Contemporary World Midterm UPDATED
Actual Questions and CORRECT Answers
Economy - CORRECT ANSWER- ✔✔- process or system by which hoods and services are
produced, sold, and bought in a country or region
Global Economy - CORRECT ANSWER- ✔✔- economies of countries are more connected
from the extraction, production, distribution, consumption, and disposal of goods and
services
Economic Globalization - CORRECT ANSWER- ✔✔- 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 - CORRECT ANSWER-
✔✔Protectionism
Trade Liberalization
Protectionism - CORRECT ANSWER- ✔✔a policy of systematic government intervention in
foreign trade with the objective of encouraging domestic production. This encouragement
involves giving preferential treatment to domestic producers and discriminating against
foreign competitors
Protectionism - CORRECT ANSWER- ✔✔Comes in the forms of tariffs and quotas
Trade Liberalization - CORRECT ANSWER- ✔✔Free trade
Trade Liberalization - CORRECT ANSWER- ✔✔Countries sign free trade agreements
Trade Liberalization - CORRECT ANSWER- ✔✔Transportation and communication
advancements facilitate movement of goods and services around the world
, Trade and Globalization - CORRECT ANSWER- ✔✔- global citizens rely on a network of
communications between countries
Trade and Globalization - CORRECT ANSWER- ✔✔a. Technology
b. Communications
c. Knowledge
d. Ideas
e. Alliances
Trading Blocks - - CORRECT ANSWER- ✔✔countries join together and create trade
agreements or alliances
European Union (EU) & North American Free Trade Agreement (NAFTA) - CORRECT
ANSWER- ✔✔- example of the most powerful trade alliances tend to be located in
developed countries
Advantages of Trade Alliances - CORRECT ANSWER- ✔✔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 - CORRECT ANSWER- ✔✔- the result of the pattern of world trade is that the
producers of primary products in developing countries lose out with low wages and poor
standards of living. With little money, they cannot afford essentials such as primary education
for their children and many children are required to work to help the family earn a living
Actual Questions and CORRECT Answers
Economy - CORRECT ANSWER- ✔✔- process or system by which hoods and services are
produced, sold, and bought in a country or region
Global Economy - CORRECT ANSWER- ✔✔- economies of countries are more connected
from the extraction, production, distribution, consumption, and disposal of goods and
services
Economic Globalization - CORRECT ANSWER- ✔✔- 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 - CORRECT ANSWER-
✔✔Protectionism
Trade Liberalization
Protectionism - CORRECT ANSWER- ✔✔a policy of systematic government intervention in
foreign trade with the objective of encouraging domestic production. This encouragement
involves giving preferential treatment to domestic producers and discriminating against
foreign competitors
Protectionism - CORRECT ANSWER- ✔✔Comes in the forms of tariffs and quotas
Trade Liberalization - CORRECT ANSWER- ✔✔Free trade
Trade Liberalization - CORRECT ANSWER- ✔✔Countries sign free trade agreements
Trade Liberalization - CORRECT ANSWER- ✔✔Transportation and communication
advancements facilitate movement of goods and services around the world
, Trade and Globalization - CORRECT ANSWER- ✔✔- global citizens rely on a network of
communications between countries
Trade and Globalization - CORRECT ANSWER- ✔✔a. Technology
b. Communications
c. Knowledge
d. Ideas
e. Alliances
Trading Blocks - - CORRECT ANSWER- ✔✔countries join together and create trade
agreements or alliances
European Union (EU) & North American Free Trade Agreement (NAFTA) - CORRECT
ANSWER- ✔✔- example of the most powerful trade alliances tend to be located in
developed countries
Advantages of Trade Alliances - CORRECT ANSWER- ✔✔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 - CORRECT ANSWER- ✔✔- the result of the pattern of world trade is that the
producers of primary products in developing countries lose out with low wages and poor
standards of living. With little money, they cannot afford essentials such as primary education
for their children and many children are required to work to help the family earn a living
