Question 1

Which of the following is entrusted with the responsibility of settling trade disputes between countries?
A)The European Union
B)The International Monetary Fund
C)The World Trade Organization
D)The International Labor Organization
E)The United Nations Organization

Accepted Answer

The World Trade Organization (WTO) is entrusted with the responsibility of settling trade disputes between countries. It provides a forum for governments to negotiate and enforce trade agreements, and also works to ensure that global trade flows smoothly, predictably, and freely. The other options listed - the EU, IMF, ILO and UN - may have roles in promoting international cooperation and resolving disputes, but they do not have the same mandate as the WTO when it comes to trade disputes.

Question 2

Which of the following statements is true?
A)World trade as a fraction of world GDP is much less than it was at the end of the 19th century.
B)War decreases the pace of globalization.
C)Large countries such as the U.S. , Russia, and Japan have high scores in economic integration when measured against the criteria of Foreign Policy magazine.
D)Poor countries tend to have high scores in the personal contact area when measured against the criteria of Foreign Policy magazine.
E)The U.S.increased its international investments after the September 11 attacks to revive their economy.

Accepted Answer

War typically disrupts trade, investment, and international cooperation, thereby decreasing the pace of globalization.

Question 3

Countries that have a large number of embassies, have memberships to international organizations, and participate in UN peace missions would be categorized under _____ globalization.
A)cultural
B)social
C)political
D)economic
E)ethical

Accepted Answer

Political globalization refers to the increasing political cooperation among nations and the proliferation of international organizations and agreements. The presence of embassies, memberships to international organizations, and participation in UN peace missions are all indicators of political globalization.

Question 4

_____ is the argument that with globalization, countries compete for international investment by offering low or no environmental regulations or labor standards.
A)'Free rider problem'
B)'Tragedy of the commons'
C)'Race to the bottom'
D)'Flag of convenience'
E)'Enlightened self-interest'

Accepted Answer

The term "race to the bottom" is often used to describe the phenomenon where countries lower their environmental and labor standards in order to attract foreign investment and remain competitive in the global marketplace. This can lead to a downward spiral of standards as countries try to outdo each other in offering the lowest regulations and standards possible.

Question 5

Countries in which one would see a spread of ideas, information, images, and people would be categorized under _____ globalization.
A)economic
B)social
C)ethical
D)cultural
E)political

Accepted Answer

The answer of Countries in which one would see a...

Question 6

Which of the following multinational agreements allows the international movement of workers?
A)NATO
B)The European Union
C)The group of G-8
D)NAFTA
E)The United Nations Accords

Accepted Answer

The European Union has agreements which allow the international movement of workers within the EU countries.

Question 7

Which of the following is a measure of political globalization (one of the three categories used by the KOF Swiss Economic Institute)?
A)Participation in U.N.peace missions
B)Spread of ideas
C)Flow of information
D)Limits on externalities
E)Progressive taxation

Accepted Answer

Participation in U.N. peace missions is a measure of political globalization, as it reflects a country's engagement in international politics and willingness to contribute to global peace and security efforts.

Question 8

Which of the following international organizations do globalization critics claim is serving the interests of large multinational corporations?
A)NATO
B)The World Bank
C)The Fed
D)The United Nations
E)The International Labor Organization

Accepted Answer

Globalization critics often argue that the World Bank primarily serves the interests of large multinational corporations by imposing lending conditions that prioritize free market policies and opening up markets to foreign investment, rather than prioritizing the needs of the local people and environment.

Question 9

Which of the following statements accurately expresses evidence that globalization does not encourage a "race to the bottom" in labor standards?
A)The wages paid by multinational firms to their poor countries' subsidiaries are higher than the wages paid in rich countries.
B)Poor countries that participate in globalization have quickly become rich.
C)Multinational firms tend to pay higher wages than local firms, but they tend to provide lower benefits than existed in the country prior to globalization.
D)Multinational firms must sign contracts with the IMF stating that they will offer exceptional worker benefits.
E)Multinational firms tend to pay higher wages than local firms and tend to provide greater benefits than existed in the country prior to globalization.

