©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
Contemporary World Midterms Exam
Questions and Answers 100% Solved
Economy - ✔✔- process or system by which hoods and services are
produced, sold, and bought in a country or region
Global Economy - ✔✔- economies of countries are more connected from
the extraction, production, distribution, consumption, and disposal of goods
and services
Economic Globalization - ✔✔- refers to the increasing interdependence of
world economies as a result of the growing scale of cross-border trade of
commodities and services, flow of international capital and wide and rapid
spread of technologies
Types of Economies under Economic Globalization - ✔✔Protectionism
Trade Liberalization
Protectionism - ✔✔a policy of systematic government intervention in
foreign trade with the objective of encouraging domestic production. This
,©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
encouragement involves giving preferential treatment to domestic
producers and discriminating against foreign competitors
Protectionism - ✔✔Comes in the forms of tariffs and quotas
Trade Liberalization - ✔✔Free trade
Trade Liberalization - ✔✔Countries sign free trade agreements
Trade Liberalization - ✔✔Transportation and communication
advancements facilitate movement of goods and services around the world
Trade and Globalization - ✔✔- global citizens rely on a network of
communications between countries
Trade and Globalization - ✔✔a. Technology
b. Communications
c. Knowledge
d. Ideas
e. Alliances
Trading Blocks - - ✔✔countries join together and create trade agreements
or alliances
, ©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
European Union (EU) & North American Free Trade Agreement (NAFTA) -
✔✔- example of the most powerful trade alliances tend to be located in
developed countries
Advantages of Trade Alliances - ✔✔1. Encourages trade between member
countries
2. Provide a much larger market to sell goods to and make larger profits
3. Helps safeguard the industries of member countries
4. Free trade between member countries means that there are no tariffs or
quotas imposed on them. Member countries can buy goods on cheaper
prices, Non-Member countries will be charged for taxes or put on a limit on
how much they can export to countries
5. Member governments also subsidize their own industries so that they
can produce cheaper materials and goods
6. The removal of border controls means that it is cheaper and easier to
import and export goods throughout different countries
7. Individual countries have more power, as they are part of the
'superpower' which has enormous influence on the world market
Fair Trade - ✔✔- the result of the pattern of world trade is that the
producers of primary products in developing countries lose out with low
Contemporary World Midterms Exam
Questions and Answers 100% Solved
Economy - ✔✔- process or system by which hoods and services are
produced, sold, and bought in a country or region
Global Economy - ✔✔- economies of countries are more connected from
the extraction, production, distribution, consumption, and disposal of goods
and services
Economic Globalization - ✔✔- refers to the increasing interdependence of
world economies as a result of the growing scale of cross-border trade of
commodities and services, flow of international capital and wide and rapid
spread of technologies
Types of Economies under Economic Globalization - ✔✔Protectionism
Trade Liberalization
Protectionism - ✔✔a policy of systematic government intervention in
foreign trade with the objective of encouraging domestic production. This
,©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
encouragement involves giving preferential treatment to domestic
producers and discriminating against foreign competitors
Protectionism - ✔✔Comes in the forms of tariffs and quotas
Trade Liberalization - ✔✔Free trade
Trade Liberalization - ✔✔Countries sign free trade agreements
Trade Liberalization - ✔✔Transportation and communication
advancements facilitate movement of goods and services around the world
Trade and Globalization - ✔✔- global citizens rely on a network of
communications between countries
Trade and Globalization - ✔✔a. Technology
b. Communications
c. Knowledge
d. Ideas
e. Alliances
Trading Blocks - - ✔✔countries join together and create trade agreements
or alliances
, ©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
European Union (EU) & North American Free Trade Agreement (NAFTA) -
✔✔- example of the most powerful trade alliances tend to be located in
developed countries
Advantages of Trade Alliances - ✔✔1. Encourages trade between member
countries
2. Provide a much larger market to sell goods to and make larger profits
3. Helps safeguard the industries of member countries
4. Free trade between member countries means that there are no tariffs or
quotas imposed on them. Member countries can buy goods on cheaper
prices, Non-Member countries will be charged for taxes or put on a limit on
how much they can export to countries
5. Member governments also subsidize their own industries so that they
can produce cheaper materials and goods
6. The removal of border controls means that it is cheaper and easier to
import and export goods throughout different countries
7. Individual countries have more power, as they are part of the
'superpower' which has enormous influence on the world market
Fair Trade - ✔✔- the result of the pattern of world trade is that the
producers of primary products in developing countries lose out with low
