Question

Question 6

Which one of the following is a result of economic globalization?

	a.	loss of jobs in wealthy nations.
	b.	all of them.
	c.	Political centralization.
	d.	cross-cultural understanding.

Question 7

Globalization includes

	a.	increasing international trade.
	b.	all of them.
	c.	the spread of McDonalds around the world.
	d.	the Internet.

Question 8

Globalization is

	a.	increasing reliance on the United Nations.
	b.	the move towards more regional trade associations.
	c.	the process of increasing interdependence among countries and their citizens.
	d.	all of them.

Question 9

Which of the following is an example of globalization?

	a.	American CDs being sold in Japan
	b.	A couple from England vacationing in London
	c.	A Japanese family visits Mount Fuji
	d.	A Ford automobile being sold in Ohio

Question 10

Globalization opens the economy and adds the following flow to the circular flow diagram.

	a.	Domestic household may buy government bonds.
	b.	Firms can hire only domestic workers.
	c.	Domestic firms can sell goods in foreign markets.
	d.	Households can buy goods from domestic companies.

Answer 1

Answer 6) All of them

Explanation- All of the options provided are the effect of globalization; the loss of jobs in wealthy nations occurs because these jobs are transferred to lesser developed countries are labor in these countries is very cheap. The political centralization and cross-cultural understanding come into the picture as countries across the globe are involved.  

Answer 7) All of them

Explanation - All of the points provided in the options are correct as globalization brings countries near to each other and it can certainly result in increasing international trade, the spread of McDonald's around the world, and the spread of the Internet.

Answer 8) All of them

Explanation - increasing reliance on the United Nations, the process of increasing interdependence among countries and their citizens, and the move towards more regional trade associations are some of the key effects of globalization.

Answer 9) American CDs being sold in Japan

Explanation- The American CD being sold in another country such as Japan is a perfect example of globalization.

Answer 10) C) Domestic firms can sell goods in foreign markets

Explanation-  Globalization simply means a process of integration and interaction among different countries, companies, and people; and hence it allows companies to expand their operations in different countries across the globe; hence any domestic company in an open economy can sell their goods in foreign markets under globalization.