Accepted Answer

This choice accurately expresses evidence that globalization does not encourage a "race to the bottom" in labor standards. Multinational firms tend to pay higher wages than local firms and tend to provide greater benefits than existed in the country prior to globalization, which indicates that globalization can improve labor standards in some cases. Poor countries that participate in globalization do not necessarily become rich (Choice B) and there is no evidence that multinational firms must sign contracts with the IMF stating that they will offer exceptional worker benefits (Choice D). While some multinational firms may provide lower benefits than existed in the country prior to globalization (Choice C), this is not a strong or accurate statement and does not negate the evidence presented in Choice E. Choice A is simply false.

Question 10

Which of the following is not considered a criticism of globalization?
A)International corporations serve only the interests of the corporations.
B)Globalization promotes "free" but not "fair" trade.
C)Globalization encourages harmful labor practices.
D)Globalization promotes only trade based on comparative, and not absolute advantage.
E)Globalization occurs at the cost of environmental quality.

Accepted Answer

All of the other choices are commonly considered criticisms of globalization, but D is not a criticism as it is a description of how globalization works. The concept of comparative advantage is the basis for trade under globalization.

Question 11

What has been one the results of globalization experienced by Eastern European nations after the fall of their socialist regimes?
A)All traces of their traditional culture have disappeared.
B)These countries have attracted foreign investment from industrialized countries, which have transferred cleaner technologies and improved environmental quality.
C)These countries have not yet adapted to capitalism, and a majority support a new movement to return to communism.
D)Most national forests have been destroyed by multinational companies.
E)Many new diseases have been introduced because of increased contact with the West.

Accepted Answer

One of the results of globalization experienced by Eastern European nations after the fall of their socialist regimes is the attraction of foreign investment from industrialized countries which have transferred cleaner technologies and improved environmental quality, as mentioned in option B. The other options do not accurately reflect the outcomes of globalization in Eastern European nations.

Question 12

Supporters of globalization argue that increased globalization will lead to:
A)increased living standards.
B)decreased budget deficits.
C)decreased trade deficits.
D)currency appreciation.
E)monetary stability.

Accepted Answer

Supporters of globalization argue that increased trade and investment will lead to increased economic growth and higher living standards. This is because globalization can increase competition, reduce prices, and create new jobs, which can benefit consumers, workers, and businesses alike. However, this argument has also been criticized for its potential negative impact on labor and environmental standards, inequality, and political sovereignty.

Question 13

In this era of globalization, one of the main reasons why some countries have remained closed to the rest of the world is:
A)the fact that their governments follow policies that explicitly work against economic integration.
B)racial discrimination.
C)the fact that their governments impose extremely high mortgage taxes.
D)the establishment of minimum wages.
E)the fact that they are too poor to trade anything with the rest of the world.

Accepted Answer

Countries that remain closed to economic integration usually do so because of their government policies that explicitly work against it. These policies may include high tariffs and barriers to trade, restrictive regulations, and limited foreign investment opportunities. Racial discrimination, mortgage taxes, and minimum wage laws are not necessarily factors that prevent a country from participating in globalization. And while poverty may make it difficult for some countries to engage in trade, it is not the only reason why countries remain closed to economic integration.

Question 14

Countries that enjoy long distance flows of goods, capital, and services as well as information and perceptions that accompany market exchanges would be categorized under _____ globalization.
A)ethical
B)cultural
C)social
D)economic
E)political

Accepted Answer

Long distance flows of goods, capital, and services as well as information and perceptions that accompany market exchanges are characteristics of economic globalization.

Question 15

Which of the following measures of globalization was not affected during the aftermath of the terrorist attacks in the United States on September 11, 2001?
A)World trade
B)Global foreign direct investment
C)International travel and tourism
D)International telephone calls
E)Political engagement

Accepted Answer

International telephone calls were not significantly affected by the aftermath of the terrorist attacks on September 11, 2001. This may be attributed to the fact that telecommunication infrastructure was not directly targeted in the attacks and was able to continue functioning normally. However, world trade, global foreign direct investment, international travel and tourism, and political engagement were all impacted by the attacks and the subsequent global response to them.

Question 16

Globalization can be defined as:
A)the attitude or policy of placing the interests of the entire world above those of individual nations.
B)viewing the entire world as a proper sphere for one nation to project political influence.
C)a period in history that has witnessed a dramatic change in world political thought and the balance of power.
D)an increased cross-border flow of trade in goods, services, and financial assets, along with an increased international mobility of technology, information, and individuals.
E)a social movement that supports global cooperation and interaction, but which opposes the negative effects of economic development across nations.

