A Level Economics: Practice Questions on Globalisation

MCQs 

1. Globalisation refers to the increasing interconnectedness and interdependence of economies, cultures, and societies around the world, driven by advancements in technology, transportation, and communication. What key factors have facilitated the movement of goods, services, capital, information, and people across borders?

a) Government intervention and protectionist measures b) Technological advancements, transportation, and communication c) Trade barriers and tariffs d) Currency exchange controls

Solution: b) Technological advancements, transportation, and communication

2. How does globalisation differ from free trade?

a) Globalisation promotes government intervention in trade, while free trade advocates for the removal of trade barriers. b) Globalisation involves only the exchange of goods and services, while free trade encompasses movements of capital, labor, technology, and ideas as well. c) Globalisation aims to create cultural exchange between countries, while free trade focuses solely on economic integration. d) Globalisation is a specific policy approach, while free trade is a broader concept of international integration.

Solution: b) Globalisation involves not only the exchange of goods and services but also movements of capital, labor, technology, and ideas across borders.

3. What are some of the benefits of globalisation?

a) Increased income inequality and job displacement b) Environmental degradation and financial instability c) Access to larger markets, technology and innovation, and cultural exchange d) Dependency on global markets and cultural homogenisation

Solution: c) Access to larger markets, technology and innovation, and cultural exchange

4. Which of the following is NOT a challenge associated with globalisation?

a) Environmental impact and unsustainable resource consumption b) Growing income inequality within countries c) Limited fiscal coordination among member states d) Financial instability due to interconnected global financial markets

Solution: c) Limited fiscal coordination among member states (This is a challenge related to the Eurozone, not specifically to globalisation)

5. The World Trade Organization (WTO) plays a crucial role in policing trade agreements between nations. What is the primary function of the WTO's dispute settlement system?

a) To remove barriers and restrictions on the flow of goods and services b) To monitor and supervise global trade policies and developments c) To facilitate negotiations with countries seeking to join the WTO d) To adjudicate and resolve disputes when member countries violate WTO trade rules

Solution: d) To adjudicate and resolve disputes when member countries violate WTO trade rules

6. What is the role of the WTO's Trade Policy Reviews (TPRs)?

a) To conduct regular reviews of the WTO's performance and effectiveness b) To examine the trade policies and practices of each member country and provide feedback and recommendations c) To promote cultural exchange and appreciation of diversity among nations d) To streamline customs procedures and reduce trade costs for businesses

Solution: b) To examine the trade policies and practices of each member country and provide feedback and recommendations

7. Which of the following is a benefit of an increasingly integrated world economy for the UK?

a) Competition and job displacement b) Access to larger markets and foreign investment c) Currency volatility and environmental concerns d) Political instability and lack of basic services

Solution: b) Access to larger markets and foreign investment

8. What economic challenges are commonly faced by Less Economically Developed Countries (LEDCs)?

a) Income inequality and aging population b) Unemployment and currency volatility c) Poverty and lack of basic services d) Environmental concerns and technological advancements

Solution: c) Poverty and lack of basic services

9. Which example represents a Major Export Sector in the UK?

a) Agriculture and textiles b) Technology and software c) Financial services and insurance d) Heavy machinery and construction equipment

Solution: c) Financial services and insurance

10. What are the economic problems associated with aging population in More Economically Developed Countries (MEDCs)?

a) Unemployment and underemployment b) Income inequality and environmental impact c) Insufficient infrastructure and political instability d) Increased demand for healthcare and pension systems

Solution: d) Increased demand for healthcare and pension systems

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Long Answer Questions

1. What are the key drivers of globalisation, and how have they facilitated the movement of goods, services, capital, information, and people across borders?

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3. Compare and contrast globalisation with free trade, highlighting their respective roles in promoting international integration and economic exchange.

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5. Analyse the benefits and challenges of globalisation, considering its impact on trade, economic growth, cultural exchange, and income inequality among countries.

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7. Evaluate the role of the World Trade Organization (WTO) in policing trade agreements, resolving disputes, and facilitating trade negotiations among member countries.

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9. Assess the economic problems faced by More Economically Developed Countries (MEDCs), Less Economically Developed Countries (LEDCs), and Emerging Economies, and propose potential policy measures to address these challenges for each category of countries.