When IMF grants loans to the nationstates it requires nation

When IMF grants loans to the nation-states, it requires nation-states to adopt specific economic policies aimed at returning their troubled economies to stability and growth.

True or Fasle?

The decline in the share of the United States in the world output reflects the growing economic development and industrialization of the world economy, as opposed to any absolute decline in the health of the U.S. economy.

True or False?

Which of the following statements is true about globalization?

Multiple Choice

We are moving toward a world in which national economies are becoming self-contained entities.

Regulatory and administrative barriers to doing business in foreign nations have been increased.

Globalization has been increasingly helping people protect their jobs from foreign competition.

As a result of globalization, people living in developed nations have the playing field tilted in their favor.

A company does not have to be the size of a multinational giant to facilitate, and benefit from, the globalization of markets.

Solution

STATEMENT

TRUE/FALSE

REMARKS

When IMF Grants loans to the nation states, it requires nation states to adopt specific economic policies aimed at returning their troubled economies to stability and growth

TRUE

Such programs are often called “Structural Adjustment Program” where IMF prescribes a list of actions which include austerity measures to be undertaken by the respective government against promise to offer economic aid by IMF. Such programs though often fought with resistance aim to bring back the economy to stable state

The decline in the share of United States in the world output reflects the growing economic development and industrialization of world economy, as opposed to any absolute decline in the health of US economy

TRUE

GDP of USA continues to grow albeit at a slower rate compared to past and thus there is no absolute decline in US economy. It is rise of new economies e.g. China, India, Brazil, Russia etc whish is making share of GDP of USA in world economy declining

We are moving toward a world in which national economies are becoming self-contained entities

FALSE

National economies are getting more and more integrated with each other and thus today are more dependent on each other

Regulatory and administrative barriers to doing business in foreign nations have been increased

FALSE

Globalization has seen breaking of artificial economic barriers which has earlier been created through regulatory and administrative barriers

Globalization has been increasingly helping people to protect their jobs from foreign competition

FALSE

While the more jobs have been created due to globalization, it has lead to more competition amongst people across the globe for the same job resulting in job losses. Ideal example would be Outsourcing deals for service jobs in USA to more cost competitive countries resulting in shifting of jobs from USA to other nations

Because of globalization, people living in developed nations have the playing field tilted in their favour

FALSE

Many developing countries have witnessed economic growth while economies of developed nations stagnated because of globalization

A company does not have to be the size of a multinational giant to facilitate, and benefit from, the globalization of markets

TRUE