In general, supporters of globalization argue that free trade benefits __________ that adhere to a free trade regime.
All but the largest countries
B. All countries
C. All but the smallest countries
D. All but the countries with the highest wage rates
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Critics use the following argument to suggest that globalization is a contributing factor to an increase in pollution.
A. Globalization results in an increase in the amount of activity that takes place in companies that do not have adequate pollution controls
B. Globalization results in increased commerce between countries, which results in an increase in the amount of transportation activity (e.g., trains, barges, air cargo, trucks, and so on)
C. Firms that operate in countries that have adequate pollution regulations have a tendency to move their manufacturing operations to countries that have less stringent or no pollution controls to avoid the cost of regulation
D. Globalization results in increased production, which has the undesirable side-effects of increased pollution
Supporters of free trade argue that tougher environmental regulations and stricter labor standards __________ economic progress.
A. Diminish
B. Have no impact on
C. Are incompatible with
D. Go hand in hand with
What is the primary purpose of the World Trade Organization?Set tariffs for countries that signed the GATT agreements
A. Monitor the implementation of trade agreements such as NAFTA
B. Arbitrate trade disputes
C. Act as a "watchdog" for countries that lower their pollution standards in an effort to attract more foreign manufacturing activity
D. Set tariffs for countries that signed the GATT agreements
The global economy is moving towards a world in which national economies are merging into an interdependent global economic system, commonly referred to as globalization.
A. TRUE
B. FALSE
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