Globalization Reading 1 - Economics and a world of difference

What is globalisation?

• The idea that the world is one big village

• The process of moving from agriculture to industry

• Opening up world markets to free trade

• Trading between countries with no rules

Which of the following is NOT a way to increase profits through globalisation?

• Increasing tariffs on imported goods

• Taking advantage of cheaper labour or land

• Lowering production costs through cheaper resources

• Accessing new markets for products

What does industrialisation refer to?

• Opening up world markets to free trade

• The process where a country moves from mostly agriculture to mostly industry

• Trading between countries with no rules

• The idea that the world is one big village

What is the developed world sometimes called?

• The first world

• The South

• The third world

• The East

What is a potential long-term benefit of globalisation for developing countries?

• Increased poverty

• Economic instability

• Kick-starting the country's own economy

• Decreased foreign investment

What is one argument against globalisation?

• It leads to economic stability

• It promotes free trade

• It increases cultural understanding

• It can be seen as pure exploitation

What is one advantage of social change due to globalisation?

• Better understanding between different communities

• Decreased job opportunities

• Increased poverty

• Increased isolation

What is one reason for tensions and conflicts in the world?

• Free trade

• Misunderstanding

• Economic stability

• Industrialisation

What is one potential positive outcome of multi-nationals moving into a country?

• Increased isolation

• Decreased interaction with the world

• Improved treatment of workers

• Economic instability

What is a challenge faced by producers in developing countries in the international commodities market?

• Long storage life for products

• Stable prices

• High bargaining power

• Powerless against wealthy buyers