Trade and Globalization

1. What is the process that links countries through trade and culture?

• A) Isolation
  

• B) Industrialization
  

• Globalization

• D) Colonization
  

2. How do advances in transportation and communication affect globalization?

• A) They slow down trade and cultural exchange
  

• B) They make globalization easier and more efficient
  

• C) They increase trade barriers between nations
  

• D) They only benefit developed countries
  

3. What is economic interdependence?

• A) When a country produces everything it needs independently
  

• B) When countries rely on each other for resources, goods, and services
  

• C) When developing countries do not trade with developed nations
  

• D) When a country stops participating in international trade
  

4. Which of the following is a characteristic of a developed country?

• A) A weak industrial economy
  

• B) A low standard of living
  

• C) Strong healthcare, education, and technology
  

• D) Dependence solely on agriculture
  

5. Why do multinational corporations use outsourcing?

• A) To cut costs and produce more goods
  

• B) To avoid international trade
  

• C) To reduce globalization
  

• D) To increase job opportunities in their home countries
  

6. What is one potential negative effect of outsourcing?

• A) It increases the price of goods
  

• B) It creates unemployment in the home country
  

• C) It eliminates the need for trade agreements
  

• D) It leads to a decrease in global communication
  

7. What is the purpose of free trade agreements?

• A) To limit the exchange of goods between countries
  

• B) To increase tariffs and trade barriers
  

• C) To allow goods to be traded without restrictions
  

• D) To stop multinational corporations from expanding
  

8. What is the main goal of the World Trade Organization (WTO)?

• A) To control oil prices
  

• C) To stop globalization
  

• D) To eliminate outsourcing
  

• B) To settle trade disputes and promote free trade
  

9. What is one criticism of free trade?

• A) It only benefits developing countries
  

• B) It leads to the exploitation of workers and the environment
  

• C) It prevents economic interdependence
  

• D) It increases global poverty
  

10. How does globalization affect culture?

• A) It isolates cultures from one another
  

• B) It spreads cultural traits through trade, travel, and media
  

• C) It eliminates traditional cultures completely
  

• D) It prevents countries from adopting new technologies