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St. Mary’s College of Borongan

(formerly: St. Joseph’s College)
Borongan City, Eastern Samar
School Year 2018-2019

Preliminary Examination in
The Contemporary World

Test 1. MULTIPLE CHOICE. Choose the correct answer that best fits the statement. Write the letter on the space
provided.
________1. Globalization refers to:
a. A more integrated and interdependent world
b. Less foreign trade and investment
c. Global warming
d. Lower incomes worldwide
_________2. Which one of the following is push factor in emigration?
a. Political freedom c. Higher incomes in host country
b. Job opportunities in host country d. War
_________3. Which of the following do not facilitate globalization?
a. Improvements in communications
b. Barriers to trade and investment
c. Looser immigration controls
d. Removal of controls or movement of capital across borders
_________4. Which of the following constitutes Foreign Direct Investment?
a. A speculator trying to make a profit by buying company shares on a foreign stock exchange
b. A UK energy company buying territory abroad where it expects to find oil reserves
c. A tourist purchasing foreign currency to speak on a holiday abroad
d. A company signing an agreement with a wholesaler to distribute its products in foreign markets
_________5. Which of the following could be defined as a multinational country?
a. A firm that owns shares in a foreign company but does not participate in the company decision making
b. A UK based internet package holiday firm specializing in selling tours to Turkey to German customers
c. A firm owning a chain of supermarket outlets outside its country of origin
d. A finance company transferring its HQ and all its activities from UK to the US
__________6. Which of the following is a driver of globalization?
a. Trade barriers and controls on inflows of foreign direct investment
b. Weak competition
c. Technological advance
d. Economics of scale are being exploited to the maximum
__________7. Globalization is beneficial for firms because;
a. It protects them against foreign competition.
b. It cushions them from the effects of events in other countries
c. It opens up new market opportunities
d. It increases the risk and uncertainty of operating in a globalizing world economy.
__________8. The internet facilitates globalization by:
a. Making it more difficult to contact potential customers abroad.
b. Cutting the cost for firms of communicating across borders.
c. Making it harder to send money from one country to another.
d. Making it easier for governments to censor the information received by their citizens from abroad.
__________9. What might Western Ford MNC’s encounter when launching operations in Africa or the Middle East?
a. No language barriers
b. Customers tastes the same as those of their domestic customers
c. Corruption
d. Well-developed road and rail links
_________10. Globalization can create problems for business because:
a. It can result in more competitions
b. It reduces vulnerability to political risk and risk and uncertainty when operating abroad
c. It means that they can increase prices
d. All of the options given are correct.
_________11. The past two decades of globalization has seen rapid movements in;
a. goods, services and people between countries
b. goods, services and investments between countries
c. goods, investments and people between countries
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d. none of these
__________12. The most common route for investments by MNC’s in countries around yhe world is to:
a. set up new factories
b. by existing local companies
c. form partnership with local companies
d. both (a) and (b)
__________13. Globalization has led to higher standards of living of:
a. well-off consumers
b. poor consumers
c. big producers
d. small producers
__________14. A company that owns or controls production in more than one nation is called:
a. multinational corporation
b. joint stock company
c. global company
d. none of these
__________15. Where do MNC’s choose to set up production?
a. Cheap goods
b. Cheap labour resources
c. Economic sustainability
d. None of these
__________16. Cargill Foods, an MNC has bought over which indigenous INDIAN company?
a. Amul b. Britannia c. Parakh Foods d. Dabur
__________17. Food Motors entered the Indian automobile business in collaboration with which Indian manufacturer?
a. Mahindra and Mahindra
b. Tata Motors
c. Marati Suzuki
d. Hindustan Motors
__________18. What is happening with the impact of Chinese toys in India?
a. Indian toys are selling more
b. Indian consumers are buying less
c. Indian consumers are getting more choice at cheaper rates
d. Chinese consumers are falling short of choice
__________19. Trade between countries:
a. Determines prices of products in different countries
b. Decreases competition between countries
c. Makes a country dependent on the other
d. None of these
__________20. Globalization by connecting countries leads to:
a. Lesser competition among producers
b. Greater competition among producers
c. No competition between producers
d. None of these
__________21. One major factor that has stimulated the globalization process is:
a. Effective utilization of resources
b. Increase in income and wealth
c. Willingness to cooperate
d. Rapid improvement in technology
__________22. If tax is imposed on Chinese toys, what will happen?
a. Chinese toy-makers will benefit
b. Indian toy-makers will prosper
c. Chinese toys will remain cheap
d. Indian consumers will bring more Chinese toys
__________23. Which of the following is an example of trade barrier?
a. Foreign investment
b. Delay or damage of goods
c. Tax on imports
d. None of these
__________24. Removing barriers or restrictions set by the government is called:
a. Globalization b. Investment c. Favourable d. Free trade
__________25. WTO aims at:
a. Establishing rules for domestic trade
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b. Restricting trade practices
c. Liberalizing international trade
d. None of these
__________26. Which of the following industries has a large number of well-off buyers in urban areas?
a. Footwear b. Automobiles c. Jewelry d. Clothing and accessories
