Globalization in an International Market
Study Guide Key
Name: __________________________ Date: _____________
Read the following questions and answer them according to the Student Information Guide.
1. C Which of the following is NOT a negative effect of globalization?
a. Spread of infectious diseases.
b. Increase in global food prices.
c. Promotion of free trade.
d. Use of sweatshops by manufacturers.
2. A The North American Free Trade Agreement (NAFTA) was formed on ______ between the countries of ______, _______, and _____.
a. January 1, 1994; Canada, United States, and Mexico
b. December 17, 1991; China, Mexico, and Canada
c. January 1, 1994; Germany, United States, and Mexico
d. December 17, 2005 Canada, Mexico, and England
3. A A supporter of globalization would argue that globalization _______.
a. leads to a more efficient allocation of resources, with all countries involved in the trade benefiting.
b. causes labor unions to be weak.
c. leads to the exploitation of foreign impoverished workers.
d. damages the natural resources of the planet.
True or False:
1. True The two supplements to NAFTA are the North American Agreement on Environmental Cooperation (NAAEC) and the North American Agreement on Labor Cooperation (NAALC).
2. True The goal of NAFTA was to eliminate barriers of trade and investment between the USA, Canada, and Mexico.
1. Define Globalization. Globalization describes an ongoing process by which regional economies, societies, and cultures have become integrated through a globe-spanning network of communication and trade. It refers to the reduction and removal of barriers between national borders in order to facilitate the flow of goods, capital, services, and labor.
2. Briefly explain...