The economic dimension of globalization

As a global financial institution, the IMF plays a crucial role in stabilizing economies and promoting global economic cooperation

• True

• False

Transnational Corporations are businesses that have a global reach

• True

• False

The WTO oversees global trade rules and resolves disputes, facilitating the smooth functioning of international trade

• True

• False

Economic globalization has narrowed down the gap between the rich and the poor, increasing income equality worldwide.

• True

• False

Transnational Corporations only operate in the country where it is created.

• True

• False

Benefits that most Transnational Corporations look into before making one country become its subsidiary

• Low labor costs

• High tax cost

• Easy access to raw material

• Good geographical condition

The General Agreement on Tariffs and Trade (GATT) is the foundational agreement reached between two countries after World War II to reduce tariffs, quotas, and other barriers to trade.

• True

• False

Which of the following is NOT one of the structural adjustments required by the Washington Consensus to qualify for loans from the IMF and World Bank?

• Promotion of foreign direct investment

• Reduction of public expenditure

• Protection of property rights

• Expansion of military and public administration.

How many points were there in the Washington Consensus?

• 9

• 10

• 11

• 12

What is the primary purpose of the Washington Consensus, as defined by John Williamson?

• To promote communism in developing countries

• To establish a new form of colonialism

• To integrate and deregulate markets around the world

• To increase public expenditure and create a larger budget deficit