Globalization Reading 1 - Economic Globalization

What is the main idea of globalisation?

• People are traveling less.

• The world is becoming one big village.

• Technology is becoming obsolete.

• Countries are becoming more isolated.

Which of the following is NOT a way to increase business profits through globalisation?

• Accessing new markets for products.

• Increasing production costs.

• Taking advantage of cheaper labour.

• Lowering production costs through cheaper resources.

What does 'industrialisation' refer to?

• Opening up world markets to free trade.

• The process where a country moves from mostly agriculture to mostly industry.

• Trading between countries with no rules or regulations.

• Countries becoming economically stable.

What is the 'North-South Divide'?

• A geographical division between the North and South poles.

• An economic term describing the wealth distribution between developed and underdeveloped countries.

• A cultural division between different regions.

• A political division between northern and southern countries.

What is one of the advantages of globalisation?

• It leads to economic instability.

• It reduces the quality of life.

• It makes products more expensive.

• It brings jobs and money to developing countries.

What is a potential disadvantage of globalisation?

• It reduces the risk of local unrest.

• It can lead to exploitation of foreign workers.

• It eliminates corruption.

• It ensures equal pay for all workers.

What does 'liberalisation' mean in the context of globalisation?

• The division of wealth between the North and South.

• The process of moving from agriculture to industry.

• Opening up world markets to free trade and competition.

• Trading between countries with strict regulations.

What is a 'developed world' country?

• A country with little economic stability.

• A country with economic stability and a high standard of living.

• A country that is not industrialising.

• A country with a majority of its population living in poverty.

What is one reason companies relocate to developing countries?

• To avoid economic benefits.

• To reduce market access.

• To take advantage of cheaper labour and resources.

• To increase production costs.

What is a potential long-term benefit of globalisation for developing countries?

• Increased poverty.

• Decreased job opportunities.

• Economic instability.

• Kick-starting the country's own economy.