Unit 5: HOW DOES GLOBAL ECONOMY WORK

Read the text and choose the best answer for each question.
1. According to the passage, what is globalisation primarily characterized by?
A. Increased immigration
B. Integrated trade networks
C. Improved domestic economies
D. Enhanced cultural diversity
2. What is the primary feature of the global economy according to the text?
A. Globalisation
B. International trade
C. International finance
D. Global investment
3. What does the term "comparative advantage" refer to in the context of international trade?
A. A country's ability to produce goods at a lower cost than its competitors
B. A country's ability to import goods at a lower cost than its own production
C. A country's ability to outperform its trading partners in all sectors
D. A country's ability to dominate global markets through subsidies
4. Which investment strategy is mainly emphasized as characteristic of the global economy?
A. Domestic investment
B. Regional investment
C. International investment
D. National investment

Decide if each of the following statements is True (T), False (F), or Not Given (NG).
5. Emerging markets have shown little to no economic growth. F (The increase in the world’s
population has led to emerging markets growing economically, making them one of the primary
engines of world economic growth.)
6. Microeconomics focuses on studying the behavior of households, individuals, and firms in decision-
making processes. T
7. The distribution of income in emerging markets has not been positively impacted by the presence of
large firms and wealthy individuals. F (has positively impacted)
8. Specific GDP growth rates have been projected for emerging market economies beyond the year
2019 T NG

Find an appropriate word from the text to complete each of the following sentences.
9. …………Plagued…………. ERADICATING poverty requires coordinated efforts and
sustainable strategies implemented on a global scale.
10. Globalisation has opened doors for ………Domestic…………… EMERGING economies to
collaborate with established global players, fostering economic growth and innovation.