NEW
Font size
WorksheetsProtectionism, Globalisation, and Fair Trade
Total questions: 9
Worksheet time: 5mins
What is the primary definition of Protectionism in international trade?
The reduction of tariffs and quotas to encourage free trade worldwide.
A government policy of putting rules or barriers in place to protect local businesses and jobs from foreign competition.
The movement of money, people, and ideas across borders quickly and easily.
A system designed to ensure producers in developing countries receive fair wages.
Which protectionist measure involves placing a tax on imported goods to make foreign products more expensive?
Subsidy
Quota
Tariff
Exchange Control
Which of the following is a potential disadvantage of using protectionist measures?
Protecting national security industries like energy and food.
Supporting new or small "infant industries" until they can compete globally.
The risk of retaliation, where other countries impose barriers on the country's exports, potentially leading to trade wars.
Protecting local jobs from being lost to cheaper foreign imports.
What negative impact does protectionism specifically have on consumers?
Higher prices and less choice in the market due to reduced foreign competition.
Lower prices, due to government subsidies.
Increased choices in the market due to less domestic competition.
Increased efficiency among local businesses.
What is Globalisation defined as?
Trade restricted only to physical goods that can be seen and touched.
The world becoming more connected, allowing goods, services, money, people, and culture to move across borders more quickly.
A long-term policy focusing solely on reducing environmental damage.
The system used to track a country's exports, imports, and investments.
Which factor is listed as a major driver that made globalisation possible?
Advances in technology, such as the internet, smartphones, and transport systems like container ships.
Restricted labour mobility and strict exchange controls.
High protective tariffs imposed by all major trading blocks.
A massive shift toward agricultural self-sufficiency in all large countries.
A negative impact of globalisation, is that it can lead to:
Lower consumer prices due to production in cheaper countries.
Multinational Companies (MNCs) creating new employment opportunities.
Cultural erosion, where traditional foods, shops, and crafts may lose popularity against global trends.
The spread of technology and knowledge across borders.
What is the core aim of Fair Trade?
To ensure producers in developing countries get fair wages, safe working conditions, and support for their communities.
To guarantee the highest profit margins for retail supermarkets.
To reduce the cost of all imported goods to benefit rich-country consumers.
To encourage large multinational companies to move all production back to their home countries.
How do Multinational Companies (MNCs) contribute to globalisation?
They actively impose quotas to limit competition.
They operate in many countries, facilitating the spread of goods, capital, and technology across borders.
They are primarily responsible for implementing Fair Trade standards worldwide.
They focus entirely on protecting small, local businesses from international rivals.
