Question 1

One protectionist argument is that as jobs are exported from developed to developing countries, the developed nation's less educated labor sector suffers disproportionately as national manufacturing gets 'hollowed out'

Accepted Answer

This argument is based on the observation that jobs, especially in manufacturing, often move from high-wage, developed countries to lower-wage, developing countries. This shift can lead to a decline in manufacturing jobs in developed countries, disproportionately affecting less educated or lower-skilled workers who rely on these jobs, thus leading to what is described as the 'hollowing out' of national manufacturing.

Question 2

Free trade creates jobs but entails little job loss particularly in developed nations

Accepted Answer

Free trade can lead to job creation in sectors where a country has a comparative advantage but can also result in significant job losses in industries that cannot compete with cheaper imports, affecting both developed and developing nations.

Question 3

Developed and developing nations both agree that low wage rates are legitimate competitive tools in the world marketplace

Accepted Answer

Developed and developing nations often have differing views on the use of low wage rates as competitive tools. Developed nations frequently criticize low wage rates in developing nations as unfair competition and a form of labor exploitation, while developing nations may view them as a necessary means to attract foreign investment and boost economic growth.

Question 4

Strategic industries that many governments feel need protection usually include agriculture, military and nuclear sectors

Accepted Answer

Governments often consider agriculture, military, and nuclear sectors as strategic industries because they are crucial for national security, food security, and energy independence, necessitating protection and sometimes subsidies or restrictions on foreign ownership and investment.

Question 5

European economic unification (EC'92) included common industry standards for major European industries, the elimination of border controls, and privatization and deregulation of a number of industries

Accepted Answer

The European economic unification under the European Single Market program, often referred to as EC'92, aimed at creating a single market across the European Community. It included measures such as the establishment of common industry standards to facilitate trade, the elimination of border controls to allow for the free movement of goods, people, services, and capital, and the privatization and deregulation of certain industries to increase competition and efficiency within the market.

Question 6

The European Union originated as the European Coal and Steel Community in the late 1940s and early 1950s

Accepted Answer

The European Union (EU) indeed originated as the European Coal and Steel Community (ECSC) which was established by the Treaty of Paris in 1951, coming into force in 1952, as a step towards economic integration and peace among European countries after World War II.

Question 7

The North American Free Trade Area (NAFTA) originated in 1989 with the US, Canada and Mexico as the original members

Accepted Answer

NAFTA, which included the US, Canada, and Mexico, officially came into effect on January 1, 1994, not in 1989.

Question 8

European economic unification (EC'92) established the Euro as the common regional currency

Accepted Answer

European economic unification under the Maastricht Treaty in 1992 laid the groundwork for the Euro, but the currency itself was not introduced until 1999 for electronic transactions and 2002 for physical notes and coins.

Question 9

Political integration of market blocs involves member states sacrificing national political and economic sovereignty to have region-wide fiscal, monetary policies and a common currency

Accepted Answer

Political integration in market blocs indeed involves member states giving up some level of their national sovereignty to adopt shared policies and mechanisms, such as a common currency and unified fiscal and monetary policies, to ensure the smooth functioning and competitiveness of the bloc as a whole.

Question 10

Private sector contributions to world development include the activities of global retailers, advances in shipping and aviation, E-commerce and global media development

Accepted Answer

Private sector contributions to world development are significant and include the activities of global retailers which enhance global trade, advances in shipping and aviation that improve global connectivity, the development of E-commerce which facilitates international business and consumer access, and global media development that promotes information exchange and cultural globalization.

Question 11

The Treaty of Rome established the European Economic Community in 1957 and had ten original members

Accepted Answer

The Treaty of Rome established the European Economic Community in 1957, but it had only six original members: Belgium, France, Italy, Luxembourg, the Netherlands, and West Germany.

Question 12

The World Bank is mainly concerned with helping countries develop adequate national infrastructures (roads, power etc.) and food supplies

Accepted Answer

The World Bank focuses on providing financial and technical assistance to developing countries for development programs (e.g., bridges, roads, electricity) that are expected to improve the economic prospects and quality of life for people in those countries, including support for agriculture and food supply systems.

Question 13

A major free trade argument is that it promotes global competition that benefits consumers through lower prices and increased varieties of products

Accepted Answer

Free trade encourages competition among producers worldwide, leading to lower prices and a wider selection of goods for consumers, as companies strive to be more efficient and innovative to compete in the global market.

Question 14

The Free Trade Agreement of the Americas has established a free trade area covering North, Central and South America

Accepted Answer

The Free Trade Agreement of the Americas (FTAA) was proposed to establish a free trade area covering the Americas but was never finalized or implemented. Negotiations stalled and the agreement was not adopted.

Question 15

By 2007, the European Union increased in size to 27 nations

Accepted Answer

In 2007, Bulgaria and Romania joined the European Union, increasing its size to 27 member countries at that time.

Question 16

The political superstructure of the European Union includes a European Commission, a European Parliament, a Council of Ministers, and a Court of Justice

Accepted Answer

These institutions are key components of the EU's political structure, with the European Commission acting as the executive body, the European Parliament and the Council of Ministers forming the legislative arm, and the Court of Justice serving as the judicial authority.

Question 17

Private infrastructure development is mainly organized through the United Nations

Accepted Answer

Private infrastructure development is primarily driven by private companies, investors, or public-private partnerships, rather than being organized through the United Nations, which is an international organization focused on governmental cooperation in areas such as peace and security, human rights, and development.

Question 18

Free trade arguments include the uneven distribution of global resources, contributing to the development of emerging nations, and the creation of jobs

Accepted Answer

Free trade allows countries to specialize in the production of goods and services they are most efficient at producing, leading to the optimal allocation of global resources, economic development in emerging nations through access to larger markets, and the creation of jobs by fostering increased production and competitive industries.

Question 19

Free trade areas abolish internal tariffs among member states and instigate a common external tariff

Accepted Answer

Free trade areas abolish internal tariffs among member states but do not instigate a common external tariff; that characteristic is of a customs union.

Question 20

Common markets have no internal tariffs, a common external tariff, and free movement of labor and capital

Accepted Answer

Common markets eliminate internal tariffs among member countries, adopt a common external tariff on imports from non-member countries, and allow for the free movement of labor and capital across borders within the market.

Quiz 1: Globalization and Worldwide Infrastructure Development