PRELIM EXAMINATION

GE 3 THE CONTEMPORARY WORLD

NAME: _________________________________________ DATE: _________________

I. MULTIPLE CHOICE
Direction: Read the following statement and write the letter of your chosen answer on the space provided for each
number.

_____1. According to him, he defined globalization as “the process of interaction and integration among people, companies, and
governments worldwide.”
A. Shalmali Guttal B. Rudd Lubbers C. Anthony Giddens D. Thomas Friedman

_____2. “The inexorable integration of markets, nation-states, and technologies to a degree never witnessed before – in a way that is
enabling individuals, corporations and nation-states to reach around the world farther, faster, deeper, and cheaper than ever before
and in a way that is enabling the world to reach into individuals, corporations, and nation-states farther, faster, deeper, and cheaper
than ever before.”.
A. Shalmali Guttal B. Rudd Lubbers C. Anthony Giddens D. Thomas Friedman

_____3. The intensification of worldwide social relations which link distant localities in such a way that local happenings are shaped by
events occurring many miles away and vice-versa.
A. Shalmali Guttal B. Rudd Lubbers C. Anthony Giddens D. Thomas Friedman

_____4. … A process in which geographic distance becomes less a factor in the establishment and sustenance of border-crossing,
long distance economic, political, and socio-economic relations.
A. Shalmali Guttal B. Rudd Lubbers C. Anthony Giddens D. Thomas Friedman

_____5. The process of greater interdependence among countries and their citizens.
A. Robert J. Carbaugh B. Rudd Lubbers C. Anthony Giddens D. Peter Jay

_____6. Tthe ability to produce any good or service anywhere in the world, using raw materials, components, capital and technology
from anywhere, sell the resulting output anywhere and place the profits anywhere.”
A. Robert J. Carbaugh B. Rudd Lubbers C. Anthony Giddens D. Peter Jay

_____7. The following are characteristics of this new world arrangement except;
A. Global agreements that promote free trade;
B. The opening of China to world trade.
C. An abundance of planetary goods and services that have arisen to fulfill consumer demand
D. Market economies that have replaced state-controlled economies, and privatized firms and services, like water delivery,
formerly operated by governments;

_____8. He primarily concerned with how both psychological and social factors affect the development of individuals.
A. The collapse of communism in the Soviet Union;
B. The development of the internet to organize trade on a global scale;
C. TNCs have taken advantage of the reduction or lowering of trade barriers;
D. International financial institutions that make possible 24-hour trading with new and more-flexible forms of monetary flow

_____9. An open economy promotes technological development and innovation, with fresh ideas from abroad.
A. Advantages B. Disadvantages

_____10. Millions of workers fear getting laid off, especially at those firms in import-competing industries.
A. Advantages Disadvantages
 II. IDENTIFICATION
Direction: Read and identify the following statement write A if the statement refers to advantage of globalization and D if it
refers to disadvantage.

____________1. Productivity increases faster when countries produce goods and services in which they have a comparative
advantage. Living standards can increase more rapidly.
____________2. Global competition and cheap imports keep a constraint on prices, so inflation is less likely to disrupt
economic growth.
_____________3. Millions of workers have lost their jobs because of imports or shifts in production abroad. Most find new
jobs that pay less.
_____________4. Millions of workers fear getting laid off, especially at those firms in import-competing industries.

_____________5. An open economy promotes technological development and innovation, with fresh ideas from abroad.

_____________6. Workers face demands of wage concessions from their employers, which often threaten to export jobs
abroad if wage concessions are not accepted.
_____________7. Jobs in export industries tend to pay about 15 percent more than jobs in import-competing industries.

_____________8. Besides blue-collar jobs, service and white-collar jobs are increasingly vulnerable to operations being sent
overseas.
_____________9. Workers can lose their competitiveness when companies build state-of-the-art factories in low wage
countries, making them as productive as those in the developed countries.
_____________10, Unfettered capital movements provide workers access to foreign investment and maintain low interest
rates.