Free Market Economy
Multiple Choice
1. Who is the world leader for providing outsourcing services for Western companies?
a) India
b) China
c) Pakistan
d) Pitcairn Islands
2. Which is NOT a principle of the General Agreement of Tariffs and Trade?
a) Trade must be conducted in a non- discriminatory manner
b) Requiring any country that applied for membership to present a list of tariffs and other trade restrictions imposed
c) Imported goods must be treated in the same manner as similar domestic goods
d) No country may be denied the right of free trade when said country applies.
3. What treaty did Canada sign took a “great step towards freer trade with the U.S.”
a) North American Free Trade Agreement (NAFTA)
b) Agreement of Open Trade(AOT)
c) Free Trade Agreement (FTA)
d) Western Free Trade Agreement (WFTA)
4. In South American the riches 20% of the population holds…
a) 40% of the wealth
b) 60% of the wealth
c) 80% of the wealth
d) 50% of the wealth
5. Why are people more involved in the stock market because of current technology?
a) They can communicate with their brokers better
b) They can talk to their friends about which stocks they are buying
c) They can see stocks online
d) They can use guessing rhymes to pick stocks
6. Countries under the rule of the Soviet Union had which type of economy?
a) Mixed Economy
b) Centrally Planned Economy
c) Market Economy
d) First Come First Serve Economy
7. Of all the countries in the world how many have not signed a single trade agreement?
a) 3
b) 30
c) 7
d) 70
8. In order to become a member of MERCOSUR what must a country be committed to?
a) Freer trade for the people and a higher income
b) A dictatorship rule and human rights
c) Preserving the country’s wealth and cheap labor
d) Democracy and human rights
9. Why does the U.S. think that they should have more access to Canada’s plethora of natural recourses?
a) Because they have more citizen’s
b) Because they run Canada’s trading market
c) Because they are better at dealing with other countries so they should do all the international trading.
10. The European Union only creates 7% of the world’s population. What percent of global imports and exports does it form?
a) 15%
b) 25%
c) 29%
d) 20%
Fill In The Blank
11. The European Union is a collection of 25 countries, the largest and most powerful in the common market.
12. The Cold War ended in 1989 .This was a driving force behind economic globalization.
13. South American countries hop e that by joining trading blocs they will be able to increase investment in their economies.
14. In 1994 the Free Trade Agreement was extended to include Mexico. It created the largest free trade area in the world.
15. By the turn of the millennium an additional three billion people were participating in the global market.
True or False
16. Thomas Freidman refers to international online investment as “the electronic herd.” True
17. There were originally 52 countries that created the UN. False 52
18. The European Union has one common flag. True
19. In 1996 Mexico was accepted in the north America Free Trade Agreement. False 1994
20. The four countries of MERCOSUR have a population of almost 340 million. False 240 million
Long Answer
You are the ruler of Zimbobwada and you have been approached with an agreement for freer trade between you, Canada and the States. However your people have been getting by for a very long time without any help from the outside world. Your company has a vast supply of oil and you generate all your energy from the water power of the ocean. Your country also grows all their own crops, tropical fruits and grains not to mention raises animals for meat. However these supplies, you know well, may one day dwindle. Should you sign the agreement for freer trade? /8
Look for factual information hat clearly supports the opinion they are siding on. Needs at least 4 major points.
