Global Economic Issues: Globalization, Development, and International Organizations

Question 1

The World Bank's primary objective is to:

Accepted Answer

Foster economic development in developing nations

Answer

Regulate international trade

Answer

Manage global currency reserves

Answer

Resolve international business disputes

Question 2

Which of the following is a potential drawback of globalization?

Accepted Answer

Job displacement

Answer

Increased economic growth

Answer

Preservation of cultural diversity

Answer

Technological advancements

Question 3

The IMF's main function is to:

Accepted Answer

Provide financial assistance to economies facing difficulties

Answer

Establish global economic policies

Answer

Monitor international trade flows

Answer

Negotiate bilateral trade agreements

Question 4

Which factor has NOT significantly contributed to the process of globalization?

Accepted Answer

Political stability

Answer

Technological advancements

Answer

Trade liberalization

Answer

Foreign direct investment

Question 5

The concept of 'comparative advantage' suggests that:

Accepted Answer

Countries should specialize in producing and exporting goods and services where they are most efficient

Answer

Countries should aim to be self-sufficient and produce everything they consume

Answer

Free trade always leads to a win-win situation for all countries involved

Answer

Globalization is inevitably harmful to developing countries

Question 6

The term 'globalization' refers to:

Accepted Answer

The increasing interconnectedness and interdependence of the world's economies, cultures, and societies

Answer

The spread of Western culture and values

Answer

The process of creating a single global government

Answer

The decline of nation-states

Question 7

How does technology impact the global economy according to 'hyperglobalization' theory?

Accepted Answer

It is a key driver.

Answer

It plays a minor role.

Answer

It has no significant effect.

Answer

It has a negative impact.

Question 8

What is the significance of international cooperation in tackling interconnected global economic challenges?

Accepted Answer

Facilitate knowledge sharing and collaborative problem-solving

Answer

Provide financial assistance to developing nations

Answer

Impose economic sanctions on countries violating international norms

Question 9

The World Bank primarily focuses on:

Accepted Answer

Promoting economic development and reducing poverty

Answer

Maintaining global financial stability

Answer

Resolving international trade disputes

Answer

Providing humanitarian aid in disaster zones

Question 10

Which of the following is a widely used measure of economic inequality?

Accepted Answer

Gini coefficient

Answer

Human Development Index

Answer

GDP per capita

Answer

Purchasing Power Parity

Question 11

The 'Washington Consensus' refers to a set of policies that primarily promotes:

Accepted Answer

Free trade and privatization

Answer

Government intervention in the economy

Answer

Social welfare programs

Answer

Restrictions on foreign investment in developing countries

Question 12

Which of the following is the primary function of the World Bank?

Accepted Answer

Providing loans and grants to developing countries

Answer

Regulating the global financial system

Answer

Promoting international trade and investment

Answer

Reducing poverty and improving living standards

Question 13

Which of the following is NOT a responsibility of the International Monetary Fund (IMF)?

Accepted Answer

Regulating international trade

Answer

Providing loans to nations experiencing financial crises

Answer

Surveying and analyzing the global economy

Answer

Promoting currency exchange rate stability

Question 14

Examine the challenges faced by developing countries in integrating into the globalized economy and propose feasible solutions to address these hurdles.

Accepted Answer

Enhance competitiveness through infrastructure development and education investments to attract foreign investment and foster a skilled workforce.

Accepted Answer

Promote economic growth by reducing trade barriers to expand market access, stimulate exports, and diversify the economy.

Accepted Answer

Provide financial assistance, technical expertise, and capacity-building programs to support developing countries' integration efforts.

Answer

Limit the influence of multinational corporations to prevent exploitation and protect domestic industries.

Question 15

Globalization has led to increased interdependence among countries. Which of the following statements accurately reflects one of the benefits of this interdependence?

Accepted Answer

Access to wider markets for businesses

Answer

Reduced economic growth

Answer

Increased isolationism

Answer

Decreased specialization and division of labor

Question 16

The World Bank is an international organization that provides financial assistance and technical expertise to developing countries. What is its primary objective?

Accepted Answer

To promote economic development and reduce poverty

Answer

To maintain international peace and security

Answer

To regulate global trade

Answer

To provide humanitarian aid in emergencies

Question 17

Which of the following is a potential challenge posed by globalization?

Accepted Answer

Increased income inequality

Answer

Enhancement of political stability

Answer

Improvement of living standards for all

Answer

Increased cultural homogenization

Question 18

The IMF is primarily responsible for:

Accepted Answer

Monitoring global economic growth and stability

Answer

Enforcing environmental regulations

Answer

Negotiating international trade agreements

Answer

Providing humanitarian aid to disaster-stricken areas

Question 19

Which of the following is a measure that governments can use to foster economic growth?

Accepted Answer

Investing in education and infrastructure

Answer

Devaluing the currency

Answer

Imposing import quotas

Answer

Raising taxes on businesses

Question 20

The process of globalization has:

Accepted Answer

Both positive and negative implications for economic development

Answer

Only negative effects on economic development

Answer

Only positive effects on economic development

Question 21

Increased trade protectionism can potentially lead to:

Accepted Answer

Slower economic growth and higher prices for consumers

Answer

Increased economic growth and more job opportunities

Answer

Improved environmental protection and increased innovation

Question 22

The United Nations Conference on Trade and Development (UNCTAD) primarily focuses on:

Accepted Answer

Promoting trade and development in developing countries

Answer

Maintaining international peace and security

Answer

Regulating global financial markets

Question 23

A key characteristic of a globalized economy is:

Accepted Answer

Increased flows of goods, services, and capital across borders

Answer

Declining importance of trade unions

Answer

Reduced government regulation and intervention

Question 24

The World Trade Organization (WTO) plays a crucial role in:

Accepted Answer

Establishing and enforcing rules for international trade

Answer

Providing loans and grants to developing countries

Answer

Monitoring global economic growth and stability

Answer

Enforcing environmental regulations