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The Global Economy — Test Answers

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1
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Based on this graph, globalization has affected China’s workforce by creating a shift toward specialization in

A
agriculture and away from services.
B
services and away from agriculture.
C
industry and away from services.
D
agriculture, services, and industry.
2
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How has a change in internet access from 2003 to 2019 most likely affected globalization?

A
A 50 percent increase in internet access has most likely sped up globalization.
B
A 60 percent decrease in internet access has most likely slowed down globalization.
C
A 30 percent increase in internet access has most likely had little effect on globalization.
D
A 40 percent decrease in internet access has most likely had little effect on globalization.
3

International trade organizations promote free trade by encouraging countries to

A
develop their products.
B
limit their protectionism policies.
C
maintain their tariffs.
D
establish their trade quotas.
5

Which of these is a positive incentive for domestic producers?

A
a subsidy on imported cars
B
a tariff on clothes
C
a subsidy on domestic oranges
D
a tariff on cars
7

Which of these statements most accurately describes currencies in North America?

A
North American countries have done away with separate currencies.
B
All countries in North America use the US dollar.
C
All countries in North America use the euro.
D
Each country in North America uses its own currency.
9

Why might a country choose to devalue its currency?

A
to reduce taxes
B
to please its trading partners
C
to encourage imports
D
to encourage exports
10

Why do countries provide financial incentives?

A
Financial incentives restrict all trade.
B
Financial incentives set standards.
C
Financial incentives act as trade barriers.
D
Financial incentives limit imports.
12

What are standards designed to do? Choose three correct answers.

A
ensure safety
B
limit imports
C
offer domestic industries an advantage
D
support domestic industries
E
protect consumers
13

Which statements best explain how globalization offers an advantage to businesses? Choose four correct answers.

A
Businesses can take advantage of favorable taxes to make products cheaply.
B
Businesses can take advantage of new forms of technology to make products cheaply.
C
Businesses can take advantage of favorable laws to make products cheaply.
D
Businesses can take advantage of faster technology to make products faster.
E
Businesses can take advantage of new forms of democracy to make products cheaply.
14

Which statement accurately describes a developing country?

A
The country has a high GDP per capita.
B
The country's population has a high growth rate.
C
The country's population has a high life expectancy.
D
The country has a high standard of living.
15

Who decides which currency each country in the world uses?

A
the United States
B
the European Union
C
the United Nations
D
each individual country
16

What type of economic growth do most developed economies experience?

A
rapid growth
B
unpredictable growth
C
moderate growth
D
slow growth
17

There would be no separation between one country’s economy and another’s if the entire world

A
chose paper currency over coins.
B
shared the same currency.
C
eliminated denominations for currency.
D
agreed to use only two types of currency.
18

Which statement best describes how globalization connects the world?

A
Globalization helps create new forms of transportation, communication, and technology.
B
Globalization helps mandate new forms of transportation, communication, and technology.
C
Globalization helps expand old forms of transportation, communication, and technology.
D
Globalization helps share old forms of transportation, communication, and technology.
20

Technologies that allow for instant worldwide communication include

A
airplanes and container shipping.
B
mobile phones and Internet access.
C
high-speed trains and naval ships.
D
outsourcing and new trade markets.
21

What is the most common reason why countries create trade agreements?

A
to create free trade
B
to decrease trade
C
to establish quotas
D
to limit imports

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