SUMMATIVE TEST Flashcards
Globalization refers to:
A more integrated and interdependent world
Which one of the following is a push factor in emigration
War
Which of the following do NOT facilitate globalization?
Barriers to trade and investment
Which of the following constitutes Foreign Direct Investment? *
A UK energy company buying territory abroad where it expects to find oil reserves
. Which of the following could be defined as a multinational company?
A firm owning a chain of supermarket outlets outside its country of origin
Which of the following is a driver of globalization? *
Technological advance
Globalization is beneficial for firms because: *
It opens up new market opportunities
The internet facilitates globalization by: *
Cutting the cost for firms of communicating across borders
What might western food MNCs encounter when launching operations in Africa or the Middle East?
. Corruption
Globalization can create problems for business because:
It can result in more competition
The past two decades of globalization has seen rapid movements in
Goods, services and investments between countries
The most common route for investments by MNCs in countries around the world is to: *
Buy existing local companies
. Set up new factories
Globalization has led to higher standards of living o
Well-off consumers
A company that owns or controls production in more than one nation is called:
Multinational corporation
Where do MNCs choose to set up production?
Cheap labor resources
. Trade between countries: *
Determines prices of products in different countries
Globalization by connecting countries leads to:
Greater competition among producers
One major factor that has stimulated the globalization process is:
Rapid improvement in technology
If tax is imposed on Chinese toys, what will happen?
Indian toy-makers will prosper
Which out of the following is an example of a trade barrier? *
Tax on imports
Removing barriers or restrictions set by the government is called:
Liberalization
WTO aims at:
Liberalizing international trade
Which out of the following industries has a large number of well-off buyers in urban areas? *
Automobiles
. Globalization has created new opportunities of:
A. Employment B. Emerging multinationals C. Providing services D. All of the above (D)
One major government initiative to attract foreign companies to invest in India is: *
To build special economic zones
Globalization has posed major challenges for:
Small producers
With the growing competition, most employers these days prefer to employ workers: *
Flexible
. Globalization opportunities for paid work for women has denied them: *
Permanent job
Fair globalization would mean
A. Fair opportunities for all B. Fair benefits for all C. More support to small producers D. All of the above DDD
. Government can make globalization more ‘fair’ by:
Implementing the labor laws
TRUE OR FALSE Globalization refers to the shift toward a more integrated and interdependent world economy *
TRUE
TRUE OR FALSE
Tastes and preferences of consumers in different nations are beginning to converge on some global norm. *
TRUE
TRUE OR FALSE
. A company has to be a major multinational corporation to facilitate, and benefit from, the globalization of markets. *
FALSE
TRUE OR FALSE
. In Germany, 98 percent of small and midsize companies have exposure to international markets. *
A. TRUE
TRUE OR FALSE
Currently, the most global of markets are for industrial goods and materials that serve a universal need the world over. *
A. TRUE
TRUE OR FALSE
As firms follow each other around the world, greater diversity replaces uniformity *
B. FALSE
TRUE OR FALSE
Substantial impediments such as barriers to foreign direct investment make it difficult for firms to achieve the optimal dispersion of their productive activities to locations around the globe *
TRUE
TRUE OR FALSE
GATT stands for the General Agreement on Tariffs and Trade *
A. TRUE
TRUE OR FALSE
. As of 2008, 149 nations, which collectively accounted for 90 percent of world trade, were WTO members *
B. FALSE
TRUE OR FALSE
The United Nations and the World Bank were both created in 1944 by 44 nations that met at Breton Woods, New Hampshire *
B. FALSE
What is the role of the IMF?
It observes world exchange rates, balance of payments and multilateral payments
. What is the IMF’s primary objective? *
. The overall promotion of world trade
The functions of the International Monetary Fund include all of the following except:
To serve as the world central bank
What was the agreement for Bretton Woods System? *
A. Fixed Exchange Rate B. US Dollar as reserve currency C. US dollar was pegged to gold at $35 an ounce D. All of the above DDD
Which were the two institutions that were instituted during the Bretton Woods System era?
International Monetary Fund and World Bank
What international institution was not part of the Bretton Woods system at its creation?
The United Nations
In 1995 the GATT became *
. The World Trade Organization (WTO)
What can be seen as both a “reaction against” and a “product of” globalization? *
A. Nationalism
The process by which a state interacts with the global system of states is called *
B. . The foreign policy process
Nationalism has served as an important component of state building and for the formation of __________ within societies. *
B. A common identity and consciousness.
The government officials who use mass culture and mass media to send messages are: *
