12.5 Review

What is the main driving force behind globalization?

• Advancements in communication and transportation technologies

• Environmental factors

• Government regulations

• Local market demands

What is the purpose of protectionism in international trade?

• To reduce government intervention in trade

• To safeguard jobs and protect native industries

• To promote free trade and globalization

• To increase import quotas

What is the function of a tariff in international trade?

• To decrease the cost of imported goods

• To limit the amount of imported goods

• To increase the cost of imported goods

• To ban trade with a particular country

What is the North American Free Trade Agreement (NAFTA) aimed at achieving?

• Establishing free trade among the United States, Canada, and Mexico

• Creating a forum for new trade agreements

• Imposing trade embargoes on certain countries

• Reducing world poverty and promoting global literacy

What is the role of the International Monetary Fund (IMF) in international fiscal policy?

• Applying diplomatic pressure and punishment in trade issues

• Providing loans to developing nations and raising the standard of living

• Promoting cross-border investment and reducing world poverty

• Structuring international trade and creating fiscal stability

What is the primary goal of the World Bank?

• Reducing world poverty and promoting global literacy

• Structuring international trade and creating fiscal stability

• Promoting cross-border investment and reducing world poverty

• Providing loans to developing nations and raising the standard of living

What is the function of the World Trade Organization (WTO) in international commerce?

• Promoting cross-border investment and reducing world poverty

• Applying diplomatic pressure and punishment in trade issues

• Structuring international trade and creating fiscal stability

• Providing a set of rules for international commerce and creating new trade agreements

What is the Group of 8 (G8) an annual meeting of?

• The leaders of eight wealthy and industrialized nations

• The leaders of countries with large trade surpluses

• The leaders of developing nations

• The leaders of countries with large trade deficits

What are some positive effects of globalization?

• Shift from manufacturing economy to service economy

• Large trade deficits with other countries

• Exploitation of workers in less-developed countries

• More goods available to consumers and more markets for producers

What is a negative consequence of globalization?

• Large trade deficits with other countries

• Shift from manufacturing economy to service economy

• More goods available to consumers and more markets for producers

• Exploitation of workers in less-developed countries