Lesson 4.2.6.1

4.2.6.1 Globalisation Quiz: AQA Economics, Unit 2

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

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Lesson 4.2.6.1, Globalisation: 20 multiple choice questions for the AQA Economics (7136), Unit 2: The national and international economy, written with Revision Ninja.

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The 20 questions

  1. Which factor has been a major cause of accelerating globalisation?

    • Reduced trade barriers
    • Industry nationalisation
    • Capital controls
    • Increased import tariffs

  2. Which of the following is a key characteristic of globalisation?

    • Isolated national markets
    • Fixed exchange rates
    • Decreased international trade
    • Cross-border capital flows

  3. Which process involves multinational corporations investing capital directly into foreign production facilities?

    • Portfolio investment
    • Domestic subsidisation
    • Import tariffs
    • Foreign direct investment

  4. What is a key economic benefit of globalisation for less-developed countries?

    • Lower worker mobility
    • Higher trade tariffs
    • Inward foreign investment
    • Reduced export markets

  5. What is a negative consequence of globalisation for some workers in developed nations?

    • Lower product choices
    • Reduced foreign imports
    • Higher consumer prices
    • Structural job losses

  6. How does increased globalisation generally affect competitive pressure on domestic firms?

    • It reduces competition
    • It increases competition
    • It eliminates competition
    • It has no effect

  7. What type of investment involves a multinational corporation establishing business operations in another country?

    • Foreign direct investment
    • Portfolio investment
    • Protectionist investment
    • Speculative investment

  8. What is the primary negative impact on a home country when an MNC relocates production abroad?

    • Frictional unemployment
    • Cyclical unemployment
    • Structural unemployment
    • Demand-pull inflation

  9. How does an increase in manufacturing exports primarily benefit a developing country's economy?

    • Reduced tax revenues
    • Higher GDP growth
    • Lower export revenue
    • Declining living standards

  10. Which practice allows multinational corporations to minimise their global tax liabilities?

    • Import quotas
    • Tariff imposition
    • Currency pegging
    • Transfer pricing

  11. Which technological advancement has significantly driven modern globalisation by lowering communication costs?

    • Capital controls
    • Fixed exchange rates
    • Protectionist tariffs
    • The internet

  12. What is a primary role of the World Trade Organisation in the global economy?

    • Controlling inflation
    • Providing foreign aid
    • Resolving trade disputes
    • Setting exchange rates

  13. What characteristic describes the easy movement of financial capital across international borders?

    • Import restrictions
    • Financial protectionism
    • Capital mobility
    • Fixed exchange rates

  14. What term describes the relocation of manufacturing processes from developed to developing nations?

    • Protectionism
    • Nationalisation
    • Offshoring
    • Insourcing

  15. What positive long-term economic effect occurs when foreign investment upgrades local infrastructure?

    • Higher productive capacity
    • Capital flight
    • Lower supply
    • Higher structural unemployment

  16. What major export risk do developing countries face when relying heavily on primary commodities?

    • Constant overproduction
    • Price volatility
    • Exchange rate stability
    • Permanent deflation

  17. What term describes the positive indirect benefits, such as technology transfer, local firms gain from MNCs?

    • Import tariffs
    • Negative externalities
    • Tax avoidance
    • Spillover effects

  18. Which environmental issue is directly exacerbated by the increased global transport of traded goods?

    • Ozone recovery
    • Carbon emissions
    • Soil depletion
    • Water desalination

  19. What term describes the transfer of technology and skills from multinationals to host country domestic firms?

    • Capital flight
    • Brain drain
    • Technology spillovers
    • Crowding out

  20. What restricts a national government's ability to set high corporate tax rates in a globalised economy?

    • Import quotas
    • Tax competition
    • Fixed exchange rates
    • Price controls

All AQA Economics quizzes