Contemp art Quiz 1

Which economic theory suggests that wealthier nations develop at the expense of poorer nations?

• Modernization Theory

• World Systems Theory

• Dependency Theory

• Neoliberal Economics and Market Expansion Theory

• Structural Functionalism and Global Stratification

What was a major factor in the shift from overland trade routes to maritime trade during globalization’s early phases?

• European naval advancements and the discovery of alternative routes

• The decline of Asian economies and the rise of African merchants

• The Ottoman Empire’s control over key trade routes, limiting European access

• The Industrial Revolution’s emphasis on resource extraction

• The rapid expansion of air travel reducing reliance on maritime trade

Which of the following is a characteristic of transnational corporations (TNCs)?

• They operate exclusively within a single country’s borders

• They are owned solely by governments and have no private investors

• They influence global trade through cross-border investments and production

• They must adhere to a single country’s economic policies regardless of operations abroad

• They rely only on domestic labor without outsourcing jobs to developing nations

The Galleon Trade (1565–1815) was significant in globalization history because:

• It established one of the earliest international trade networks connecting Asia and the Americas

• It caused the collapse of the British East India Company and the Dutch East India Company

• It was responsible for the rise of industrial capitalism in Western Europe

• It was the first example of free-market trade without government regulation

• It allowed unrestricted trade between European powers without tariffs or restrictions

What is the main function of the World Trade Organization (WTO)?

• To resolve trade disputes and ensure the smooth flow of international commerce

• To regulate foreign exchange markets and set global currency values

• To provide financial aid to low-income nations for economic growth

• To protect local businesses by imposing trade restrictions on multinational companies

• To act as an enforcement agency for international law and economic sanctions

A major criticism of free trade agreements (FTAs) is:

• They create economic instability in developed nations

• They often result in environmental harm, labor exploitation, and economic inequality

• They discourage competition and make international trade inefficient

• They reduce global economic interdependence and slow economic growth

• They force governments to adopt protectionist policies to secure domestic industries

How does the 'race to the bottom' affect global markets?

• It increases competition among multinational corporations, leading to stronger economies

• It allows countries to improve labor standards by imposing strict regulations

• It encourages states to lower wages and environmental standards to attract foreign investors

• It results in a rise in global consumer demand and fair-trade initiatives

• It enhances government oversight on multinational corporations to ensure ethical business practices

What is a defining feature of economic globalization?

• The restriction of capital movement across borders

• The exclusive focus on manufacturing rather than services

• The interdependence of national economies through trade, investment, and technology

• The decline of multinational corporations and their influence on world markets

• The replacement of traditional banking systems with cryptocurrency and decentralized finance

Why did the Industrial Revolution accelerate economic globalization?

• It led to the invention of steam-powered ships, reducing transportation costs

• It caused nations to close their borders to protect local industries

• It encouraged governments to abandon international trade policies

• It led to the collapse of financial markets due to rapid technological advancements

• It resulted in a global recession due to an oversupply of manufactured goods

What economic philosophy is based on minimal government intervention in markets?

• Keynesian Economics

• Mercantilism

• Laissez-faire

• Import Substitution Industrialization

• State Capitalism and Protectionist Policies