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WorksheetsEconomic Globalization
Total questions: 50
Worksheet time: 2hrs 40mins
The exchange of goods and services by sale or barter driven by the need for resources.
Fair Trade
Globalization
Trade
Standard of Living
A policy in which a nation does not try to limit imports or exports by enacting tariffs (taxes on imports) or subsidies (money to assist an industry so prices can remain low).
Free Trade
Trade War
Goods and Services
Supply and Demand
A large company such as McDonalds that has operations in more than one country.
Domestic Corporation
Multinational Corporation
Foreign Corporation
State Corporation
Who typically ends up paying tariffs?
Importers and/or consumers
The International Monetary Fund
Congress
Exporters
If a country is better at making a certain product than other countries then they have ______ .
Comparative advantage
Specialization
Absolute advantage
developed nation
An amount of something left over when requirements have been met is called a ____________ situation.
Shortage
Surplus
Equilibrium
Supply
A state or situation in which something needed cannot be obtained in sufficient amounts is called a ......
Shortage
Surplus
Equilibrium Equation
Supply Equation
If a producer has too much of a good that nobody wants then the price of that good will be ____________ if the producer wants to try to make their money back.
Raised
Lowered
A surplus of a product is most beneficial to a .....
Producer
Consumer
Which of the following economies relies on barter and trade and subsistence farming?
Market
Mixed
Traditional
Command/Planned
Which of the following economic systems is strictly controlled by the government?
Market
Mixed
Traditional
Command
Which of the following is not one of Adam Smith's economic laws?
Law of Supply and Demand
Law of Wages and Prices
Law of Self Interest
Law of Competition
Which of the following is not a benefit of competition to the consumer.
Efficiency
Lower Prices
Better Quality
More Choice of products
The definition of a subsidy is a sum of money granted by the government to assist an industry so that the price of a commodity or service may remain low or competitive.
True
False
Which of the following is not a form of protectionism?
Tariffs on imports
Subsidies
Quotas on number of imports allowed into a countries
Free exchange of goods
The definition of scarcity is limited wants with unlimited resources.
True
False
What is the primary goal of trade liberalization?
To increase tariffs on imports
To reduce trade barriers and promote free trade
To provide subsidies to local industries
To restrict the flow of goods between countries
Which organization is responsible for overseeing international trade rules and resolving disputes between countries?
International Monetary Fund (IMF)
World Bank
World Trade Organization (WTO)
United Nations (UN)
How do subsidies affect international trade?
They increase the cost of imported goods
They make domestic goods more competitive by lowering their prices
They promote trade liberalization
They are used to impose trade barriers
What is the primary function of the World Bank?
To provide short-term loans to countries facing balance of payments problems
To offer long-term loans and grants for development projects to help reduce poverty
To regulate international trade
To manage the global financial system
Which of the following is a common criticism of the International Monetary Fund (IMF)?
It focuses too much on environmental issues
It imposes structural adjustmnet measures that can lead to social unrest
It only provides grants, not loans
It does not engage with developing countries
What is privatization in the context of economic policy?
The transfer of ownership of businesses from the private sector to the government
The transfer of ownership of businesses from the government to the private sector
The nationalization of key industries
The creation of public-private partnerships
What is containerization in the context of global trade?
The use of large standardized shipping containers to transport goods
The process of packaging goods in small, individual containers
The method of storing goods in warehouses
The practice of using containers to store digital data
Which of the following best describes a debt trap?
A situation where a country is unable to repay its loans and falls into a cycle of borrowing more
A method used by countries to increase their foreign reserves
A strategy to reduce national debt by increasing exports
A financial tool used to manage inflation
What is the primary objective of the Belt and Road Initiative (BRI) for China?
To promote regional connectivity and economic integration through infrastructure development
To establish military bases in strategic locations
To create a global network of free trade zones
To reduce global carbon emissions
Which of the following best describes the concept of fair trade?
Trade without any government intervention
Trade that ensures equitable wages and safe working conditions for workers
Trade that focuses on maximizing profits for corporations
Trade that involves only developed countries
How does capitalism contribute to environmental degradation?
By promoting sustainable practices
By prioritizing short-term profits over environmental protection
By enforcing strict environmental regulations
By reducing consumption and waste
What is a common consequence of wealth disparity in a capitalist economy?
