Economic Globalization Quiz

What is the main reason countries trade with each other?

• To show power and dominance

• To start conflicts and wars

• To satisfy their own needs and wants

• To isolate themselves from the world

According to the United Nations, what is economic globalization defined as?

• Decreasing interdependence of world economies

• Decreasing trade of commodities and services

• Increasing isolation of world economies

• Increasing interdependence of world economies

Which organization was founded at the Bretton Woods Conference in 1944?

• World Trade Organization (WTO)

• North Atlantic Treaty Organization (NATO)

• International Monetary Fund (IMF)

• World Bank

What is the purpose of the North Atlantic Treaty Organization (NATO)?

• To provide international monetary cooperation

• To consider an attack against one member as an attack against all

• To promote world trade and economic growth

• To supervise the new international monetary system

What are the three institutions that underwrite the basic rules and regulations of economic, monetary, and trade relations between countries?

• International Monetary Fund (IMF), World Bank, United Nations (UN)

• World Trade Organization (WTO), United Nations (UN), North Atlantic Treaty Organization (NATO)

• World Bank, North Atlantic Treaty Organization (NATO), World Trade Organization (WTO)

• World Trade Organization (WTO), International Monetary Fund (IMF), World Bank

What was the main goal of the Bretton Woods monetary regime?

• To eliminate all independent economic policies

• To spread economic problems to other countries

• To stabilize currency exchange rates without backing currencies entirely with gold

• To impose exchange controls and devaluations

What is the multinational corporation defined as?

• A business organization located in only one country

• A business organization with activities in more than two countries

• A government organization with activities in more than two countries

• A non-profit organization with activities in more than two countries

What is the role of the International Monetary Fund (IMF)?

• To secure international trade agreements

• To provide international monetary cooperation

• To supervise the new international monetary system

• To promote world trade and economic growth

What is the purpose of the World Trade Organization (WTO)?

• To provide international monetary cooperation

• To supervise the new international monetary system

• To underwrite the basic rules and regulations of economic, monetary, and trade relations between countries

• To promote world trade and economic growth

What has been the driving force behind the fast globalization of the world's economies in recent years?

• Decrease in cross-border division of labor

• Isolationist policies

• Development of science and technologies

• Political alliances