Final Flashcards
The concept of international trading is a
modern-day creation. T/F
F
The Silk Road as a trading route was not
global in scope because it did not cross any
ocean. T/F
T
The Galleon Trade was the first trading
route which connected the Americas with
Asia and the rest of the world. T/f
T
When European nations began trading in
the 16th century, they employed protectionist
policies. T/f
T
The Galleon Trade was part of the age of
capitalism. T/f
F(mercantilist)
During the Mercantilist era, currencies
were based on the gold standard. T/F
T
The Great Depression was worst and
longest crisis experienced by Western
world. T/f
T
Keynesian economics believe that crises
occur when money is not being spent,
thereby, not moving. T/f
T
The active role of governments in managing spending served as the anchor of global Keynesian system. T/f
T
The main purpose of the GATT was to
impose high tariffs and other hindrances to
free trade. T/f
F (lower tariffs)
Western countries opposed the rise in prices during the Keynesian era as it resulted to a recession. T/f
F
During the Keynesian era, economies chose to practice austerity measures, policies which led to economic downturn.
T/f
F
The 1970s Arab Oil Embargo aided Western Countries which were friends with Arab countries. T/f
F
Laissez-faire advocates believe government intervention in economies distort the proper functioning of the market. T/f
T
The Washington Consensus advocated
minimal government spending to reduce
government debt. T/f
T
Neoliberalism called for privatization of government-controlled corporations believing a free market can produce economic prosperity. T/f
T
The privatization of industries post-Communist Russia succeeded in freeing the industries from corrupt bureaucrats. T/f
F
The 2008 recession came about because banks became less discriminating in issuing loans granting them even to people who had had no capacity to pay their loans back. T/f
T
The banking crisis in the US in 2008-2009 spread around the world. T/f
T
The Philippines was not severely affected by the 2008-2009 crisis because our economy is bigger than that of the United States’. T/f
F
The austerity measures imposed by lenders on Greece led to high growth and high employment. T/f
F
The $787 billion stimulus package approved by Congress led the US to recover fast from the recession. T/f
T
The 2008-2009 economic crisis in Europe sparked political upheavals causing far-right parties to win in elections. T/f
T
Experts say it is still possible for the world to backtrack and close economies to world trade.
T
Today, Third World economies account for a majority of global exports. T/f
T
Even under WTO regulations, many developed countries like Japan have remained protectionists. T/f
T
Governments of Third World countries have benefited the most under the open trade system. T/f
F
Subsidies given by foreign governments to their producers led to the collapse of many local industries in poor countries. T/f
T
The economic might of rich nations enabled them to dodge WTO regulations to the detriment of poor nations. T/f
T
Faced with protectionist policies from powerful countries, poorer countries can do very little to make economic globalization more just. T/f
T
It was the oldest international trading route.
Silk road
The Galleon Trade linked Acapulco in Mexico with this Asian city.
Manila
