WorksheetsUnit 4 - The global economy
Total questions: 16
Worksheet time: 6mins
Which of the following is a reason to increase globalisation?
Lower exchange rates
Reduced cost of communication
An increase in environmental legislation
An increase in the world's population
Which of the following is a feature of globalisation?
The high level of interdependence between nations
Higher levels of unemployment
Increased barriers to trade
Less scope for exploiting economies of scale
Which of the following is a benefit of FDI in a country?
Lower interest rates
Lower exchange rates
Higher employment levels
Lower economic growth
Which of the following is an example of FDI?
The takeover of a parts supplier in Japan by Nisaan
The construction of a factory in Shanghai by a US MNC
A large clothes manufacturer in Bangladesh selling clothes to a German retailer
A US$200,000m investment by a government in the nation's infrastructure
Which of the following is an important reason why countries trade with one another?
To obtain goods that cannot be produced domestically
To reduce inflation
To reduce exports
To reduce FDI
What is meant by free trade?
Exports are transported free of charge
Commissions for changing currency are waived for international trade transactions
A government allows open access to all markets in its country
International transactions are free of indirect taxes such a VAT
Which of the following is a reason for protectionism?
Protect low paid workers
Protect the environment
Prevent dumping
Protect monopolies
Which of the following is a method of protectionism?
Quota
VAT
Product differentiation
A minimum wage
Which of the following is an example of a trading bloc?
Employment will fall
Inflation will be lower
Exchange rates will fall
More FDI is attracted
Which of the following statements about trading blocs is true?
They discourage political cooperation
Countries that do not belong to the trade bloc will face trade barriers
Members of trading blocs all use the same currency
Members of trading blocs speak in a common language
Which of the following is an activity of the WTO?
Helping multinationals to develop their businesses overseas
Settling trade dispute between members
Raising monies for developing countries
Creating new types of trade barrier
Which of the following statements is true of the information shown by the graph?
Agricultural imports have fallen over the period
Before 1980, agricultural exports exceeded agricultural imports
Agricultural exports have fallen over the period
Developing countries export more agricultural goods than developed countries
Which of the following factors would affect the demand for a currency?
Levels of unemployment
The price of imports
The demand for imports
The demand for exports
Speculators can have an effect on the exchange rate. Which of the following statements about speculators is true?
Speculators will only sell foreign currency
Speculators help to stabilise currencies
Speculation in foreign currency is illegal in most countries
If speculators believe that the price for a currency is going to fall, they will sell that currency
If US$1 = €1.2, the cost in euros to a German business buying US$6,700,000 of goods from the USA will be:
€6,700,000
€5,583,333
€8,040,000
€1,200,000
Which of the following will improve the international competitiveness of a country?
An appreciation in the exchange rate
A fall in interest rates
Higher rates of inflation in that country
A depreciation in the exchange rate
