Write T if the statement is True and F if it is False.
1. Globalization aims to eliminate barriers in trade, investment, and information across
countries.
2. Decoupling refers to emerging economies growing more dependent on industrialized
countries.
3. The IMF primarily works on resolving labor disputes between countries.
4. The World Bank consists of five institutions including the IFC and IDA.
5. WTO’s principle of non-discrimination is known as Most Favored Nation (MFN).
6. Transparency in governance helps reduce corruption and increase investor trust.
7. Competitive markets are encouraged by monopolistic practices.
8. Property rights are fundamental in building investor confidence.
9. The digital divide describes the equal access to technology across all countries.
10.Leapfrogging allows developing nations to skip older technologies.
11.Sustainable development considers both present needs and future generations.
12.Comparative advantage suggests that countries can benefit from trade even without
absolute efficiency.
13.Mercantilism promotes a trade deficit to boost domestic production.
14.Export subsidies are intended to restrict the outflow of goods.
15.ASEAN was formed to promote regional peace and economic growth.
16.NAFTA was replaced by the USMCA in 2020.
17.Political union is the most advanced stage of regional integration.
18.The Balance of Payments only accounts for exports and imports of goods.
19.Currency pegged to the U.S. dollar fluctuates freely in the market.
20.The euro is used by all 27 EU member countries.
Choose the letter that corresponds to the best answer.
21.Which of the following best defines globalization?
A. Total political independence
B. Elimination of trade and cultural barriers
C. Closing borders to imports
D. Complete privatization of firms
22.Which countries are commonly identified as emerging economies?
A. United States and UK
B. France and Japan
C. China and India
D. Canada and Germany
23.What is the main goal of the World Trade Organization?
A. Increase tariffs
B. Promote fair and free trade
C. Monitor migration
D. Control exchange rates
24.Which international institution offers political risk insurance?
A. IMF
B. MIGA
C. WTO
D. ASEAN
25.What does "decoupling" mean in globalization?
A. Merging economies
B. Cutting trade ties completely
C. Developing countries becoming economically independent
D. Rich countries losing influence
26.Which of the following is NOT one of the World Bank Group institutions?
A. IFC
B. ICSID
C. IBRD
D. IMF
27.What does WTO’s Doha Round mainly focus on?
A. Cryptocurrency regulation
B. Agricultural subsidies and services
C. Arms trade
D. Military alliances
28.What is a key feature of adaptive institutions?
A. Centralized power
B. Political censorship
C. Accountability and openness
D. Complete deregulation
29.Which of the following encourages private investment and checks government
power?
A. State monopoly
B. Cronyism
C. Adaptive institutions
D. Import bans
30.What does IT help promote in globalization?
A. Regional isolation
B. Economic stagnation
C. Connectivity and system integration
D. Corruption
31.The term "digital divide" refers to:
A. Economic gap in digital access
B. Global IT network
C. Internet speed in megabytes
D. ICT tax rates
32.What is a benefit of trade?
A. Increased poverty
B. Higher product prices
C. Limited choices
D. Enhanced living standards
33.Comparative advantage is a theory by:
A. Adam Smith
B. David Ricardo
C. Karl Marx
D. Michael Porter
34.Which model explains national competitive advantage through factor and demand
conditions?
A. Absolute advantage
B. Mercantilism
C. Porter’s Diamond Model
D. GSP
35.What is a specific tariff?
A. A fixed tax based on product value
B. A tariff system with price discrimination
C. A fixed dollar amount per unit
D. A duty-free scheme
36.What is a trade surplus?
A. Imports > Exports
B. Exports > Imports
C. Imports = Exports
D. No trade at all
37.Which instrument is NOT typically used in trade policy?
A. Subsidies
B. Tariffs
C. Exchange rates
D. GSP
38.A voluntary export restraint (VER) is:
A. Import tax exemption
B. Agreement to limit exports temporarily
C. Fixed tariff for strategic goods
D. Safety net for consumers
39.Why do governments use export subsidies?
A. Discourage exports
B. Raise prices
C. Promote domestic products abroad
D. Limit capital inflow
40.What is a common reason for managed trade policies?
A. Promoting monopolies
B. Consumer demand
C. Strategic industries and national security
D. Preventing technology use
41.What defines regional economic integration?
A. Political separation
B. Reduced economic collaboration
C. Countries forming larger economic blocs
D. National protectionism
42.The first stage of regional integration is:
A. Customs union
B. Free-trade area
C. Political union
D. Common market
43.Which of the following is a goal of regional integration?
A. Job losses
B. Isolated development
C. Raising employment and living standards
D. Increasing nationalistic policies
44.What is a disadvantage of regional integration?
A. Enhancing cooperation
B. Access to capital
C. Loss of sovereignty
D. Greater market access
45.What describes the European Union’s integration level?
A. Basic FTA
B. Loose coalition
C. Deep economic and monetary union
D. Customs cooperation only
46.Why did the UK vote for Brexit?
A. To join ASEAN
B. For more EU involvement
C. To leave the European Union
D. To ban trade
47.What replaced NAFTA?
A. ASEAN
B. USMCA
C. WTO
D. DR-CAFTA
48.ASEAN promotes:
A. War and military expansion
B. Isolation from global markets
C. Economic growth and political stability
D. One-nation rule
49.Which of the following is a key challenge in Latin American integration?
A. Too much economic unity
B. Excess infrastructure
C. Political disunity
D. Population decrease
50.The exchange rate refers to:
A. Labor prices
B. Stock values
C. Price of one currency in terms of another
D. Commodity values
ANSWER KEY
TRUE OR FALSE MULTIPLE CHOICE
21. B
1. T 22. C
2. F 23. B
3. F 24. B
4. T 25. C
5. T 26. D
6. T 27. B
7. F 28. C
8. T 29. C
9. F 30. C
10.T 31. A
11.T 32. D
12.T 33. B
13.F 34. C
14.F 35. C
15.T 36. B
16.T 37. C
17.T 38. B
18.F 39. C
19.F 40. C
20.F 41. C
42. B
43. C
44. C
45. C
46. C
47. B
48. C
49. C
50. C
