Economic Globalization: Impact on International Relations

Question 1

Which of the following is **not** an argument in favor of free trade?

Accepted Answer

Enhanced environmental protection

Answer

Lower consumer prices

Answer

Stimulated economic growth and innovation

Answer

Strengthened international relations

Question 2

What is the term used to describe the movement of capital across borders in pursuit of higher returns?

Accepted Answer

Portfolio investment

Answer

Foreign direct investment

Answer

Remittances

Answer

Eurobonds

Question 3

Which of the following is **not** a key factor that has contributed to the growth of economic globalization?

Accepted Answer

Increased government intervention

Answer

Technological advancements

Answer

Political liberalization

Answer

Reduced transportation costs

Question 4

What is the term used to describe the relocation of business operations to countries with lower production costs?

Accepted Answer

Offshoring

Answer

Outsourcing

Answer

Globalization

Answer

Internationalization

Question 5

Which defining characteristic is central to economic globalization?

Accepted Answer

Increased interconnectedness of economies

Answer

Reduced significance of international organizations

Answer

Uniformity of diverse cultures

Answer

Elimination of national borders

Question 6

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

Accepted Answer

Increased government regulation of economic activity

Answer

Increased interdependence of national economies

Answer

Growing influence of multinational enterprises

Answer

Reduced barriers to international trade and investment

Question 7

The impact of economic globalization on developing countries has been:

Accepted Answer

Mixed, with both positive and negative effects depending on the specific country and context

Answer

Unquestionably positive, leading to economic growth and poverty reduction

Answer

Unquestionably negative, increasing vulnerability to external shocks and exploitation

Answer

Negligible, with little to no impact on developing countries

Question 8

Which international agreement aims to reduce trade barriers and promote cooperation among member countries?

Accepted Answer

General Agreement on Tariffs and Trade

Answer

Kyoto Protocol

Answer

Montreal Protocol

Answer

Paris Agreement

Question 9

Identify the characteristic of economic globalization that does NOT belong:

Accepted Answer

Protectionist policies

Answer

Interdependence of global economies

Answer

Increased trade and investment

Answer

Rapid technological advancements

Question 10

What is the appropriate term to describe a country experiencing a trade deficit?

Accepted Answer

Current account deficit

Answer

Balance of trade

Answer

Balance of payments

Answer

Capital account deficit

Question 11

Identify the option that is NOT a measure of economic globalization:

Accepted Answer

Government spending

Answer

Foreign direct investment

Answer

Cross-border trade

Answer

Migration

Question 12

What term describes the process of integrating national economies into the global economy?

Accepted Answer

Globalization

Answer

Interdependence

Answer

Liberalization

Answer

Deregulation

Question 13

Which theory argues that economic globalization perpetuates and intensifies global inequalities?

Accepted Answer

Dependency theory

Answer

Neoliberal theory

Answer

Modernization theory

Answer

World-systems theory

Question 14

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

Accepted Answer

To promote free trade and reduce barriers

Answer

To regulate global trade and settle disputes

Answer

To provide financial aid to developing countries

Answer

To coordinate international trade policies

Question 15

What is the term for the exchange of goods, services, and capital across borders?

Accepted Answer

International trade

Answer

Foreign direct investment

Answer

Remittances

Answer

Capital flows

Question 16

What is the term for the relocation of business operations to countries with lower production expenses?

Accepted Answer

Offshoring

Answer

Outsourcing

Answer

Relocation

Answer

Globalization

Question 17

The World Trade Organization (WTO) is an international organization that primarily aims to:

Accepted Answer

Regulate international trade

Answer

Promote economic development

Answer

Establish global monetary policies

Answer

Resolve political conflicts

Question 18

The term 'global value chain' refers to:

Accepted Answer

The sequence of production and distribution processes of a good or service across multiple countries

Answer

The total value of goods and services produced worldwide

Answer

The network of interconnected companies engaged in international trade

Answer

The barriers that restrict cross-border trade

Question 19

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

Accepted Answer

The belief that free market principles should guide economic decisions

Answer

The promotion of protectionist policies

Answer

The rejection of economic integration

Answer

The emphasis on government intervention in the economy

Question 20

The World Trade Organization (WTO) is primarily responsible for:

Accepted Answer

Facilitating and regulating global trade

Answer

Providing humanitarian aid to developing nations

Answer

Monitoring and enforcing environmental standards

Answer

Resolving international political disputes

Question 21

'Comparative advantage' in international trade refers to:

Accepted Answer

Specializing in producing and exporting goods where a country has the lowest opportunity cost

Answer

Aiming to produce everything domestically to avoid imports

Answer

Assuming that trade is always mutually beneficial

Answer

Imposing high tariffs and other trade barriers to protect domestic industries

Question 22

How does economic globalization impact the distribution of wealth and living standards both between and within countries?

