Economic Globalization: Impact on International Relations

Question 1

Which of the following is a commonly used indicator to measure the level of economic globalization?

Accepted Answer

KOF Globalization Index

Answer

Gross Domestic Product (GDP) per capita

Answer

Human Development Index (HDI)

Answer

World Economic Forum Global Competitiveness Index

Question 2

What is the concept of 'global value chains' primarily concerned with?

Accepted Answer

Analyzing the interconnected production processes that span multiple countries

Answer

Examining the trade of finished goods between countries

Answer

Investigating the investment strategies of multinational corporations in developing economies

Answer

Studying the movement of labor across borders

Question 3

Which of the following is a key principle of economic liberalism?

Accepted Answer

Advocacy for free markets and minimal government intervention in the economy

Answer

Support for government regulation of the economy to promote social welfare

Answer

Endorsement of protectionist trade policies to safeguard domestic industries

Answer

Nationalization of key industries to ensure state control

Question 4

What is the primary role or function of the International Monetary Fund (IMF)?

Accepted Answer

Fostering international monetary cooperation and promoting financial stability

Answer

Providing loans and financial assistance to countries facing economic difficulties

Answer

Establishing global interest rates

Answer

Regulating the global banking system and preventing financial crises

Question 5

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

Accepted Answer

It operates in numerous countries across the world

Answer

It is a small enterprise with a local focus

Answer

Its decision-making authority is decentralized

Answer

It primarily operates within a single industry

Question 6

The World Trade Organization (WTO) is an international organization that focuses on:

Accepted Answer

Promoting free trade and resolving trade disputes

Answer

Setting international labor standards

Answer

Providing financial aid to developing nations

Answer

Enforcing environmental regulations globally

Question 7

The term 'globalization' primarily refers to:

Accepted Answer

The interconnectedness and interdependence of the world's economies

Answer

The spread of Western culture and values globally

Answer

The decline of national sovereignty

Answer

The emergence of a global middle class

Question 8

Which of the following is NOT a defining feature of economic globalization?

Accepted Answer

Increased cultural diversity

Answer

Increased free trade

Answer

Reduced government involvement in the economy

Answer

Increased global interconnectedness

Question 9

Which of the following is **not** a primary driver of economic globalization?

Accepted Answer

Nationalism and protectionism

Answer

Advancements in technology

Answer

Liberalization of political systems

Answer

Globalization of markets

Question 10

What is the "race to the bottom" in the context of economic globalization?

Accepted Answer

Competition between countries to attract FDI by offering lower taxes and wages

Answer

The decline in environmental standards in developing countries

Answer

The increased outsourcing of manufacturing jobs to low-cost countries

Answer

The rise of protectionist policies

Question 11

The World Trade Organization (WTO) primarily aims to:

Accepted Answer

Promote free and fair trade

Answer

Regulate international investment

Answer

Provide humanitarian aid to developing countries

Question 12

The process by which economic activities are organized across national borders is called:

Accepted Answer

Transnationalization

Answer

Internationalization

Answer

Multilateralism

Question 13

Which of the following is NOT a feature of economic globalization?

Accepted Answer

Economic isolationism

Answer

Increased interdependence between countries

Answer

Greater mobility of goods, services, and people

Answer

Reduced government regulation

Question 14

An example of a transnational corporation is:

Accepted Answer

Nestlé

Answer

BBC

Answer

United Nations

Question 15

The concept of 'globalization from below' refers to:

Accepted Answer

Economic globalization driven by grassroots movements

Answer

Increased transnational migration

Answer

The spread of cultural ideas across borders

Answer

The decline of nation-states

Question 16

Which of the following is an example of a non-governmental organization (NGO) involved in economic globalization?

Accepted Answer

Oxfam

Answer

International Monetary Fund (IMF)

Answer

United Nations Development Program (UNDP)

Answer

World Trade Organization (WTO)

Question 17

Explain the concept of 'embedded liberalism' and its significance in the evolution of economic globalization.

Accepted Answer

Embedded liberalism prioritizes state intervention to regulate economic globalization while safeguarding social welfare.

Answer

Embedded liberalism advocates for free trade without significant government involvement in the economy.

Answer

Embedded liberalism emerged in the 1990s as a reaction to the rise of neoliberalism.

Question 18

Which theory attributes economic globalization primarily to advances in technology?

Accepted Answer

Technological determinism

Answer

World-systems theory

Answer

Neoliberalism

Answer

Dependency theory

Question 19

How has economic globalization affected the role of nation-states?

Accepted Answer

Both weakened and strengthened state power in different ways

Answer

Weakened state sovereignty

Answer

Increased state power

Answer

Had no significant impact

Question 20

Which international organization plays a central role in promoting economic globalization?

Accepted Answer

World Trade Organization

Answer

United Nations

Answer

World Bank

Answer

International Monetary Fund

Question 21

What is the concept of 'glocalization' in the context of economic globalization?

Accepted Answer

The adaptation of global products and services to local markets

Answer

The emergence of global cities with distinct economic and cultural characteristics

Answer

The rise of transnational corporations operating across multiple countries

Answer

The spread of Western culture and values worldwide

Question 22

Which of the following is NOT a characteristic of economic globalization?

Accepted Answer

Strengthening of national borders

Answer

Increased trade and investment

Answer

Greater interdependence of national economies

Answer

Reduced government intervention

Question 23

How has economic globalization impacted international relations?