D. . “Conducting public diplomacy.”
The World Bank was originally the International Bank of Reconstruction and Development that was initially tasked with which of the following? *
A. Facilitating private investment and reconstruction
The WTO replaced which organization *
C. GATT
. In 1947 which organization became the forum for negotiations on trade liberalization? *
B. GATT
are becoming increasingly important in the development and codification of international legal norms *
Nation-States
The International Court of Justice is based in: *
B. . The Hague, the Netherlands
The Organization of American States (OAS) and the Association of Southeast Asian Nations (ASEAN) are examples of *
B. Regional organizations
International law is an example of a/an: *
International organization
At the International Court of Justice *
A. States may sue states
The government policy of discouraging imports through the imposition of tariffs and non-tariff barriers is called: *
B. Protectionism
TRUE OR FALSE
. Global income inequality is decreasing between rich and poor countries *
FALSE
TRUE OR FALSE
World Bank definitions of poverty initially valued social well-being over material standards. *
FALSE
TRUE OR FALSE
A “New World Social Contract” is currently being implement by the IMF and World Bank. *
FALSE
TRUE OR FALSE
Regions are considered open when the member countries are democracies *
FALSE
TRUE OR FALSE
Globalization has often been accompanied by decreased levels of debt, poverty, and exclusion *
FALSE
TRUE OR FALSE
International organizations are exclusively for states. *
FALSE
TRUE OR FALSE
Greenpeace is an intergovernmental organization *
FALSE
TRUE OR FALSE
. The North American Free Trade Agreement is an example of a regional organization. *
FALSE
TRUE OR FALSE
The “Clash of Globalizations” is between corporations and social movements. *
FALSE
TRUE OR FALSE
A positive implication of diversity in the global era is the appropriation of cultural customs, clothes, and jewellery. *
FALSE
TRUE OR FALSE
. Democracy is a component of a state. *
FALSE
TRUE OR FALSE
There has been a globalization of culture. *
TRUE
TRUE OR FALSE
In the era of globalization, many different kinds of cultural flows transcend borders. *
TRUE
TRUE OR FALSE
Bretton Woods was an explicitly United States-centered system. *
TRUE
TRUE OR FALSE
Regionalization enhances interdependence, which in turn makes weaker partners more vulnerable to the demands of the stronger partner. *
TRUE
TRUE OR FALSE
The urbanization of poverty is expected to increase *
TRUE
TRUE OR FALSE
. The United Nations is the only universal governance system. *
FALSE
TRUE OR FALSE
The United States never became a member of the League of Nations *
TRUE
TRUE OR FALSE
The victims of terrorism are not the primary target of the violence. *
TRUE
TRUE OR FALSE
Peru has accepted the NAFTA model of regionalization. *
TRUE
A migrant is: *
C. Moves to a new country in search of better economic opportunities
feel that international exchange is shaped by exploitation of labour and resources; economic interests drive political policies. *
A. Socialists
In the world system, extraction regions are called the: *
A. Periphery
In Marxist terminology, workers who must sell their labour power in order to survive are referred to as : *
D. The Proletariat
The newly independent state of El Salvador was oriented toward the primary export of *
A. Coffee
. In the world-system, the regions which mostly manufacture goods are referred to as the: *
C. Core
The class of people in Marxist analysis who usually see the world from the perspective of the rich, but sometimes advocate for the poor is the : *
D. Intellectuals
. Which international organization has helped women in the global South obtain loans on favourable terms to start up businesses? *
D. UNICEF
The _____ consists of European Community member state leaders and meets twice a year, whereas the _____ adjudicates disputes that arise under EU law. *
D. European Council, Court of Justice
. A unified set of tariffs with regard to imports occurs: *
A. A Customs Union
Which country is a member of the Andean Common Market? *
D. Peru
. The institution which implements the policies of the EU is the: *
A. European Commission
The institution which makes the major policy decisions of the EU is the: *
B. Council of Ministers
The Single European Act called for the creation of a common market in Europe by the end of *
C. 1992
The European Free Trade Association: *
C. Includes EU members and four non-EU members
The integration of similar facts and ideas on an international basis that is being facilitated by the telecommunications revolution is leading to the phenomenon of a: *
A. Global culture
. It is the process of political integration following economic integration for practical purposes. *
B. Spillover
The all-news satellite TV network, Al Jazeera, is based in which Middle Eastern state? *
A. Qatar
Which of the following is not a member of the G-7 states? *
D. The Netherlands
. The state in which an MNC has its headquarters is called the: *
A. Home country
The Exchange Rate Mechanism is: *
C. An attempt by the European Union to approximate fixed exchange rates
Between World War II and the 1970s, what type of exchange rates existed in the international economic system? *
A. Fixed
________policy is government decisions about spending and taxation. *
C. Fiscal
. Currency speculators sold off the currency of ______ and other countries that created the 1997 Asian financial crisis. *
A. Indonesia
. A ______ is responsible for maintaining the value of a state’s currency to the extent that it can by limiting the amount of money printed and avoiding inflation. *
C. Central bank
What type of currency can be readily converted to leading world currencies? *
B. Hard currency
What institution coordinates international currency exchange, the balance of international payments, and serves as a lender of last resort? *
