GE03 MIDTERM EXAM

2023 1st Semester

Name: ___________________________________________________________ Score: ________

I. WORD HUNT. Encircle or shade words that refer to persons, places, events, or concepts we
discussed in our lectures so far (1 point for each word found, a total of 20 words).

O Q B G L O B A L S O U T H T C L M B N
M M L W O R L D B A N K O P F O G A B V
R A A S H F O C A L O R S E E N I G O P
X S C C O N G L O M E R Q F V G O L D D
B C K T R A N S N A T I O N A L G O E N
E A M R I O G U O B A S U N D O R B M A
P R A V Z U E Y E L A N T S K M A A A T
S C R E O T Y C U T E S T H A E I L N I
A I K N N S Q R O I X A A E F R D I D O
F T E T T O U U W N N I E N K A E Z G N
R Y T I A U Q E L D O M I H A T N A U S
E R S O L R C O A J E M M A I I X T I T
E T I G K C Z R A S E M I L L O Y I Z A
T U N A H I D A R T U S A C Y N A O H T
R R K O R N O J P U S P U N S L E N O E
A A S O I G R T E U L A P W D A M U N S
D H H I P R V E R T I C A L L D I P G E
E E K A Z U H A I S U P L L Y S K O L D
E A L I B E R A L I Z A T I O N O H I B
R Q H U T A O Q I Q I T A R I F F S M C

II. IDENTIFICATION. Answers can be found in the word hunt puzzle above. One (1) point for each
correct answer.

1. _______________ is the transfer of activities once performed by an entity to another business,

usually located in another country, which can perform the same activities at a lower cost to the
contracting entity.
2. _______________ used to belong to the Group of Eight (G8), an informal intergovernmental
organization of the world’s leading industrialized countries. It was indefinitely suspended in 2014 for
annexing Crimea, an autonomous republic of Ukraine.
3. A ____________________ corporation is a decentralized structure that operates or facilitates the
production of goods and services in more than one country and not from its home country.
4. A country practices ___________________ when it does not levy taxes, duties, subsidies, or
quotas on the import and export of goods or services from other countries.
5. The adoption of the ______________________, in which participating countries fixed their domestic
currencies in terms of a specified amount of gold, by the United Kingdom, USA, and Europe in the
1800s marked the start of international monetary systems.
6. A _________________ is a government-imposed trade restriction that limits the number or
monetary value of goods that a country can import or export during a particular period.
7. ________________________ are direct taxes applied to goods imported from another country.
 8. The concept of __________________________ generally refers to the contemporary phenomenon
marked by increasing interconnectedness, interdependence, and integration of national economies
brought about by the rapid advancement of technology and the prevalence of Western capitalism.
9. _____________________________ refers to the process or policy of removal or reduction of
restrictions or barriers to free trade between nations.
10. ________________ market integration occurs when a firm or an agency gains control of other firms
or agencies performing similar marketing functions at the same level in the marketing sequence.
11. ___________________________ is the division of economics that deals with the entire economy
(production growth, unemployment rate, inflation, government deficits, exports, and imports).
12. _______________________ are markets where buyers and sellers make transactions without the
government’s approval, also referred to as underground economies.
13. According to Prof. Claudio, the _________________ is a metaphor for interstate inequality and a
product of Western imagination. It connotes developing countries as opposed to rich, industrialized,
and wealthy nations.
14. The Law of _______________ states that when prices go up, people buy less; conversely, when
prices go down, people buy more.
15. The Law of _______________ states that when prices go up, farmers want to produce more;
conversely, when prices go down, farmers want to produce less.

III. MULTIPLE CHOICE. Select the letter of the correct answer (1 point each).
1. The International Monetary Fund regards ____________________ as a historical process
representing the results of human innovation and technological process.
a. cultural globalization b. economic globalization
c. political globalization d. social globalization

2. A type of investment in which a company establishes a business in another country for the
production of goods or services and still takes part in the management of that business.
a. transnational corporation b. business process outsourcing
c. financial capital investment d. foreign direct investment

3. A case in which two or more markets for the same product merge into a single market.
a. market integration b. merger
c. incorporation d. conglomeration

4. The _____________ was established in 1995 to ensure that trade flows as smoothly, predictably,
and freely as possible.
a. General Agreement on Tariffs and Trade b. World Trade Organization (WTO)
(GATT)
c. International Finance Corporation (IFC) d. Trade-Related Investment Measures
(TRIMS)

5. This institution was responsible for funding post-World War II reconstruction projects.
a. World Trade Organization (WTO) b. World Bank (WB) Group
c. International Monetary Fund (IMF) d. United Nations (UN)

6. Brodie (1996) calls this actor of globalization the “midwives” of globalization for its role as a
mediator between the national economy and the other actors of globalization
a. Global corporations b. International monetary systems
c. International financial institutions d. Governments of nation-states

7. From a globalization perspective, this economic strategy is recommended for less developed
countries to compete and succeed in the global economy, the main idea of which is to undercut
the competition by offering lower wages, poorer working conditions, longer hours, etc.
a. Networking b. Race to the bottom
c. Economic liberalization d. Cheap labor
8. Immanuel Wallerstein identified three things that helped create the “modern world-system”, or the
modern capitalist world-economy, in which today’s nation-states are categorized into core,
periphery, or semi-periphery based on their role in the worldwide division of labor. These were the
following EXCEPT
a. Geographical expansion b. Worldwide division of labor
c. Development of core states d. Incorporation

9. China has been adopting economic policies that make Chinese exports to the United States less
expensive and, therefore, more affordable to Americans, thereby hurting American industries. Due
to this, the United States finds itself in this situation in its trade relations with China.
a. Trade surplus b. Trade deficit
c. Aggregate demand d. Aggregate supply

10. In July 1944, 44 capitalist countries led by the United States met at a hotel in New Hampshire,
USA. Which of the following was NOT a fruit of the three-week meeting that led to the
establishment of the Bretton Woods System?
a. Establishment of the IMF b. Currencies were made convertible to US
dollars
c. Exchange rates of currencies were d. The United Nations was founded
established

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