Globalization, Free trade and Protection

What is globalisation?

• The process by which the world's economies become interdependent.

• A method to protect domestic industries.

• A type of international trade.

• A cultural exchange program.

What are some positive impacts of globalisation?

• Increased international trade, creating wealth and jobs globally.

• Widened income and wealth gaps between the world's poorest and richest countries.

• Increased dependence on the global economy.

• None of the above.

What are the advantages of multinational companies?

• Job creation and improved standards of living in host countries.

• Criticism for unethical practices.

• Potential to force local firms out of business.

• Challenges in dealing with different legal systems.

What does free trade refer to?

• International trade without protectionist measures.

• Trade limited by tariffs and quotas.

• Trade only between developed countries.

• Trade regulated by international laws.

What are methods of protection in trade?

• Tariffs, import quotas, subsidies, embargoes.

• Free trade agreements.

• International cooperation.

• None of the above.

What are arguments against protectionism?

• Market distortions leading to global misallocation of resources.

• Safeguarding infant industries.

• Preventing dumping.

• Generating government revenue.

What are some negative effects of globalisation?

• Improved access to technology and information.

• Increased economic growth in developing countries.

• Loss of cultural identity and local traditions.

• Enhanced global cooperation.

What are examples of trade barriers?

• Tariffs, import quotas, and non-tariff barriers.

• Free trade agreements.

• International trade regulations.

• None of the above.

How does globalisation affect local economies?

• It isolates local markets from global trends.

• It guarantees job security for local workers.

• It can lead to increased competition and innovation.

• It has no impact on local economies.

What challenges do developing countries face in a globalised economy?

• Access to international markets.

• Cultural exchange.

• Competition from foreign companies.

• Infrastructure and technology.