Globalization Quiz by Shubhrata Shrestha | Jul 10, 2025 | 0 comments Globalization Quiz 1. What is a key feature of a customs union? A) Use of a common currency B) Common external tariff C) Free migration of labor D) Independent trade policies among members None 2. Trade creation occurs when: A) A country produces less due to inefficient trade B) A country imports from a more efficient producer within a trade bloc C) Domestic firms increase their tariffs D) Imports from non-members become cheaper None 3. One of the negative consequences of globalization is: A) Increase in economies of scale B) Job creation in developing countries C) Technology sharing D) Cultural homogenization None 4. Which of the following is not a feature of a full economic union? A) Harmonized monetary policy B) Common fiscal policy C) Free movement of goods D) Retained national currency None 5. Which of the following is an example of a monetary union? A) Eurozone B) NAFTA C) ASEAN D) MERCOSUR None 6. What happens in trade diversion? A) A country exports to more efficient global producers B) Imports shift from cheaper non-members to costlier members C) Government increases domestic subsidies D) Domestic production becomes more efficient None 7. The main benefit of a free trade area is: A) Shared political institutions B) Unified currency C) Removal of trade barriers among member countries D) Common immigration policy None 8. One of the drivers of globalization is: A) Technological advancement B) Trade diversion C) Exchange rate depreciation D) Inflation targeting None 9. A common consequence of joining a monetary union is: A) Loss of independent monetary policy B) Flexible exchange rates C) Separate central banks D) National currency strengthening None 10. Which of the following is true of trade creation? A) It always harms domestic industries B) It leads to higher prices C) It results in welfare gains through efficient resource allocation D) It involves shifting trade outside the bloc None Time's up Submit a Comment Cancel replyYour email address will not be published. Required fields are marked *Comment * Name * Email * Website Save my name, email, and website in this browser for the next time I comment. Δ