_________ 27. Globalization has created new opportunities of:
a. Employment
b. Emerging multinationals
c. Providing services
d. All of the above
_________ 28. One major government initiated to attract foreign companies to invest in India is;
a. To raise the standard of education
b. To promote unemployment in the public sector
c. To build special economic zones
d. Both (a) and (c)
__________ 29. Globalization has posed major challenges for:
a. Big producers
b. Small producers
c. Rural poor
d. None of these
__________30. With the growing competition, most employers these days prefer to employ workers:
a. Flexibly b. quickly c. selectively d. none of these
___________31. Globalization opportunities for paid work for women has denied them;
a. Good health b. good education c. permanent job d. none of these
___________32. Fair globalization world mean:
a. Fair opportunities for all
b. Fair benefits for all
c. More support to small producers
d. All of the above
___________33. Government can make globalization more “fair “by:
a. Increasing competition
b. Increasing employment
c. Implementing the labour laws
d. Imposing trade barriers
___________34. Globalization represents an increasing integration of all of the following except:
a. Economics b. Culture c. Communication d. Morals
___________35. Globalization could not exist without:
a. Increased trade
b. A common religion
c. Global transportation
d. A common currency
___________36. The growth in global communication has
a. been limited to international phone calls
b. meant people now rely on different sources for the news
c. brought information to more people from the same sources
d. decreased the need for the internet
___________37. Economic interchange or interdependence is
a. A decreasing trend in world politics
b. A phenomenon that affects individuals in everyday life
c. A barrier for cultural amalgamation
d. Limited to issues of trade
___________38. Advances in what have rapidly expanded the speed with which merchandize, money, people,
information and ideas move over long distance?
a. Politics b. Technology c. Legal System d. Education
___________39. The Bretton Woods Institution include
a. The United Nations c. The European Union
b. The World Bank d. The International Monetary Fund
___________40. All of the following are examples of the benefits of globalization EXCEPT
a. A rapid economic transformation made the world interdependent
b. There is now a global culture with urbanization and resemblance
c. Globalization is the latest stage of Western Imperialism
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d. The world is becoming more homogeneous, a cosmopolitan culture is developing in which people think
globally
____________41. Resistance to the adoption of a common culture is
a. Directed only at the United States
b. Widespread
c. Limited to France
d. Limited mainly to the Chinese
____________42. Transnationalism results from all of the following except:
a. Increased economic interdependence
b. Increased global communication
c. Increased state sovereignty
d. Increased abstract thinking
____________43. Which of the following concepts is used to describe individuals who adopt a political identification
that does not focus on the nation-state?
a. Nationalism b. patriotism c. transnationalism d. micro nationalism
____________44. What best describes the current trend of transnationalism?
a. Transnationalism has failed to affect international relations
b. Transnationalism has already reached its peak but its waning.
c. Transnationalism continues progress, but it is difficult to determine how long it will continue to grow.
d. Transnationalism has already brought countries under a common government through the UN and
continues to be a strong force.
_____________45. What are some advantages of globalization?
a. More access to worldwide products
b. Communicating with people across the world
c. Ability to communicate with people from various culture and closing the information gap
d. All of the above
_____________46. Organizations that operate across national boundaries and whose membership is composed of
individuals is known as a:
a. IGO b. NGO c. LDC d. MNC
____________47. Which one of the following is a goal of fundamentalist Muslim?
a. A political structure dominated by religious law
b. Preserving majority rule
c. The Islamic dominating of all international political units
d. The inclusion of women in politics
_____________48. What does state convergence do to a person’s life?
a. Convergence leaves consumers empty and disengaged
b. Convergence allows a person to learn new ideas from different cultures
c. Convergence makes persons happy because they now have access to different products
d. Both (a) and (c)
_____________49. Globalization allows large corporation to:
a. Transmit successful technologies to other branches of the company
b. Reduce costs
c. Increase customer satisfaction
d. A and B
e. B and C
____________50. Globalization can also provide benefits for conglomerates in the domestic market by;
a. Increasing the political sway of the conglomerates
b. Providing increased competition
c. Increase consumerism without decreasing advertisements
d. All of the above
e. None of the above

Test II. Answer the following briefly. Write your answer on the blank provided.
51. Describe the contemporary world.
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52. Define globalization
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53. How is globalization affecting nation states?
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54. How is globalization affecting culture?
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55-56. Describe solidity and liquidity for globalization.
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57-58. Differentiate broad and inclusive definitions from that of narrow and exclusive definitions of
globalization.
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59. Is the heightened flow of people a unique feature of the current global era? Justify your answer.
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60. Has globalization facilitated or obstructed greater labor migration?

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Goodluck!