27 Questions
What is the main reason why globalization is considered a complex issue?
It impacts cultural, social, political, and economic aspects
According to Amartya Sen, what does globalization entail?
Greater global closeness in various aspects
What is one of the learning objectives at the end of the lesson on the global economy?
Identifying and discussing the three waves of economic globalization
Why is it important to define economic globalization?
To have a clear understanding of its scope and implications
What is a key consequence of global economic integration according to the text?
Rise in international trade activities
What was the purpose of the Bretton Woods system?
To prevent the catastrophes of the early decades of the century from reoccurring and affecting international ties
Which institution was crafted to reconstruct cities, industries and infrastructure heavily damaged during the war and remove trade barriers between European neighbors and foster commerce with United States?
Marshall Plan
Which institution serves as a global lender of last resort to prevent individual countries from spiraling into credit crises?
International Monetary Fund
Which institution does not just resolve traditional trade issues on tariff and non-tariff barriers, but also on intellectual property rights, trade related investment measures, and food safety standards?
World Trade Organization
What is one of the strategies of the Bretton Woods system that involves extending loans to poor countries which often comes with conditions from the IMF?
Macroeconomic Stability
What is a decline in economic growth and employment which takes place alongside a sharp increase in prices?
Stagflation
What is one of the main criticisms of developed countries in the trade talks under the WTO?
They frequently refuse to lift policies protecting their primary products.
Which country is highlighted as a prime example of refusing to allow rice imports to protect its farming sector?
Japan
What characterizes economic relations between developed and developing countries, according to the text?
Trade imbalances
Who are the primary beneficiaries of global commerce, as mentioned in the text?
Transnational corporations (TNCs)
What is the primary concern of transnational corporations (TNCs) according to the text?
Maximizing profits
How do host countries often respond to the presence of transnational corporations (TNCs) in the text?
Loosening tax laws
What was the primary cause of the stock market crash in 1973-1974?
The United States stopping the link between the dollar and gold
What is the primary reason why developing countries' infant industries needed protection from foreign competition?
They lacked the scale of production of foreign firms
Which country was not targeted by the Arab OPEC members' oil embargo during the 1973 Arab-Israeli War?
Canada
According to the passage, what is one of the conditions often attached to IMF loans to poor countries?
Both a and b
What is the relationship between business people and government officials described in the passage?
Corrupt and crony-based
What economic phenomenon, not predicted by Keynesian economics, resulted from the oil embargo and related events?
Stagflation
Which of the following is NOT identified as a characteristic of the 'Four Asian Tigers' in the passage?
Leaders in manufacturing electronic components and devices
How did the economic turmoil caused by the oil embargo and related events impact economic thinking?
It led to the development of a new form of economic thinking labeled neoliberalism
What is the primary reason why prosperity is difficult to attain in developing countries according to the passage?
Inability to foster good governance and eradicate corruption
What is the primary purpose of the IMF's governance reform efforts in developing countries?
To eradicate corruption and foster good governance
Test your knowledge on the global economy and economic globalization by exploring Chapter 2 of The Contemporary World. Learn about the different waves of economic globalization and their consequences. Recommended time allotment: 3 hours.
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