MIDTERM GE7

What is the primary characteristic of economic globalization?

• Decrease in cross-border trade

• Increased interdependence of world economies

• Isolation of financial markets

• Limited flow of technology

Which of the following is one of the two major driving forces for economic globalization?

• Privatization

• Decentralization

• Marketization

• Industrialization

What is the role of Transnational Corporations (TNCs) in economic globalization?

• To operate only in their home country

• To promote local trade and production

• To drive economic globalization through global trade

• To regulate international economic policies

Which period is known as the "golden age of globalization"?

• 16th century

• 19th century before WWI

• Post-WWII period

• Early 20th century

What led to the end of the Bretton Woods system?

• Introduction of the Euro

• Decline in the value of the US dollar

• The establishment of the European Monetary Union

• Creation of the World Trade Organization

What is the European Financial Stability Mechanism (EFSM)?

• A temporary rescue fund for European banks

• A permanent fund created to assist EU member states

• An organization for international trade

• A regulatory body for monetary policy in Europe

Market integration refers to:

• The merging of multiple businesses into one

• The ability of markets to trade easily

• Government control over markets

• Market segmentation

What was the significance of the Silk Road in globalization?

• It established modern global corporations

• It connected Asia, Africa, and Europe through trade

• It initiated modern stock markets

• It laid the foundation for modern trade policies

What is the General Agreement on Trade in Services (GATS)?

• An agreement focused on trade in goods

• A framework governing global services trade

• A system for managing tariffs

• A regulatory body for monetary systems

Which of the following best describes outsourcing?

• Hiring foreign employees

• Delegating tasks to an external partner

• Reducing tariffs on goods

• Increasing government regulation