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Social Studies 10-1

Social Studies 10-1 · Worksheets

The economics of globalization

Ten questions of mixed difficulty, covering The economics. Print it, or work through it on screen — the answer key starts on its own page.

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The economics of globalization

Social Studies 10-1 · maddyhelps.com

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Circle the best answer for each question. Show your work in the space provided.

  1. The strongest argument that free trade reduces poverty is that

    1. a) it has accompanied large falls in extreme poverty in rapidly trading economies
    2. b) it removes all inequality
    3. c) it guarantees good wages
    4. d) it eliminates tariffs

  2. Microcredit is

    1. a) a form of tariff
    2. b) a trade bloc
    3. c) a government grant
    4. d) very small loans to people who cannot access ordinary banking

  3. The International Monetary Fund's main role is to

    1. a) run the United Nations
    2. b) certify fair trade goods
    3. c) lend to countries facing financial crises and monitor economies
    4. d) set tariffs

  4. USMCA, formerly NAFTA, is an agreement between

    1. a) Canada and Britain
    2. b) Canada, the United States and Mexico
    3. c) all of the Americas
    4. d) the G7

  5. Foreign aid is criticised by some on the grounds that it

    1. a) is always too large
    2. b) can create dependency or support poor governance
    3. c) is illegal
    4. d) reduces trade

  6. An economy that specialises according to comparative advantage

    1. a) produces what it makes relatively most efficiently and trades for the rest
    2. b) imports everything
    3. c) sets high tariffs
    4. d) produces everything itself

  7. A developing country is generally one with

    1. a) lower income, and often lower life expectancy and education levels
    2. b) no industry at all
    3. c) a small population
    4. d) no trade

  8. Sustainable development is usually defined as development that

    1. a) happens only in rich countries
    2. b) uses no resources
    3. c) grows the economy fastest
    4. d) meets present needs without compromising future generations' ability to meet theirs

  9. Protectionism is usually defended on the grounds that it

    1. a) lowers consumer prices
    2. b) protects domestic jobs and industries from foreign competition
    3. c) helps exporters
    4. d) increases global trade

  10. A trade bloc is

    1. a) a group of countries that trade on preferential terms
    2. b) a corporation
    3. c) a currency
    4. d) a tariff

Answer key · The economics of globalization

Social Studies 10-1 · maddyhelps.com

  1. a) it has accompanied large falls in extreme poverty in rapidly trading economies — China and parts of Southeast Asia are the usual evidence. The honest qualification is that trade came with industrial policy and state direction, so the causation is contested — and saying so is stronger than claiming it outright.
  2. d) very small loans to people who cannot access ordinary banking — The Grameen Bank is the standard example. Supporters point to businesses started; critics point to high interest rates and mixed evidence on poverty reduction at scale.
  3. c) lend to countries facing financial crises and monitor economies — The World Bank funds development projects and the WTO sets trade rules. Confusing the three is a common and avoidable error in an essay.
  4. b) Canada, the United States and Mexico — It came into force in 2020, replacing NAFTA from 1994. Canadian evidence for both the benefits and the costs of free trade usually starts here.
  5. b) can create dependency or support poor governance — The defence is that targeted aid in health and education demonstrably works. Both positions have evidence, and choosing a position means engaging with the other one.
  6. a) produces what it makes relatively most efficiently and trades for the rest — This is the core argument for trade, and it holds even when one country is better at everything. The objections are about distribution and vulnerability, not about the arithmetic.
  7. a) lower income, and often lower life expectancy and education levels — The terms are contested — Global South, less industrialized, majority world are all used — and noticing that the label itself carries a perspective is worth a mark in a source question.
  8. d) meets present needs without compromising future generations' ability to meet theirs — The Brundtland definition, from 1987. It deliberately joins economic, social and environmental goals, which is why it appears in almost every Related Issue 3 question.
  9. b) protects domestic jobs and industries from foreign competition — The cost is borne by consumers through higher prices, and other countries often retaliate. Stating the trade-off in both directions is what makes an answer analytical.
  10. a) a group of countries that trade on preferential terms — The European Union, USMCA and Mercosur are examples. They lower barriers inside the bloc, which by definition raises the relative barrier for everyone outside it.