C. International Monetary Fund
When governments spend more than they take in to stimulate economic growth, it is called: *
A. Deficit spending
A unilateral move to reduce the value of one’s own currency by changing a fixed or official exchange rate is known as: *
C. Devaluation
. Which country is a member of the Group of 20 (G-20)? *
A. South Africa
TRUE OR FALSE
Global income inequality is decreasing between rich and poor countries *
B. FALSE
TRUE OR FALSE
World Bank definitions of poverty initially valued social well-being over material standards. *
B. FALSE
TRUE OR FALSE
A “New World Social Contract” is currently being implement by the IMF and World Bank. *
B. FALSE
TRUE OR FALSE
Regions are considered open when the member countries are democracies *
B. FALSE
TRUE OR FALSE
EPAs are Environmental Protection Agencies of the NAFTA countries *
B. FALSE
TRUE OR FALSE
Globalization has often been accompanied by decreased levels of debt, poverty, and exclusion. *
B. FALSE
TRUE OR FALSE
International organizations are exclusively for states. *
B. FALSE
TRUE OR FALSE
. Greenpeace is an intergovernmental organization *
B. FALSE
TRUE OR FALSE
The North American Free Trade Agreement is an example of a regional organization. *
B. FALSE
Economic liberalism claims the key actors in the economy are: *
C. Individual households and firms
All of the following except one represents an increasing integration in globalization: *
D. Morals
Globalization could not exist without *
B. A common religion
The growth in global communication has: *
B. Meant people now rely on different sources for the news
. Economic interchange and interdependence is *
B. A phenomenon that affects individuals in everyday life
It is the process of expanding globalism and refers to the increasing integration of economics, communications and culture across national bounderies. *
B. Globalization
Advances in what have rapidly expanded the speed with which merchandise, money, people, information and ideas move over long distances? *
B. Technology
The Bretton Woods Institutions include: *
B. The World Bank
All of the following are examples of the benefits of globalization EXCEPT *
C. Globalization is the latest stage of Western Imperialism
Resistance to the adoption of a common culture is : *
B. Widespread.
Transnationalism results from all of the following except *
C. increased state sovereignty
. Which of the following concepts is used to describe individuals who adopt a political identification that does not focus on the nation-state? *
C.Transnationalism
Organizations that operate across national boundaries and whose membership is composed of individuals is known as : *
B. NGO
Which of the following perspectives of globalization is most likely to reflect the views of economists? *
C. The growth of international trade and the increase in international trade flows
Used to describe the increasing geographical relocation of production processes on a global scale by multinationals *
C. Deep integration
., Which of the following admit that there is considerable uncertainty as to what the outcomes of globalization might be in recognizing that globalization is a powerful force. *
C. Transformationalists
They see globalization as inevitably resulting in global capitalism, global governance and global civilization *
D. Hyperglobalists
Identify of what is being defined. Answers should be in CAPITALIZED LETTERS: 21. A process in which consumers, organizations, and governments are increasingly interconnected across national borders *
GLOBALIZATION
Responsible for ‘policing’ and negotiating the world trading system *
WORLD TRADE ORGANIZATION
It is the removal or reduction of restrictions or barriers on the free exchange of goods between nations. *
TRADE LIBERALIZATION
A change to private ownership of state-owned companies and industries *
PRIVATIZATION
An investment made by a firm or individual in one country into business interests located in another country *
FOREIGN DIRECT INVESTMENT
The process of greater interdependence among countries and their citizens political, technological, and cultural, as well as economic *
GLOBALIZATION
The process of greater interdependence among countries and their citizens (political, technological, economically, culturally) *
GLOBALIZATION
The ability to produce a good at a lower opportunity cost than another producer. *
COMPARATIVE ADVANTAGE
The ability of country to produce a given product more efficiently than another country. *
ABSOLUTE ADVANTAGE
TRUE/FALSE : 41. Globalization refers to the shift toward a more integrated and interdependent world economy *
TRUE
TRUE/FALSE :
. Tastes and preferences of consumers in different nations are beginning to converge on some global norm. *
TRUE
TRUE/FALSE :
A company has to be a major multinational corporation to facilitate, and benefit from, the globalization of markets. *
FALSE
TRUE/FALSE :
Currently, the most global of markets are for industrial goods and materials that serve a universal need the world over *
TRUE
TRUE/FALSE :
As firms follow each other around the world, greater diversity replaces uniformity *
FALSE
TRUE/FALSE :
Substantial impediments such as barriers to foreign direct investment make it difficult for firms to achieve the optimal dispersion of their productive activities to locations around the globe. *
TRUE
TRUE/FALSE :
7. As of 2008, 149 nations, which collectively accounted for 90 percent of world trade, were WTO members *
FALSE
TRUE/FALSE :
The United Nations and the World Bank were both created in 1944 by 44 nations that met at Breton Woods, New Hampshire. *
FALSE
TRUE/FALSE :
After World War I, the advanced nations of the West committed themselves to removing barriers to the free flow of goods, services, and capital between nations *
FALSE
TRUE/FALSE :
The media has had an insignificant role in promoting a common culture. *
FALSE
