IB Quiz 1

Globalization has allowed corporations to reduce their costs by

locating their factories in locations where the cost of the factors of production is lowest

The relative decline of the United States in the share of world output and world exports reflects

the growth in the economic development of the world economy.

The ________ is often seen as the lender of last resort.

IMF

Which of the following statements about globalization is NOT true?

It benefits everyone equally and unconditionally.

In the reading, French farmers vandalized an under-construction branch of which international franchise in protest of American trade policies?

McDonald's

The ________ was created in 1944 by 44 nations that met in Bretton Woods, New Hampshire to promote economic development.

World Bank

What organization was created in 1993, during the Uruguay round of trade talks?

World Trade Organization

Opponents of globalization argue that falling trade barriers

allow firms to move production to countries with low wages

Foreign direct investment occurs when a firm invests resources in

business activities outside its home country

Which of the following factors contributed to the Great Depression of the 1930s? Anyone? Anyone?

countries progressively raising trade barriers against each other