Globalization and Economic Decisions Quiz

Which of the following best defines globalization?

• The process by which countries become more isolated economically

• The increasing interdependence of world economies

• A policy of economic self-sufficiency

• The restriction of trade between nations

Which organization is primarily responsible for setting international trade regulations?

• International Monetary Fund (IMF)

• United Nations (UN)

• World Trade Organization (WTO)

• World Bank

What is a common criticism of globalization?

• It reduces trade barriers

• It increases cultural diversity

• It leads to environmental degradation

• It fosters economic independence

Which economic effect is typically associated with globalization?

• Increase in national monopolies

• Decrease in international trade

• Increase in competition

• Restriction of labor mobility

Outsourcing production to countries with lower labor costs is an example of which of the following?

• Comparative advantage

• Protectionism

• Tariff reduction

• Trade embargo

A multinational corporation (MNC) is a company that:

• Operates only within its home country

• Exports goods but does not manufacture abroad

• Has operations in multiple countries

• Focuses exclusively on the agricultural sector

Which of the following is a major advantage of globalization for consumers?

• Higher product prices

• Limited choice of goods

• Access to a wider variety of products

• Increased production costs

The 'race to the bottom' is a term often used to describe:

• Countries trying to reduce labor standards to attract business

• Nations competing to reduce taxes for corporations

• Countries raising tariffs to protect domestic industries

• A strategy to increase labor wages globally

Which term refers to the removal of trade barriers to foster global trade?

• Nationalization

• Trade liberalization

• Protectionism

• Trade isolationism

The process of 'glocalization' refers to:

• Local markets ignoring global trends

• Adapting global products to fit local cultures

• Local companies becoming global

• A restriction on foreign investments