Accepted Answer

Economic globalization can worsen existing inequalities and create new disparities in wealth and living standards.

Answer

Economic globalization leads to a fairer distribution of wealth and living standards.

Answer

Economic globalization has no significant effect on the distribution of wealth and living standards.

Question 23

Which of the following is a defining characteristic of economic globalization?

Accepted Answer

Growing interdependence of national economies through trade, finance and technology

Answer

Absence of international trade and cross-border investments

Answer

Isolation of countries from global markets

Answer

Dominance of local industries over multinational corporations

Question 24

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

Accepted Answer

Reduced cultural diversity due to increased homogenization

Answer

Access to a wider range of goods and services

Answer

Improved living standards in some regions

Answer

Increased economic growth opportunities for developing countries

Question 25

What is the term used to describe the exchange of goods, services, and capital across borders?

Accepted Answer

International trade

Answer

Regional integration

Answer

Domestic commerce

Answer

Cultural exchange

Question 26

Which international organization is responsible for promoting global trade and reducing barriers?

Accepted Answer

World Trade Organization (WTO)

Answer

United Nations (UN)

Answer

International Monetary Fund (IMF)

Question 27

What is a key challenge posed to nation-states by the increasing interconnectedness of economies through economic globalization?

Accepted Answer

Erosion of national sovereignty due to the influence of global markets and international organizations

Answer

Elimination of cultural differences

Answer

Lack of access to advanced technology

Answer

Rise of isolationist policies

Question 28

Which factor has been a major driver behind the increased globalization of economies?

Accepted Answer

Advancements in transportation and communication technology

Answer

Increased government regulations on trade

Answer

Political isolationism

Question 29

What is the term for the process whereby countries become increasingly interdependent economically?

Accepted Answer

Economic integration

Answer

Trade liberalization

Answer

Economic divergence

Answer

Global convergence

Question 30

Which of the following is a potential consequence of economic globalization for developing countries?

Accepted Answer

Increased income inequality within and between countries

Answer

Reduced poverty levels in all countries

Answer

Improved healthcare systems in all regions

Answer

Guaranteed economic growth for all countries

Question 31

What is a defining characteristic of a multinational corporation (MNC)?

Accepted Answer

Operates business activities in multiple countries

Answer

Limited influence on the global economy

Answer

Exclusively exports goods and services without foreign operations

Answer

Small business size

Question 32

Which of the following is a proposed solution to address the challenges of economic globalization?

Accepted Answer

International cooperation and regulation to ensure fair trade practices and minimize negative impacts

Answer

Isolation from the global economy through protectionist policies

Answer

Increased protectionism and trade barriers

Answer

Elimination of international organizations and agreements

Question 33

Which of the following is a key feature of economic globalization?

Accepted Answer

Increased interconnectedness of economies

Answer

Limited flow of goods and services across borders

Answer

Isolation of national economies

Answer

Reduced interdependence of governments

Question 34

Which of the following is considered a potential benefit of economic globalization?

Accepted Answer

Reduced poverty in developing countries

Answer

Exploitation of workers in developing countries

Answer

Increased unemployment in developed countries

Answer

Increased cultural homogeneity

Question 35

The primary mandate of the World Trade Organization (WTO) is to:

Accepted Answer

Promote free trade and reduce trade barriers

Answer

Enforce environmental regulations

Answer

Provide humanitarian aid

Answer

Regulate the financial sector

Question 36

Which of the following is a challenge associated with economic globalization?

Accepted Answer

Increased inequality within countries

Answer

Increased economic growth

Answer

Increased access to education

Answer

Improved technological innovation

Question 37

The term 'neoliberalism' in the context of economic globalization refers to:

Accepted Answer

A belief in the superiority of free markets and limited government intervention

Answer

An emphasis on environmental protection

Answer

A focus on social welfare programs

Question 38

The International Monetary Fund (IMF) plays a crucial role in:

Accepted Answer

Providing financial assistance to countries facing economic crises

Answer

Negotiating trade agreements

Answer

Promoting environmental sustainability

Question 39

Which of the following is an example of a global supply chain?

Accepted Answer

A computer manufactured in China with components from multiple countries

Answer

A handmade craft made in a local workshop

Answer

A car produced entirely in one country

Question 40

The concept of 'race to the bottom' in the context of economic globalization refers to:

Accepted Answer

Competition among countries to attract foreign investment by lowering labor standards and environmental regulations

Answer

The increasing concentration of wealth in the hands of a few individuals