Question

25 Match the following with: (A) Specialization; (B) Mercantilism (C) Factor Endowments    ________Nations should export products that intensely use their natural resources;        ________The belief that nations should focus on exporting and discourage imports as a means of building their national wealth.                                                                             ________Free trade encourages nations to export products in which they are more efficient. True/False _____Adam Smith was a Protectionist who supports free trade & globalization.   

26

List 4 of the Top 10 World’s Largest Economies/nations:                                                          (1__________                         (2)_________          (3)__________                  (4)___________              

27

Mark X if True:   Arguments Supporting Globalization include:                                     _____Benefits from sharing wealth & technology between developed & developing nations _____Increasing competition that benefit global consumers with better choice, price & quality _____Global economic growth and the rise of emerging economies such as BRICS.

Answer 1

25. Match the following.

According to standard definition, mercantilism is an economic policy that is designed to maximize the exports and minimize the imports for an economy. Hence correct matches would be :

(A) Specialization — Free trade encourages nations to export products in which they are more efficient.

(B) Mercantilism –The belief that nations should focus on exporting and discourage imports as a means of building their national wealth.

(C) Factor Endowments – Nations should export products that intensely use their natural resources;    

True/False
Adam Smith was a Protectionist who supports free trade & globalization.   

Answer:

The given statement is false because Adam Smith was a classical liberal who held that free trade between nations would lead to accumulation of wealth of the nation. And protectionist never support free trade and globalisation.

26. List 4 of the Top 10 World’s Largest Economies/nations:                                                          
1. the USA
2. China
3. Japan
4. Germany
5. the UK          

27. Mark X if True:  

Arguments Supporting Globalization include:                                   
  ___X__Benefits from sharing wealth & technology between developed & developing nations

____X_Increasing competition that benefits global consumers with better choice, price & quality

___X__Global economic growth and the rise of emerging economies such as BRICS.

All of the above arguments are supporting the phenomenon of globalisation because it results in the sharing of wealth and technology. The increasing competition gives consumers more choices and there is net global economic growth as well.