Question 1

Which of the following is true of the General Assembly?

Accepted Answer

The General Assembly meets annually to discuss global issues and vote on resolutions. While its resolutions are influential, they are not legally binding. The General Assembly is a principal organ of the United Nations, not under the World Bank, and it is located at the UN Headquarters in New York, not in The Hague.

Question 2

Which of the following best illustrates a multilateral organization?

Accepted Answer

Multilateral organizations are formed by three or more nations to work on issues that are relevant to each of them. Universal Trade Forum, being funded and managed by representatives from several governments to foster international trade, fits this definition perfectly.

Question 3

Imagine that Belseria, a developing country in South America, recently became a member of a multilateral organization that works toward preventing war by promoting economic development in poor countries. The organization assists poor countries in building their infrastructure by providing them with heavily subsidized loans. Given this information, it can be said that Belseria most likely became a member of the _____.

Accepted Answer

The World Bank is known for its role in providing financial and technical assistance to developing countries for development programs (e.g., bridges, roads, schools) that are meant to improve the economic prospects and quality of life for people in those countries. This aligns with the description given, as it mentions the organization works toward preventing war by promoting economic development through infrastructure building with subsidized loans.

Question 4

Maya Inc., an Indian apparel company, now sells its apparels in the United States, Canada, Australia and New Zealand. Derek, the CEO of Maya Inc., believes that free access to markets, few barriers to competition, and uniform trade regulations have enabled Maya Inc. to expand its business operations internationally. Derek's beliefs are consistent with Thomas Friedman's theory of the _____.

Accepted Answer

Thomas Friedman's theory of the "flat world" suggests that globalization has led to a more level playing field in commerce, with fewer barriers to trade and competition, enabling companies like Maya Inc. to expand internationally.

Question 5

Bianca is a student of international business at the University of Phoenix. She is of the opinion that the world is not fully connected. She believes that the global financial markets are controlled only by a few cities and that most businesses still operate in domestic markets. Bianca's views are consistent with the _____ argument.

Accepted Answer

The answer of Bianca is a student of international business...

Question 6

Which of the following is true of the United Nations?

Accepted Answer

The United Nations was established in 1945, following the end of World War II, with the primary aim of preventing future wars and conflicts by providing a platform for dialogue and diplomacy among nations, thereby promoting global peace and security.

Question 7

Dustin is a lecturer at a community college in Memphis. He believes that the globalization of markets has brought the world closer. He asserts that globalization has enabled free access to markets with less barriers to competition and uniform implementation of trade laws. Dustin's beliefs are consistent with the theory of the _____ put forth by the author Thomas Friedman.

Accepted Answer

Dustin's beliefs align with Thomas Friedman's "flat world" theory, which posits that globalization has leveled the playing field in commerce, making it easier for countries to compete and collaborate in the global market.

Question 8

Imagine that Maretia is a country in Eastern Europe that recently joined the World Trade Organization (WTO). As a member of the WTO, Maretia is required to:

Accepted Answer

WTO members are required to uphold the multilateral trading system, which involves commitments to lowering trade barriers and following the established rules of international trade.

Question 9

According to critics of globalization, _____.

Accepted Answer

Critics argue that globalization can lead to increased inequality as wealth and benefits may not be evenly distributed, particularly when new technologies and foreign investments favor already developed areas or skilled workers, leaving others behind.

Question 10

Identify a true statement about the World Trade Organization.

Accepted Answer

The World Trade Organization (WTO) was established to oversee and liberalize international trade. One of its core functions is to ensure that trade flows as smoothly, predictably, and freely as possible, which includes working towards reducing trade barriers and restrictions among member countries.

Question 11

According to Amartya Sen, a Nobel Prize-winning economist, globalization:

Accepted Answer

Amartya Sen argues that globalization has enriched the world scientifically and culturally by facilitating the exchange of ideas, knowledge, and cultural practices across borders.

Question 12

Which of the following best defines the 10% presumption?

Accepted Answer

The 10% presumption suggests that a relatively small portion of economic or organizational activity (about 10%) is conducted on a global scale, while the vast majority (about 90%) occurs within domestic contexts. This concept highlights the significance of local or national activities over international ones in many contexts.

Question 13

Cora, an American citizen, is a critic of globalization. She believes that globalization has done more harm than good. She contends that globalization has detrimental effects on developed markets. Which of the following statements supports her contention?

Accepted Answer

Globalization allows companies to move manufacturing and service jobs to countries where labor is cheaper, which can lead to job losses in developed markets. This supports Cora's contention about the detrimental effects of globalization on developed markets.

Question 14

Sean, a lecturer at Oxford University, is a staunch advocate of globalization. He asserts that globalization has benefited many people scientifically, culturally, and economically. Which of the following statements supports his assertion?

Accepted Answer

Globalization facilitates the spread of technology and innovation, making lifesaving devices, medicines, and technologies more accessible globally, which supports Sean's assertion about the benefits of globalization.

Question 15

Which of the following is true of the International Monetary Fund?

Accepted Answer

The International Monetary Fund (IMF) is known as a "lender of last resort" for countries facing financial crises, providing them with the necessary funds to stabilize their economies.

Question 16

Literia, a country in Asia, is experiencing a financial crisis. Its currency has lost much of its value, and the country's currency reserves are depleting. In this scenario, which of the following multilateral organizations is most likely to provide loans to Literia to rescue it from its financial crisis?

Accepted Answer

The International Monetary Fund (IMF) is the organization most likely to provide loans to countries experiencing a financial crisis to stabilize their economies. The IMF's primary purpose is to ensure the stability of the international monetary system, and it does so by providing financial assistance to countries in need.

Question 17

Sanctity is a non-profit group that works toward increasing female literacy globally. It strives to promote women's education in developing nations. Its members are engaged in providing training and advisory services to schools and colleges in developing nations. Sanctity is funded and managed by several governments worldwide. Given this information, it can be said that Sanctity is a _____.

Accepted Answer

Sanctity is a multilateral organization because it is funded and managed by several governments worldwide and works on a global issue, which is increasing female literacy.

Question 18

Imagine that Deslank, a developing county in Western Africa, recently became a member of a multilateral organization that was set up in the 1990s. To become the organization's member, Deslank had to ratify the organization's regulations in its own parliament. As a member nation, Deslank can now have free trade agreements with other member nations. Given this information, it can be said that Deslank most likely became a member of the _____.

Accepted Answer

The World Trade Organization (WTO), established in the 1990s, is the only global international organization dealing with the rules of trade between nations. Member countries must ratify WTO agreements in their own legislative bodies, and membership allows for the negotiation and implementation of trade agreements among members.

Question 19

Which of the following is true of the World Trade Organization?

Accepted Answer

The World Trade Organization (WTO) was established as a result of negotiations during the Uruguay Round of trade talks in the early 1990s, officially commencing operations on January 1, 1995.

Question 20

According to Nobel Prize-winning economist, Joseph Stiglitz, globalization:

Accepted Answer

Joseph Stiglitz has been critical of globalization, arguing that it often perpetuates inequality and benefits the wealthy and powerful at the expense of the poor and marginalized.

Quiz 1: Globalization