Globalization and Trade: Grade 6 Social Studies

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Questions and Answers

Considering the multifaceted nature of globalization, which theoretical framework most comprehensively explains the intensification of global interconnectedness alongside the paradoxical resurgence of local identities and protectionist policies?

Dependency theory highlighting the core-periphery dynamics and exploitation of developing nations.
World-systems theory focusing on the global division of labor and the cyclical nature of hegemonic power.
Glocalization, integrating global flows with local adaptation strategies and cultural nuances. (correct)
Neoliberal institutionalism emphasizing free-market principles and minimal state intervention.

The Ricardian model of comparative advantage definitively proves that complete specialization in the production of goods, based solely on relative labor productivity, is always Pareto efficient in a globally integrated market, irrespective of transportation costs, non-tariff barriers, and varying factor endowments.

False (B)

Articulate a sophisticated, multi-criteria definition of 'economic activity' within the context of globalization, that extends beyond simple production and consumption metrics, encompassing factors such as knowledge spillover effects, environmental externalities, and the distribution of welfare gains.

Economic activity, in the context of globalization, involves resource allocation, production, distribution, and consumption of goods and services across international borders, intertwined with knowledge transfer, environmental impact, and welfare distribution. It encompasses interactions, interdependencies, and power dynamics that affect the economic wellbeing of participating nations and communities.

In the context of international trade, a ______ tariff is strategically imposed on imports to counteract subsidies provided by a foreign government to its exporters, aiming to level the playing field and protect domestic industries from unfair competition.

countervailing Signup and view all the answers

Match the following trade concepts with their defining characteristics:

Customs Union = Elimination of trade barriers between member countries and a common external trade policy. Free Trade Area = Elimination of trade barriers among member countries, but each member maintains its own external trade policy. Common Market = A customs union with the addition of free movement of labor and capital among member countries. Economic Union = A common market with the harmonization of economic policies (fiscal and monetary) among member countries. Signup and view all the answers

Which of the following represents the most accurate characterization of the 'Washington Consensus' and its impacts on developing economies?

A set of neoliberal economic policies emphasizing deregulation, privatization, and fiscal austerity, often associated with conditional lending from international financial institutions. (A) Signup and view all the answers

According to the Heckscher-Ohlin theorem, countries will export goods that require intensive use of their scarce factors of production and import goods that require intensive use of their abundant factors of production.

False (B) Signup and view all the answers

Critically evaluate the statement: 'The rise of global value chains (GVCs) has fundamentally altered the nature of international trade, rendering traditional measures of trade balances obsolete.'

Global value chains have significantly transformed international trade by fragmenting production processes across multiple countries. Traditional trade balances, which measure gross flows of goods, may become less informative as they do not reveal the value added by each country within the GVC. Thus, they are not obsolete but need to be complemented by measures that capture value-added trade. Signup and view all the answers

The phenomenon of a country experiencing a decline in its manufacturing sector due to increased international competition, leading to job losses and regional economic distress, is commonly referred to as ______.

deindustrialization Signup and view all the answers

Link the following concepts with their descriptions:

Tariff = A tax imposed on imported goods and services. Quota = A quantitative restriction on the amount of a good that can be imported. Embargo = A complete ban on trade with a particular country or of a particular product. Subsidy = A financial assistance provided by a government to domestic producers. Signup and view all the answers

Flashcards

What is Globalization?

The way the world is connected through trade.

Example of technology aiding globalization?

A technology that allowed people and ideas to go from place to place.