Accepted Answer

Globalization refers to an increased cross-border flow of trade in goods, services, and financial assets, along with increased international mobility of technology, information, and individuals. This definition is best reflected in option D. Options A and E touch on certain aspects of globalization but do not provide a comprehensive definition, while options B and C are incorrect and do not reflect the true nature of globalization.

Question 17

Which of the following is not a defining characteristic of globalization?
A)Increased cross-border flow of trade in goods
B)Increased cross-border flow of trade in services
C)Increased international mobility of information
D)Increased frequency of wars
E)Increased mobility of individuals across borders

Accepted Answer

Increased frequency of wars is not a defining characteristic of globalization. In fact, globalization is often seen as a way to promote peace and cooperation between nations. The other options listed all involve increased cross-border flow or mobility, which are hallmarks of globalization.

Question 18

In its most basic form, globalization has existed ever since:
A)the creation of the Internet, which enables people to sell their products overseas.
B)the end of the World War II.
C)the creation of the International Monetary Fund (IMF), which establishes the rules for all countries to follow as they trade.
D)the fall of the Berlin wall, which marked the end of communism and thus the beginning of truly "global" times.
E)primitive societies began to engage in trade.

Accepted Answer

The exchange of goods and services between different societies has existed for centuries, even in primitive societies. This is the most basic form of globalization, as it involves the interaction and integration of multiple societies and cultures.

Question 19

Which of the following arguments is not used by promoters of globalization as one of the reasons why free trade and international investment result in higher standards of living?
A)Free trade helps developing countries.
B)International organizations represent governments and people, not the interests of corporations.
C)There is no convincing evidence that globalization occurs at the expense of the environment.
D)There is no convincing evidence that globalization occurs by encouraging harmful labor practices.
E)Globalization brings better cultural practices to countries that have obsolete cultural traditions.

Accepted Answer

Promoters of globalization do not generally argue that globalization brings better cultural practices to countries that have obsolete cultural traditions. This argument is not typically used to support the claim that free trade and international investment result in higher standards of living. Instead, promoters of globalization focus on economic benefits, such as increased opportunities for trade and investment, and argue that these benefits lead to overall improvements in living standards.

Question 20

Which of the following is a direct consequence of the development of faster and cheaper computers?
A)The development of double-entry bookkeeping
B)The enhanced ability of managers of business operations to deal with complex transactions in far-flung locations
C)The creation of money
D)The decrease in workers' productivity, because more computers need fewer people to operate them
E)A decline in the rate of inflation

Accepted Answer

Faster and cheaper computers have enabled managers to deal with complex transactions in different geographic locations, thereby enhancing their ability to manage business operations remotely. With better and faster communication technologies, teams operating in different parts of the organization can connect better, collaborate, and help the company make smarter decisions in real-time.

Quiz 32: Globalization

Which of the following is entrusted with the responsibility of settling trade disputes between countries?

Which of the following statements is true?

Countries that have a large number of embassies, have memberships to international organizations, and participate in UN peace missions would be categorized under _____ globalization.

_____ is the argument that with globalization, countries compete for international investment by offering low or no environmental regulations or labor standards.

Countries in which one would see a spread of ideas, information, images, and people would be categorized under _____ globalization.

Which of the following multinational agreements allows the international movement of workers?

Which of the following is a measure of political globalization (one of the three categories used by the KOF Swiss Economic Institute) ?

Which of the following international organizations do globalization critics claim is serving the interests of large multinational corporations?

Which of the following statements accurately expresses evidence that globalization does not encourage a "race to the bottom" in labor standards?

Which of the following is not considered a criticism of globalization?

What has been one the results of globalization experienced by Eastern European nations after the fall of their socialist regimes?

Supporters of globalization argue that increased globalization will lead to:

In this era of globalization, one of the main reasons why some countries have remained closed to the rest of the world is:

Countries that enjoy long distance flows of goods, capital, and services as well as information and perceptions that accompany market exchanges would be categorized under _____ globalization.

Which of the following measures of globalization was not affected during the aftermath of the terrorist attacks in the United States on September 11, 2001?

Globalization can be defined as:

Which of the following is not a defining characteristic of globalization?

In its most basic form, globalization has existed ever since:

Which of the following arguments is not used by promoters of globalization as one of the reasons why free trade and international investment result in higher standards of living?

Which of the following is a direct consequence of the development of faster and cheaper computers?