Global Economy Quiz 1

What is meant by economic isolation?

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  Economic isolation means a country is fully integrated into the global economy.

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  Economic isolation is when a country increases its foreign investments.

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  Economic isolation is the practice of a country limiting its economic interactions with others.

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  Economic isolation refers to a country's open trade policies

What technological advancements contributed to the first wave of globalization?

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  Internet and smartphone development

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  Electric car innovations

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  Artificial intelligence breakthroughs

• Steam engine and telegraph advancements.

In what ways does globalization impact the economy?

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  Globalization eliminates job competition and interdependence.

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  Globalization reduces trade and investment opportunities.

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  Globalization leads to isolation of economies.

• Globalization impacts the economy by increasing trade.

How do international movements of goods and services affect national economies?

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  International movements lead to job losses in all sectors.

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  International movements of goods and services can stimulate economic growth, create jobs, and affect trade balances in national economies.

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  They have no impact on trade balances.

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  They only benefit large corporations and not local businesses.

Which countries were primarily responsible for driving the first wave of globalization?

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  Spain, Portugal, the Netherlands, France, and England

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  Italy, Germany, Japan, China, and Russia

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  Brazil, Argentina, India, Australia, and Canada

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  Sweden, Norway, Denmark, Finland, and Iceland

What is the zero-sum fallacy in trade?

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  The zero-sum fallacy suggests that all trade is inherently harmful

• The zero-sum fallacy in trade is the belief that trade benefits one party at the expense of another.

• The zero-sum fallacy means that one party always loses in trade negotiations.

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  The zero-sum fallacy indicates that trade only benefits the wealthier party.

What criticism do opponents of globalization have regarding U.S. policies?

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  U.S. policies prioritize corporate interests, leading to job losses and increased inequality.

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  U.S. policies focus solely on environmental protection and sustainability.

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  U.S. policies promote equal wealth distribution among all citizens.

• Globalization has no impact on local job markets in the U.S

Set of economic practices and principles applied by the great European states between the 15th and 18th centuries:

What principle did David Ricardo develop to improve upon Adam Smith's theory?

Why do developing nations impose export tariffs?

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  To encourage international competition among exporters.

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  To protect local industries and generate revenue.

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  To reduce the cost of imported goods.

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  To increase foreign investment in local markets.