ASSESSMENT 2-1

Direction: Supply the missing word in each statement. Choose the best answer in box.
1. The global economy refers to the interconnected worldwide economic activities that take
place between multiple countries. These economic activities can have either a positive or
negative impact on the countries involved.
2. Due to the global economy and globalization, domestic economies have become cohesive,
leading to an improvement in their performances.
3. International trade is considered to be an impact of globalization. It refers to the exchange of
goods and services between different countries, and it has also helped countries to specialize in
products which they have a comparative advantage in.
4. International finance consists of topics like currency exchange rates and monetary policy.
5. Global investment mainly takes place via foreign direct investment (FDI).
6. Free trade is an excellent method for countries to exchange goods and services.
7. Trade barriers often affect the economies of the trading countries, and in the long run, it
becomes difficult to keep employing such barriers.
8. According to world economic news, US banks participate in many traditional government
businesses like power production, oil refining and distribution, and also the operating of public
assets such as airports and train stations.
9. According to financial and economic projections based on demographic trends and capital
productivity models, the GDP in emerging market economies in 2019 are likely to keep increasing
at a positive rate.
10. Restrictions on the import and export of goods and services can potentially hamper the
economic stability of countries who choose to impose too many.

short-term and long-term investment ✔globalization

✔International trade ✔US banks

✔global economy ✔Free trade

customers ✔Global investment

✔GDP ✔Restrictions

✔International finance exchange goods and services

✔Trade barriers
ASSESSMENT 2-2
Direction: In the discussion on how does the global economy work, it was emphasized that
international transactions taking place between top economies in the world help in the
continuance of the global economy. These transactions mainly comprise trade taking place
between different countries. International trade includes the exchange of a variety of products
between countries. Having these ideas, complete the table below by giving explanations on the
benefits of global economic transactions.

BENEFITS
Providing a foundation for worldwide
economic growth.
Encouraging competitiveness between
countries in various markets.
Raising productivity and efficiency across
countries.
Helping in the development of
underdeveloped countries by allowing them
to import capital goods (machinery and
industrial raw materials) and export primary
goods (natural resources and raw materials).
EXPLANATION
The foundation serves as an interaction
between countries and causes a good
relationship. Therefore, the transaction
between countries becomes easy. It would
be easier to share an idea, concept, and
strategies to maintain the economic stability
of each country.
The competition between countries is also a
useful way to improve the growth of the
nation because most countries don't want to
left behind. This way, competing with other
countries will serve as a way to improve and
has the chance to live better.
Increasing the numbers of being productive
and also the quality of life, changes because
of the improvement of their social status.
They can provide their economic stability,
and also help other near countries around
them.
Importing technology and machinery to
other countries can improve the lives of
people in the economy because it can lessen
the time to produce goods. This can also help
by providing the raw materials they lack in a
certain country and import in other countries
to help them. Therefore, this will benefit
every country.