Accepted Answer

Increased both cooperation and conflict

Answer

Reduced the need for cooperation

Answer

Strengthened the power of nation-states

Answer

Eliminated the influence of non-state actors

Question 24

Which concept is crucial for understanding the relationship between trade and economic growth?

Accepted Answer

Comparative advantage

Answer

Absolute advantage

Answer

Mercantilism

Answer

Protectionism

Question 25

Which international organization plays a significant role in promoting economic globalization?

Accepted Answer

World Trade Organization

Answer

United Nations

Answer

North Atlantic Treaty Organization

Answer

European Union

Question 26

Which concept is key for understanding the relationship between investment and economic development?

Accepted Answer

Foreign direct investment

Answer

Gross domestic product

Answer

Capital flows

Answer

Balance of payments

Question 27

Which of the following is NOT a major aspect of economic globalization?

Accepted Answer

Health and education

Answer

Trade

Answer

Investment

Answer

Finance

Question 28

In the context of economic globalization, what are the ethical obligations of multinational corporations?

Accepted Answer

Consider the long-term social, economic, and environmental effects of their actions.

Answer

Prioritize profit maximization, disregarding social and environmental consequences.

Answer

Comply with local laws, even if they fall short of ethical standards.

Question 29

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

Accepted Answer

Cultural homogenization

Answer

Technological advancements

Answer

Trade liberalization

Answer

Increased foreign direct investment

Question 30

The World Trade Organization (WTO) primarily focuses on:

Accepted Answer

Promoting international trade

Answer

Regulating global finance

Answer

Monitoring human rights violations

Answer

Addressing climate change

Question 31

The process of a country becoming more integrated into the global economy is known as:

Accepted Answer

Globalization

Answer

Industrialization

Answer

Imperialism

Answer

Modernization

Question 32

Which of the following is a characteristic of a globalized economy?

Accepted Answer

Interdependence of national economies

Answer

National isolationism

Answer

Limited cross-border trade

Question 33

The term 'neoliberalism' in relation to economic globalization refers to:

Accepted Answer

Free market principles

Answer

Environmental sustainability

Answer

Government interventionism

Answer

Social protectionism

Question 34

The concept of 'global governance' in the context of economic globalization refers to:

Accepted Answer

International cooperation to manage global economic issues

Answer

The dominance of one nation's economic policies

Answer

The absence of international regulation

Question 35

Which of the following is NOT a defining characteristic of economic globalization?

Accepted Answer

Increased protectionist trade policies

Answer

Growth of multinational corporations

Answer

Integration of global financial markets

Answer

Increased cross-border trade and investment

Question 36

The 'race to the bottom' phenomenon, often linked to economic globalization, refers to:

Accepted Answer

Countries lowering labor and environmental standards to attract foreign investment.

Answer

The increasing dominance of global corporations over national governments.

Answer

The decline in global trade due to rising protectionist measures.

Answer

Competition among nations for access to global markets.

Question 37

The World Trade Organization (WTO) plays a key role in economic globalization by:

Accepted Answer

Setting rules for international trade and resolving trade disputes.

Answer

Regulating global financial markets.

Answer

Promoting sustainable development practices across the globe.

Answer

Providing financial aid to developing countries.

Question 38

Which of the following is NOT a potential benefit of economic globalization for developing countries?

Accepted Answer

Increased dependence on developed nations.

Answer

Expanded export markets and economic growth.

Answer

Job creation and improved living standards.

Answer

Access to foreign investment and technology.

Question 39

The 'Washington Consensus' is a set of economic policies often associated with:

Accepted Answer

Neoliberal economic reforms aimed at promoting globalization.

Answer

Socialist economic policies promoting state ownership and control.

Answer

Environmental regulations and sustainable development practices.

Answer

Protectionist trade policies and government intervention in the market.

Question 40

The concept of 'global value chains' refers to:

Accepted Answer

The interconnected production processes across different countries for a single product.

Answer

The rise of global financial institutions like the IMF and World Bank.

Answer

The global distribution of goods and services through international trade.

Answer

The increasing influence of multinational corporations on national economies.

Question 41

How can economic globalization impact the sovereignty of nation-states?

Accepted Answer

It can limit national policy autonomy due to international agreements and market forces.

Answer

It has no significant impact on national sovereignty.

Answer

It enhances national sovereignty by empowering states to control their economies.

Answer

It strengthens national sovereignty by promoting economic interdependence.

Question 42

Which of the following is an example of a potential conflict that could arise from economic globalization?

Accepted Answer

Trade wars between countries due to protectionist policies.

Answer

Increased cooperation on environmental issues.

Answer

The global convergence of cultural norms and practices.

Answer

The spread of democratic values and human rights.

Question 43

The 'Bretton Woods system' refers to:

Accepted Answer

A post-World War II agreement that established the IMF and World Bank to regulate global finance.

Answer

A system of free trade agreements between Western European nations.

Answer

A global currency system based on the gold standard.

Answer

A set of environmental protocols to protect the global ecosystem.

Question 44

How can the principles of 'fair trade' contribute to a more equitable economic globalization?

Accepted Answer

By promoting ethical sourcing, fair wages, and sustainable practices in global trade.

Answer

By supporting the deregulation of global financial markets.

Answer

By encouraging free trade and minimal government intervention.

Answer

By increasing the power of multinational corporations in global markets.