MIDTERM EXAMINATION

The Contemporary World

Name:___________________________ Date:__________________

Course/Yr./Section:________________ Score:_________________

Test I. IDENTIFICATION

Write your answer clearly on the space provided. Avoid Erasures.

1. It represents the logical evolution of a free trade area, eliminates the internal barriers to trade and
established common external barriers.______________________

2. The goal of this strategy is to manage well the cost associated with development, production, and
marketing of a product. _________________________

3. These companies are importers and exporters, typically without investment outside of their home
country. ___________________________

4. The next step in the spectrum of economic integration, allows for free movement of factors of
production including labor, capital and information._____________________

5. It seeks to ensure the stabilization of oil prices in the international oil markets, founded on September
14, 1960. __________________________

6. This strategy is bases on the firm fielding products and consumers perceive as different or
unique.____________________________

7. It is formed when two or more countries agree to abolish all internal barriers to trade among
themselves. _______________________

8. The man- made factors used in a production. ___________________

9. It is the resources used to produced goods and services. ____________________

10. The product created as a result of the combination of inputs in the production process.
______________________

Test II. Definition of Terms

Give a brief description of the following terminology. Avoid erasures.

1. Trade Surplus-

2. Economic globalization-

3. Tariff-

4. Production-

5. Quota-

6. Entrepreneurship-

7. Common market-

8. Goods-

9. Absolute Advantage-

10. Trade deficit -

Test III. FILL IN THE BLANKS

Write your answer on the blanks clearly. Avoid erasures.

1. Four factors of production also known as____________________.

2.__________________ is Mercado Comun del Sur in Spanish.

3. _______________ companies have invested in and are present in many countries

4. _____________________has become the American’s way of life.

5. ASEAN is established on ____________________.

6. Goods are generally thought of as____________________ products, while services are intangible
products.

7. Transnational companies are more _______________organizations which have invested in foreign

operations.

8. South Korea, Taiwan, Singapore and Hong Kong are called “__________” which means they are the
newly industrializing economies.

9. Export subsidies are government payments made to domestic firms to encourage

__________________.
10. ___________________ is the process in which people is set apart for different treatment by virtue of
their statuses, roles, and other social characteristics.

Test IV. ACRONYMS

Define the following acronyms and write it down in all capital letters.

1.APEC-

2.AFTA-

3.EU-

4.MNC-

5.NIE-

6.ASEAN-

7.GDP-

8.JI-

9.EAEC-

10.IMF-

11.CSR-

12.ATM-

13.FDI-

14.OPEC-

15.UNCTC-

16.NAFTA-

17.TNC-

18.UNCTAD-

19.WTO-

20. GATT-

Test V.CLASSIFICATION

Categorize each country inside the box according to the group they belong.
A. ASEAN founding members

1.

2.

3.

4.

4.

6.

B. Eight countries with high oil revenue

1.

2.

3.

4.

5.

6.

7.

8.

C. Six original members of the European community

1.

2.

3.

4.

5.

6.
Test VI. ENUMERATION

Enumerate the following and write your answer at the back of this paper.

A. Four factors of production (4)

B. Competitive Strategies of global corporations (3)

C. GATT three principles (3)

E. Globalization drivers (4)

F. Three major strata of the world (3)

G. Relationship of goods and services (3)