Foreign Direct Investments (FDI) and Globalizing Actors Quiz
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Questions and Answers

Which of the following is a potential consequence of a disruption in the supply chain?

  • Reduced economic cooperation (correct)
  • Increased economic cooperation
  • Reduced political cooperation
  • Increased political cooperation

What is an example of a resource that can cause disruptions if its production is affected?

  • Rare earth metals (correct)
  • Copper
  • Coal
  • Oil

Why can disruptions in the production of rare earth metals be a risk?

  • They are used in light-emitting diode (LED) lights
  • They are produced in China
  • They are essential for renewable energy construction (correct)
  • They are used in most electronic displays

Which country is a major producer of rare earth metals?

<p>China (A)</p> Signup and view all the answers

What can disrupt the production of copper?

<p>All of the above (D)</p> Signup and view all the answers

Why can disruptions in the production of copper be a risk?

<p>Copper is essential for renewable energy construction (A)</p> Signup and view all the answers

Which country is a major producer of copper?

<p>Chile (A)</p> Signup and view all the answers

What can disruptions in the supply chain lead to?

<p>Reduced political cooperation (B)</p> Signup and view all the answers

What can disruptions in the supply chain result in?

<p>Reduced political cooperation (B)</p> Signup and view all the answers

Which of the following is a characteristic of globalization?

<p>Increased interactions between citizens of different countries (A)</p> Signup and view all the answers

What is the main difference between globalization and nationalism?

<p>Globalization involves economic and financial cooperation, while nationalism focuses on limited cooperation (A)</p> Signup and view all the answers

What motivates companies to engage in globalization?

<p>Increasing profits, accessing resources and markets, and intrinsic gain (C)</p> Signup and view all the answers

How can companies increase profits through globalization?

<p>By increasing sales and reducing costs (D)</p> Signup and view all the answers

Why do non-state actors participate in globalization?

<p>To access resources and markets (D)</p> Signup and view all the answers

What type of flows are short-term investments in foreign assets?

<p>Portfolio investment flows (A)</p> Signup and view all the answers

What can facilitate or accelerate globalization?

<p>Political cooperation (D)</p> Signup and view all the answers

What is globalization?

<p>The process of interaction and integration among people, companies, and governments worldwide (D)</p> Signup and view all the answers

What has been the trend in the World Bank Openness Index over the years?

<p>It has increased from 27 percent in 1970 to over 60 percent in 2019 (B)</p> Signup and view all the answers

What are some of the headwinds that globalization has experienced since 2008?

<p>All of the above (D)</p> Signup and view all the answers

How are automobiles typically produced in a globalized world?

<p>Parts are made in multiple countries, assembled in another country, and sold in a third country (B)</p> Signup and view all the answers

What does the process of globalization provide for companies in terms of their products?

<p>Opportunities to find the best inputs for their product (C)</p> Signup and view all the answers

What opportunities does globalization provide for investors worldwide?

<p>Opportunities to invest in the process of supply chain management and logistics (B)</p> Signup and view all the answers

What has been the impact of the Global Financial Crisis on globalization?

<p>It has decreased some countries’ appetite for using imported products or services (C)</p> Signup and view all the answers

Which of the following is NOT a potential disadvantage of globalization?

<p>Increased labor mobility (D)</p> Signup and view all the answers

What is intrinsic gain in the context of globalization?

<p>A side effect or consequence of an activity that generates a benefit beyond profit itself (D)</p> Signup and view all the answers

What can be a potential consequence of globalization on environmental resources?

<p>Reduced environmental quality (D)</p> Signup and view all the answers

What is one example of intrinsic gain mentioned in the text?

<p>Personal growth or education from expanding horizons (A)</p> Signup and view all the answers

What are some of the benefits of globalization mentioned in the text?

<p>Increased choice, higher quality goods, and increased labor mobility (B)</p> Signup and view all the answers

What is a potential political consequence of globalization?

<p>Differences in opportunity (B)</p> Signup and view all the answers

How can globalization contribute to income and wealth inequality?

<p>By creating unequal accrual of economic and financial gains (D)</p> Signup and view all the answers

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