence.

Answer

Higher rates of economic growth.

Answer

Improved living conditions for people in developing countries.

Question 2

Which of the following is NOT considered a major driver of economic globalization?

Accepted Answer

Environmental concerns and the desire to reduce carbon footprint

Answer

Advancements in technology, such as improved communication and transportation

Answer

Increased consumer demand for diverse goods and services from around the world

Answer

Government policies that encourage free trade, reducing tariffs and trade barriers

Question 3

In economic globalization, multinational corporations (MNCs) primarily act as:

Accepted Answer

Facilitators of the movement of goods, services, and capital across borders.

Answer

Agents of global economic inequality reduction.

Answer

Promoters of cultural exchange and understanding.

Question 4

Which of the following is a potential advantage of economic globalization?

Accepted Answer

Increased economic growth and development opportunities.

Answer

Reduced environmental degradation.

Answer

Elimination of poverty in all countries.

Question 5

A potential negative consequence of economic globalization can be:

Accepted Answer

Increased economic inequality between countries.

Answer

Reduced cultural diversity.

Answer

Improved living standards for all.

Answer

Increased political stability.

Question 6

The primary function of international economic organizations like the World Trade Organization (WTO) is to:

Accepted Answer

Regulate and promote international trade through agreements and negotiations.

Answer

Provide humanitarian aid and assistance.

Answer

Monitor and report on human rights violations.

Answer

Resolve international conflicts and disputes.

Question 7

Economic interdependence differs from economic integration primarily in that:

Accepted Answer

Economic interdependence involves dependency on other economies, while economic integration involves the removal of barriers to trade and investment.

Answer

Economic interdependence is a form of economic integration.

Question 8

A global economic trend associated with economic globalization is:

Accepted Answer

Increased outsourcing of production and services across borders.

Answer

Increased economic nationalism and protectionism.

Answer

Strengthened welfare states and social safety nets.

Answer

Reduced migration flows.

Question 9

Technology's role in economic globalization primarily involves:

Accepted Answer

Facilitating communication, transportation, and the exchange of goods and services across borders.

Answer

Reducing the need for international trade and investment.

Answer

Increasing economic inequality between countries.

Question 10

Which of the following is NOT cited as a potential benefit of economic globalization?

Accepted Answer

Increased economic equality

Answer

Increased trade opportunities

Answer

Access to new technologies

Answer

Increased foreign investment

Question 11

The process of companies moving production facilities to countries with lower production costs is known as:

Accepted Answer

Offshoring

Answer

Relocation

Answer

Migration

Answer

Outsourcing

Question 12

Which of the following is considered a key driver of economic globalization?

Accepted Answer

Technological advancements

Answer

Political instability

Answer

Environmental concerns

Answer

Cultural differences

Question 13

The economic theory which suggests that economic growth will eventually benefit all members of society is known as:

Accepted Answer

Trickle-down economics

Answer

Keynesian economics

Answer

Marxist economics

Answer

Laissez-faire capitalism

Question 14

Which of the following is a commonly cited criticism of economic globalization?

Accepted Answer

Job losses and dislocation in certain sectors

Answer

Reduced government control over the economy

Answer

Increased environmental sustainability

Answer

Improved infrastructure development

Question 15

Which organization is responsible for regulating international trade?

Accepted Answer

World Trade Organization (WTO)

Answer

World Bank

Answer

International Monetary Fund (IMF)

Answer

United Nations

Question 16

Which of the following is an example of a multinational corporation?

Accepted Answer

Apple

Answer

Family-owned farm

Answer

Local bakery

Answer

Independent bookstore

Question 17

The process of reducing or eliminating trade barriers between countries is known as:

Accepted Answer

Liberalization

Answer

Nationalization

Answer

Protectionism

Answer

Import substitution

Question 18

Economic globalization has contributed to which of the following:

Accepted Answer

Increased interconnectedness of the global labor market

Answer

Increased isolationism

Answer

Reduced cultural diversity

Question 19

Which of the following is NOT a primary driver of economic globalization?

Accepted Answer

Political stability

Answer

Foreign direct investment

Answer

Advancements in technology

Answer

Trade and commerce

Question 20

AFTA, NAFTA, and the EU are examples of:

Accepted Answer

Regional trade agreements

Answer

Multinational corporations

Answer

Supranational organizations

Answer

Global financial institutions

Question 21

Which of the following is a potential criticism of economic globalization?

Accepted Answer

Increased economic inequality

Answer

Increased political stability

Answer

Greater economic growth

Answer

Improved living standards

Question 22

Which of the following is a potential benefit of foreign direct investment (FDI)?

Accepted Answer

Job creation and economic growth

Answer

Reduced government spending

Answer

Environmental degradation

Answer

Increased inflation

Question 23

What is the primary purpose of the World Trade Organization (WTO)?

Accepted Answer

To promote free and fair trade among member countries

Answer

To regulate international trade in arms

Answer

To provide financial aid to developing countries

Question 24

Which of the following is a characteristic of a multinational corporation (MNC)?

Accepted Answer

Operations and investments in multiple countries

Answer

Small size and local operations

Answer

Focus on domestic markets

Question 25

What is the term for the movement of people from one country to another in search of work?

Accepted Answer

Labor migration

Answer

Trade liberalization

Answer

Foreign direct investment

Answer

Economic development

Question 26

Which of the following is NOT an argument supporting the globalization of financial markets?

Accepted Answer

Increased risk and financial instability

Answer

Improved access to capital

Answer

Greater diversification of investments

Question 27

Which of the following sectors is most heavily influenced by economic globalization?

Accepted Answer

Manufacturing

Answer

Healthcare

Answer

Government

Answer

Education