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Globalisation and Trade Liberalisation Quiz

Total questions: 33

Worksheet time: 26mins

Name
Class
Date
1.

What is protectionism?

a)

A policy of protecting home industries from foreign competition

b)

A policy of promoting free trade

c)

A policy of reducing trade barriers

d)

A policy of encouraging foreign investment

2.

What are the benefits of preferential tariffs?

a)

Lower prices for the goods from the country with the preferential tariff

b)

Better trading relations between countries

c)

Assistance provided by richer countries to poorer countries

d)

All of the above

3.

What is trade liberalisation?

a)

The imposition of trade barriers on imported goods

b)

The reduction of barriers to trade

c)

The promotion of preferential tariffs

d)

The increase in protectionist measures

4.

What is globalisation?

a)

The emergence of a single world market

b)

The reduction of barriers to trade

c)

The promotion of preferential tariffs

d)

The increase in protectionist measures

5.

What are the drivers of globalisation?

a)

Leaps in communication technology

b)

Improved transportation

c)

Trade liberalisation

d)

All of the above

6.

What are the economic and social benefits of large-scale production?

a)

Economies of scale

b)

Increased employment

c)

Better quality goods

d)

All of the above

7.

What are the effects of trade liberalisation and globalisation on firms in the Caribbean?

a)

decreased competition

b)

Presence of more multinational corporations

c)

Need to advertise globally

d)

All of the above

8.

What are the effects of trade liberalisation and globalisation on consumers in the Caribbean?

a)

Increased standard of living

b)

Spread of food culture

c)

Westernisation of the world

d)

All of the above

9.

What is the 'brain drain'?

a)

The migration of skilled workers to more developed countries

b)

The migration of unskilled workers to more developed countries

c)

The migration of skilled workers to less developed countries

d)

The migration of unskilled workers to less developed countries

10.

What are the effects of trade liberalisation and globalisation on the sovereignty of territories in the Caribbean?

a)

Exploitation of natural resources by multinational corporations

b)

Closure of small and infant industries

c)

Increasing imports leading to trade deficit

d)

All of the above

11.

What is the 'brain drain'?

a)

The 'brain drain' refers to the migration of brain cells from one part of the brain to another.

b)

The 'brain drain' is a term used to describe the loss of intelligence due to aging.

c)

The 'brain drain' is a process where the brain loses its ability to think critically.

d)

The 'brain drain' refers to the emigration of highly skilled or educated individuals from one country to another.

12.

What is protectionism?

a)

Free trade

b)

Globalization

c)

Tariffs

d)

Protectionism

13.

What is globalisation?

a)

The process of increasing interconnectedness and interdependence among countries through the exchange of goods, services, information, and ideas.

b)

The process of increasing competition and conflict among countries through the exchange of goods, services, information, and ideas.

c)

The process of increasing isolation and self-sufficiency among countries through the exchange of goods, services, information, and ideas.

d)

The process of decreasing interconnectedness and interdependence among countries through the exchange of goods, services, information, and ideas.

14.

What is the impact of globalization on developing countries?

a)

Globalization has only positive impacts on developing countries.

b)

Globalization has only negative impacts on developing countries.

c)

Globalization has no impact on developing countries.

d)

Globalization has both positive and negative impacts on developing countries.

15.

What are the advantages of trade liberalization?

a)

Increased economic growth, job creation, access to a wider variety of goods and services, lower prices for consumers, increased competition leading to innovation and efficiency

b)

Decreased economic growth, job loss, limited access to goods and services, higher prices for consumers, decreased competition leading to stagnation and inefficiency

c)

Increased government control, limited market choices, higher taxes for consumers, decreased competition leading to monopolies

d)

Increased trade deficits, decreased domestic production, limited job opportunities, higher prices for consumers, decreased competition leading to market inefficiencies

16.

What are the consequences of brain drain on less developed countries?

a)

Increase in innovation and economic growth, influx of skilled professionals, brain gain

b)

Increase in human capital, increase in innovation and economic growth, surplus of skilled professionals

c)

Loss of human capital, decrease in innovation and economic growth, shortage of skilled professionals

d)

Decrease in human capital, increase in innovation and economic growth, surplus of skilled professionals

17.

The exchange of goods and services by sale or barter driven by the need for resources.

a)

Fair Trade

b)

Globalization

c)

Trade

d)

Standard of Living

18.

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).

a)

Free Trade

b)

Trade War

c)

Goods and Services

d)

Supply and Demand

19.

When the economy of two countries depend on each other, it's called:

a)

economic interdependence

b)

multinational cooperation

c)

isolationism

d)

outsourcing

20.

When people trade how do both sides benefit?

a)

Countries can focus on producing specific goods from their natural resources instead of trying to create everything they need

b)

Countries can take advantage of each other making the international market more secure

c)

Countries are able to learn the weaknesses of other countries and exploit those for natural resources

d)

Countries are able to enter other countries with spies and foreign agents to undermine governments.

21.
When determining comparative advantage one must determine 
a)
Opportunity cost
b)
Specialization
c)
Absolute Advantage
d)
Embargos 
22.
If I am better at all types of production, I have the ______ in all forms of production.
a)
Comparative advantage
b)
Specialization
c)
Absolute advantage
d)
developed nation
23.
This is a tax on imports that is used to increase price of foreign products and raise government revenue. 
a)
tariff
b)
quota
c)
subsidy
d)
embargo
24.

Underdeveloped nations tend to trade what type of goods?

a)

Low skill products

b)

High tech goods

c)

finished products

d)

High skill products

25.

What are the consequences of brain drain on less developed countries?

a)

Decrease in human capital, increase in innovation and economic growth, surplus of skilled professionals

b)

Loss of human capital, decrease in innovation and economic growth, shortage of skilled professionals

c)

Increase in human capital, increase in innovation and economic growth, surplus of skilled professionals

d)

Increase in innovation and economic growth, influx of skilled professionals, brain gain

26.

What is the 'brain drain'?

a)

The movement of people from rural areas to urban areas

b)

Migration of low-skilled workers from one country to another

c)

Emigration of highly skilled or educated individuals from one country to another

d)

The process of transferring knowledge from one person to another

27.

What is protectionism?

a)

Free trade

b)

Globalization

c)

Tariffs

d)

Protectionism

28.

(a)   are when a g reat deal of paper work are requested by the importing country and licensing fee to deter trade.

29.

Countries impose (a)   ,which is a total ban on good coming from a certain country.

30.

State TWO benefits of preferential trade.

4 lines
31.

State TWO drawbacks of preferential tariffs.

4 lines
32.

Explain ONE key driver of globalization.

4 lines
33.

Barriers to trade are either ________ or ____ _______.

(a)