Globalization and Trade

Questions 1–10 of 65

Q1. Exports involve selling goods or services to another country.

True False True False

Q2. Which types of services can globalization internationalize?

IT, finance, consulting and business-process services Only local-market services Only rainwater harvesting Only road maintenance

Q3. The WTO is an organization that manages domestic school education.

True False True False

Q4. What is a trade effect of lower transport costs?

Long-distance trade can become easier and expand International trade will disappear Production will stop completely Exports will always decline

Q5. Why can environmental concerns arise during globalization?

Production, transport and resource use may increase Pollution will always become zero All industries will close Transport will stop

Q6. Why may local firms increase innovation due to globalization?

Because they face global competition Because there is no competition Because markets are closed Because technology is banned

Q7. Which is one challenge of globalization?

Intense competition for small and less competitive domestic firms A complete stop to technological development No trade opportunities Product quality always declining

Q8. What is a major objective of the WTO?

To establish rules for international trade and facilitate trade To control every country’s currency To ban all imports To manage only domestic markets

Q9. What is liberalization?

Reducing government restrictions on trade and investment Nationalizing all private firms Only increasing tax rates Completely stopping imports

Q10. Globalisation is associated with increasing integration through what?

Trade, investment and technology Only local production Closing borders Only farming