Globalisation and Trade Quiz

What is globalization?

• The process of integrating governments, cultures, and financial markets through international trade into a single world market

• The process of isolating countries from international trade

• The process of limiting technological advancements

• The process of reducing transportation systems

What is one of the drivers of globalization?

• Agricultural revolution

• Cultural preservation

• Technological change

• Political isolation

What is the effect of trade liberalization on firms?

• Decreased multinational corporations

• Decreased quality of goods

• Decreased variety of goods

• Increased competition with foreign firms

What is one of the effects of trade liberalization and globalization on consumers?

• Decreased international travel

• Decreased access to goods

• Increased standard of living

• Decreased spread of food and culture

What is one of the effects of trade liberalization and globalization on the sovereignty of Caribbean territories?

• Natural resources may be exploited by multinational corporations

• Decreased trade deficit

• Increased protection of small industries

• Decreased immigration

What is protectionism?

• Government policies that promote international trade

• Government policies that encourage globalization

• Government policies that support all industries equally

• Government policies that restrict international trade to help domestic industries

What are tariff barriers in protectionism?

• Tax or duty that raises the price of imported products

• Exchange rate controls

• Subsidies given to domestic producers

• Quality standards imposed on foreign products

What are non-tariff barriers in protectionism?

• Exchange rate controls

• Quotas on the volume of imports

• Tax or duty that raises the price of imported products

• Quality standards imposed on foreign products

What is a preferential tariff?

• A tariff policy that promotes free trade

• A tariff policy under which one or more nations are given lower rates or other advantages over others

• A tariff policy that imposes high taxes on all imports

• A tariff policy that restricts all imports

What is a common market?

• A market where goods are sold at a common price

• A type of trade agreement where countries agree to eliminate tariffs and trade barriers

• A market where only local products are allowed

• A market where only specific goods are traded