Week 2: An economist explains the pros and cons of globalisation - Article

Question 1

Which innovation primarily drove the first wave of globalization?
- Airplane
- Steam engine
- Digital revolution
- Assembly Line

Answer 1

Steam engine

Question 2

What was the third wave of globalization driven by?
- Digital revolution
- Mass production
- Electricity
- Water power

Answer 2

Digital revolution

Question 3

According to Gita Gopinath, what is needed to ensure the next wave of globalization is successful?
- Increased international competition
- Elimination of trade tariffs
- Good domestic policies to help those left out
- Higher investments in technology

Answer 3

Good domestic policies to help those left out

Question 4

What is one of the primary effects of globalization on markets?
- Increased prices and reduced trade
- Decreased competition in domestic markets
- Increased trade and lower prices
- Reduced competition between countries adopting different trade strategies

Answer 4

Increased trade and lower prices

Question 5

What are the advantages of globalization?
- Decreased productivity and higher prices
- Raised output, increased productivity, job creation, higher wages, and lower prices
- Fewer jobs and lower wages
- Reduced economic output and limited technological improvement

Answer 5

Raised output, increased productivity, job creation, higher wages, and lower prices

Question 6

What is a significant benefit of international trade that affects people’s daily lives?
- Increased wages for workers
- Lower prices of everyday goods
- More competition in domestic labour markets
- Fewer imports of goods

Answer 6

Lower prices of everyday goods

Question 7

Who are the biggest losers in international trade?
- High-skilled workers in developing economies
- Low-skilled workers in capital-intensive industries
- Workers in industries with cheaper competitors abroad
- Consumers who rely on imported goods

Answer 7

Workers in industries with cheaper competitors abroad