#1
Which of the following is NOT a characteristic of globalization?
Decreased international trade
ExplanationGlobalization typically involves increased international trade.
#2
What does GDP stand for?
Gross Domestic Product
ExplanationGDP measures the total economic output of a country.
#3
Which of the following is a key driver of globalization?
Advancements in communication technology
ExplanationImproved communication facilitates global connections and trade.
#4
What is the main purpose of the World Trade Organization (WTO)?
To facilitate international trade
ExplanationThe WTO aims to regulate and promote global trade.
#5
What is the Bretton Woods Agreement?
A monetary system established after World War II
ExplanationIt established rules for commercial and financial relations.
#6
Which of the following is NOT a major currency in the foreign exchange market?
Peso
ExplanationThe peso is not widely traded compared to major currencies.
#7
What is offshoring in the context of global economics?
Transferring business processes to another country
ExplanationCompanies relocate operations to take advantage of lower costs.
#8
What is the primary purpose of the International Monetary Fund (IMF)?
To provide loans to developing countries
ExplanationThe IMF aids countries facing balance of payment problems.
#9
Which country is considered to be the world's largest exporter?
China
ExplanationChina leads in exporting goods globally.
#10
Which economic theory emphasizes the importance of government intervention in international trade?
Mercantilism
ExplanationMercantilism advocates for state control over trade for national benefit.
#11
What is the Triffin dilemma?
A challenge regarding the role of the US dollar as the world's primary reserve currency
ExplanationIt's a conflict between domestic and international monetary objectives.
#12
Which economic concept suggests that as countries develop, their economies will shift from primarily agricultural to industrial and then to service-based?
Modernization theory
ExplanationModernization theory explains the evolution of economies.
#13
What is the term used to describe the phenomenon where a small change in one part of the world can have significant effects elsewhere?
Butterfly effect
ExplanationThe butterfly effect illustrates how interconnected systems respond.
#14
Which term refers to the process of reducing or eliminating trade barriers between countries?
Liberalization
ExplanationLiberalization aims to promote free trade by removing restrictions.