Chapter 19 Self-test questions

. Which of the following is not a purportedly beneficial outcome of the globalization process?

The redistribution of wealth, addressing disparities in economic and resource allocation across the globe through a sense of greater 'interconnectedness'

Increased social and political interaction among organizations and individuals across the world

Growing interdependence in economic relations, such as trade, investment, finance, and the organization of production globally

A global market that has demonstrated the ability, if left unchecked, to reduce poverty and make substantial economic gains

. Which of the following statements best describes our understanding of the term 'globalization'?

Globalization is the summative term which describes the multiplication and intensification of nearly all forms of human relatedness—including, but not limited to, economic and financial relations.

Globalization is the process by which shared hegemonic values pervade societies across the globe, drawing them into an ideological community, most often based on the economic principles of capitalism.

Globalization is the process of the global community 'shrinking'. Globalization draws people into closer contact with one another primarily at the economic and technical levels. The process began in the early 20th century and was based on the ideological expeditions that originated from Western Europe.

Globalization is a process of technological advancement in communications and travel industries that facilitate the efficient transportation of physical objects, people, and ideas across the globe.

. What is the impact of reducing government expenditure on the poor?

Reduced budget deficit, freeing up money for debt servicing

Reduced health, education, and social welfare spending

Cost of imports rise

All of the above

. Which of the following statements about inequality within nations is true?

There is no convincing evidence that trade liberalization is automatically or always associated with economic growth.

Growth does not necessarily and inevitably translate into development for people in general.

All of these

There is no convincing evidence that trade liberalization is associated with poverty reduction or human development.

. Which of the following is not one of the 10 steps of The Washington Consensus?

Fiscal Discipline: budget deficits of no more than 2 per cent of gross domestic product (GDP)

Tax Reform: broadening the tax base, cut marginal tax rates, improve tax administration

Property Rights: legal reforms to secure property rights without excessive costs and to regularize the informal sector

Nationalization: state enterprises should be protected.

. What is meant by what the World Bank euphemistically calls 'crossing the desert'?

The idea that progress requires hard work

The idea that short-term pain is necessary for long-term success in economic growth and improvements in the quality of life

The idea that economic growth requires resilience and cooperation from both individuals and the state

None of these

. Which of the following are economic objectives of IMF adjustment policies?

Devaluation to promote exports and reduce demand for imports by raising their prices

Tighter monetary and credit policies with higher interest rates to reduce overall demand, and thus demand for imports; to limit or reduce the rate of inflation

Public spending cuts to reduce the budget deficit and slow the growth of government debt.

All of the above

. Which of the following statements best describes the legacy of structural adjustment programmes across the developing world?

Structural adjustment policies have been largely successful in achieving their aims of macroeconomic security in the developing world.

The legacy of structural adjustment programmes shows is, in the majority, positive, with the population of those in extreme poverty decreasing significantly.

There is significant evidence that structural adjustment policies have promoted economic growth and macroeconomic stability in the countries in which they were applied.

Overall, the legacy of structural adjustment programmes has not been positive with the number of people living in extreme poverty increasing.

. Which of the following is an impact of common structural adjustment policies on the poor?

Cost of imports soar, including vital resources such as imported medicines. Basic food prices rise, putting even greater pressure on already stretched household budgets.

Reduced health, education, and social welfare spending and the introduction of cost-recovery and user-fees put healthcare and education beyond the reach of many ordinary people. Public sector redundancies and salary freezes lead to fewer teachers and doctors.

Massive redundancies and increased unemployment with no social security provision push families deeper into poverty. Farmers and small companies can no longer afford to borrow money and are forced to reduce production or go out of business.

All of the above

. How might global inequality present a threat to global security?

Human security is threatened by global inequality, because three quarters of the world population do not share the benefits of globalization. However, this inequality does not translate into political instability or involve military action.

Global inequality creates disenfranchised populations who, although discontented with their situation, lack the agency to rebel or protest.

Revolutionary uprisings are likely to occur; people of the world who have been left behind by neoliberal globalization can become radicalized and rebel against those who have benefited from the economic policies that have failed them.

Global inequality does not present a significant threat to global security.

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