#1
Which of the following best defines economic globalization?
The process of integrating national economies into the international economy through trade, investment, and capital flows.
The policy of isolating a country's economy from the rest of the world.
The process of decentralizing economic activities within a country.
The policy of limiting international trade to protect domestic industries.
#2
Which organization is primarily responsible for setting rules for international trade?
International Monetary Fund (IMF)
World Health Organization (WHO)
World Trade Organization (WTO)
United Nations (UN)
#3
What is the main purpose of trade liberalization?
To restrict international trade
To increase barriers to entry for foreign companies
To promote free trade and reduce barriers to international trade
To regulate international trade through tariffs and quotas
#4
Which of the following is NOT a potential benefit of economic globalization?
Increased access to a wider variety of goods and services
Enhanced economic growth and development
Greater income equality among nations
Technological advancements and innovation
#5
Which of the following is a characteristic of a floating exchange rate system?
Central banks intervene to fix the value of their currency relative to other currencies.
Exchange rates are determined by market forces of supply and demand.
Countries form a currency union and adopt a common currency.
Exchange rates are fixed to a specific value against another currency.
#6
What is the primary goal of the World Bank?
To promote international trade and economic cooperation
To provide financial assistance for developing countries
To regulate global financial markets
To establish and enforce trade agreements
#7
Which of the following best describes the concept of 'offshoring'?
The practice of relocating a company's production or services to a foreign country.
The process of selling goods and services to another country.
The establishment of trade agreements between two or more countries.
The imposition of restrictions on imports to protect domestic industries.
#8
What does the term 'comparative advantage' refer to in international trade?
The ability of a country to produce a good at a lower opportunity cost than another country.
The ability of a country to produce a good with fewer resources than another country.
The ability of a country to produce a good without relying on imports.
The ability of a country to export more goods than it imports.
#9
Which of the following is an example of a trade barrier?
Tariff
Free trade agreement
Comparative advantage
Trade surplus
#10
What is the name of the economic theory that suggests each country should specialize in the production of goods and services that it can produce most efficiently?
Mercantilism
Protectionism
Absolute advantage
Comparative advantage
#11
Which international agreement aims to reduce greenhouse gas emissions and combat climate change?
Paris Agreement
Kyoto Protocol
Montreal Protocol
Copenhagen Accord
#12
Which of the following is NOT a factor that influences comparative advantage?
Labor productivity
Natural resources
Government regulations
Technological advancements
#13
What does the term 'dumping' refer to in the context of international trade?
The process of exporting goods at a price lower than their production cost.
The practice of imposing tariffs on imported goods.
The establishment of trade barriers to protect domestic industries.
The formation of a customs union between two or more countries.
#14
Which economic theory argues that a nation should export more than it imports in order to build wealth and power?
Absolute advantage
Comparative advantage
Mercantilism
Protectionism
#15
What is the Triffin dilemma?
A situation where a country's currency is overvalued relative to other currencies.
A conflict of interest between short-term domestic objectives and long-term international objectives.
The difficulty of simultaneously achieving both internal and external balance in the international monetary system.
The risk of relying on a single reserve currency in the international monetary system.
#16
What is the term used to describe the difference between a country's exports and imports?
Trade balance
Current account
Balance of payments
Trade deficit
#17
Which of the following is an example of a non-tariff barrier to trade?
Import quotas
Value-added tax (VAT)
Export subsidies
Ad valorem tariff
#18
In the context of international trade, what does the term 'tariffication' refer to?
The process of reducing tariffs on imported goods.
The conversion of non-tariff barriers into tariffs.
The imposition of quotas on imports.
The negotiation of trade agreements between countries.
#19
Which of the following is a consequence of economic globalization?
Increased income inequality
Decreased competition
Decreased access to foreign markets
Increased trade barriers