Equal distribution of resources
Increased social and economic inequality
Universal access to healthcare and education
Reduction in poverty levels
Which are negative effects of Globalisation?
(Pick two)
Efficient world economy.
Loss of local culture.
Faster Economic Growth.
Reduced power of Governments to control economic activities.
What is a trade imbalance?
A situation where a country exports more than it imports
A situation where a country imports more than it exports
A situation where a country has equal imports and exports
A situation where a country does not engage in international trade
Which of the following best describes neo-colonialism?
Direct political control over a country
Economic and cultural influence over a country without direct political control
Military occupation of a country
Complete isolation from international trade
What is a trade war?
A conflict between countries involving military action
A situation where countries impose tariffs or other trade barriers against each other
A competition between companies within the same country
A negotiation process to establish free trade agreements
What is the primary reason fast fashion is often criticized?
High prices
Limited availability
Environmental impact and exploitation of workers
Exclusive designs
Which of the following best describes the term 'race to the bottom' in the context of global trade?
Countries competing to offer the highest wages
Countries lowering standards to attract business
Countries increasing tariffs to protect local industries
Countries collaborating to improve labor conditions
How does fast fashion contribute to worker exploitation?
By providing high wages and benefits
By ensuring safe working conditions
By demanding quick production at low costs, leading to poor working conditions
By promoting fair trade practices
What is a mixed economy?
An economic system that combines elements of both capitalism and socialism
An economic system where only private enterprises operate
An economic system based solely on barter and trade
An economic system where the government has complete control over all resources
Why is it important for businesses to maintain low production costs?
To reduce market competition
To enhance the business's profits
To limit production output
To increase product prices
What is protectionism in the context of international trade?
A method to increase exports by reducing production costs
An approach to encourage foreign investment in domestic markets
A strategy to protect domestic industries from foreign competition by imposing tariffs and quotas
A policy of promoting free trade between countries
Which of the following is a key objective of CUSMA?
To establish a common currency for North America
To promote free trade and economic integration among member countries
To increase tariffs on agricultural products
To limit cross-border investments
What is the primary reason for the increased interest in the Arctic region by global powers?
To establish new military bases
To explore untapped natural resources
To create new trade routes
To promote tourism
What is debt distress?
A situation where a country is unable to meet its debt obligations
A condition where a country has no debt
A scenario where a country has surplus funds
A state where a country is investing heavily in infrastructure
How do rising interest rates typically affect a country's national debt?
They lead to a decrease in government spending
They increase the cost of servicing existing debt
They decrease the cost of borrowing
They have no impact on national debt
What role do multinational corporations play in neo-colonialism?
They promote fair trade practices
They often exploit resources and labor in developing countries
They help reduce economic dependency
They focus solely on domestic markets
Match the following
The Government controls all aspects of the economy
Command Economy
Realizes on the forces of self-interest and suppy and demand
Market Economies
Realizes on markets, supply and demand, but also has government intervention
Mixed Economies
It is based on hunting and gathering, and subsistence farming
Traditional Economy
Match the following
Promotes lower prices, better quality, and more choice for consumers
Law of Competition
if a product has a high demand and low supply, the price will increase. Conversely, if there is low demand and high supply, the price will decrease.
Law of supply and Demand
People do what is best for themselves, and be working hard make the economy better
Law of Self-Interest
Known as the father of capitalism
Adam Smith
A book written by Adam Smith explaining how capitalism should work for countries
The Wealth of Nations
Match the following
The rate of increase in prices over a given period of time.
Inflation
Unlimited wants with limited resources
Scarcity
When one company or person is the only seller of a product or service
Monopolies
Is a company that has business operations in at least one country other than its home country and generates revenue outside of its home country.
Multinational Corporation
The distribution of goods and services throughout a trans-national companies' global network to maximize profit and minimize waste.
Global Supply Chain
How does fair trade certification benefit coffee consumers?
By providing cheaper coffee options
By offering a wider range of coffee flavors
By guaranteeing faster delivery times
By ensuring the coffee is produced sustainably and ethically
What is economic interdependence?
The self-sufficiency of a country in all economic aspects
The reliance of countries on each other for goods, services, and capital
The complete economic isolation of a country
The dominance of one country over another in trade
What is the primary purpose of economic sanctions?
To increase domestic production
To promote free trade
To provide financial aid to developing countries
To punish or pressure a country to change its policies
