Quiz on Economic Globalization

What is the definition of economic globalization?

• The advancement of technology in global markets.

• The integration of politics, culture, and the economy on a global scale.

• The mixing and interdependence of markets across the world through the movement of trade, technology, and wealth.

• The isolation of national economies from global influences.

Which of the following is a characteristic of economic globalization?

• Reduction in the flow of capital.

• Integration of different economies.

• Increasing trade barriers.

• Decreasing international trade.

Which of the following is an example of economic globalization?

• The increase in national tariffs.

• The reduction of international trade.

• The isolation of local markets.

• The presence of American quick-service restaurants in nearly every country.

What is the North American Free Trade Agreement (NAFTA)?

• A strategy to decrease production and sales in North America.

• A policy to isolate the economies of the United States, Mexico, and Canada.

• An effort to reduce barriers involved in cross-border trade between the United States, Mexico, and Canada.

• An agreement to increase tariffs between the United States, Mexico, and Canada.

What is one of the largest benefits of economic globalization?

• Reducing international cooperation.

• Positive effect on the development of nations via importing and exporting.

• Increasing the cost of goods and services.

• Decreasing the development of nations.

Why do many companies utilize labor in other countries for manufacturing?

• To increase the cost of consumer goods.

• To reduce the quality of products.

• To avoid government regulations.

• Because the cost of labor is less expensive.

What is capital flight?

• The stabilization of a country's economy.

• The increase in government stability.

• The exodus of cash and other assets from one country's economy due to unfavorable conditions.

• The influx of cash and assets into a country's economy.

What can result from abuse of labor in countries with lower labor costs?

• Higher labor costs.

• Improved working conditions.

• Child exploitation and grueling conditions.

• Increased income equality.

What is importing?

• Increasing trade barriers.

• Bringing goods from another country into the home country.

• Sending goods to foreign countries.

• Reducing the cost of goods.

How can economic globalization influence democratic governance?

• By increasing government instability.

• By reducing international trade.

• By exposing people to the possibilities within a more democratic society.

• By isolating countries from each other.