#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.
ExplanationIntegration of national economies through international trade and investment.
#2
Which organization is primarily responsible for setting rules for international trade?
World Trade Organization (WTO)
ExplanationWTO sets rules governing global trade.
#3
What is the main purpose of trade liberalization?
To promote free trade and reduce barriers to international trade
ExplanationPromotion of free trade by reducing barriers.
#4
Which of the following is NOT a potential benefit of economic globalization?
Greater income equality among nations
ExplanationEconomic globalization doesn't necessarily lead to income equality.
#5
Which of the following is a characteristic of a floating exchange rate system?
Exchange rates are determined by market forces of supply and demand.
ExplanationExchange rates determined by market.
#6
What is the primary goal of the World Bank?
To provide financial assistance for developing countries
ExplanationProviding financial aid to developing nations.
#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.
ExplanationRelocating production or services to foreign country.
#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.
ExplanationCountry's ability to produce goods at lower opportunity cost.
#9
Which of the following is an example of a trade barrier?
Tariff
ExplanationTariff is a trade barrier.
#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?
Comparative advantage
ExplanationSpecialization in efficient production.
#11
Which international agreement aims to reduce greenhouse gas emissions and combat climate change?
Paris Agreement
ExplanationAgreement to combat climate change.
#12
Which of the following is NOT a factor that influences comparative advantage?
Government regulations
ExplanationGovernment regulations don't affect comparative advantage.
#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.
ExplanationExporting goods below production cost.
#14
Which economic theory argues that a nation should export more than it imports in order to build wealth and power?
Mercantilism
ExplanationAdvocates exporting more than importing.
#15
What is the Triffin dilemma?
The difficulty of simultaneously achieving both internal and external balance in the international monetary system.
ExplanationChallenge of balancing international monetary system.
#16
What is the term used to describe the difference between a country's exports and imports?
Trade balance
ExplanationDifference between exports and imports.
#17
Which of the following is an example of a non-tariff barrier to trade?
Import quotas
ExplanationRestriction on quantity of imports.
#18
In the context of international trade, what does the term 'tariffication' refer to?
The conversion of non-tariff barriers into tariffs.
ExplanationConversion of non-tariff barriers to tariffs.
#19
Which of the following is a consequence of economic globalization?
Increased income inequality
ExplanationEconomic globalization leads to increased income inequality.