Globalisation Quiz

What is globalisation?

• The process of the world becoming interconnected through trade and cultural exchange

• The process of countries isolating themselves from global trade

• The reduction of international trade and communication

• The establishment of local markets only

What are multinational corporations (MNCs)?

• Government-owned companies

• Large businesses operating in multiple countries

• Non-profit organizations

• Small businesses operating in one country

Which of the following is NOT a result of globalisation?

• Recognition of global brands in LEDCs

• Decreased dependence on the global economy

• Freer movement of goods and services

• Increased international trade

What does LEDC stand for?

• Less Economically Developed Country

• Largely Economically Developed Country

• Low Economic Development Country

• Least Economically Diverse Country

What is one reason for the acceleration of globalisation in the last half-century?

• Reduction in global trade

• Increased trade barriers

• Improvements in transportation

• Decreased communication

What is the role of the World Trade Organisation (WTO)?

• To promote free trade between countries

• To restrict trade between countries

• To enforce environmental laws

• To regulate local businesses

Why do some companies relocate to countries like India?

• Higher labour costs

• Lower labour costs and high skill levels

• Strict legal restrictions

• Lack of skilled workers

What is inward investment?

• When a foreign company invests in a country

• When a country invests in its own economy

• When a company reduces its investments

• When a country stops foreign investments

Which of the following is a positive impact of globalisation?

• Reduction in foreign investments

• Decreased awareness of global issues

• Increased poverty in LEDCs

• Sharing of ideas and cultures

What is a negative impact of globalisation?

• Increased cultural diversity

• Domination of world trade by richer countries

• Improved communication between countries

• Increased local business opportunities