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 of the following is a cause of globalisation?

    • Increases in tariffs and quotas imposed by governments
    • Restrictions on the movement of capital between countries
    • A fall in the number of multinational corporations
    • Reductions in trade barriers and advances in transport and communications technology

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

    • Growing flows of trade, capital, labour and information across national borders
    • Fixed patterns of production that stay within a single country
    • Declining international trade as countries become more self-sufficient
    • Rising barriers to the movement of people and money between countries

  3. What role do multinational corporations play in globalisation?

    • They operate only within one country and do not invest abroad
    • They set the exchange rates of the countries in which they operate
    • They operate production and sales across many countries and transfer capital, technology and management practices
    • They control the money supply of the countries where they are based

  4. What is one consequence of globalisation for less-developed countries?

    • They lose all access to foreign investment and trade
    • They may gain foreign investment, jobs and export opportunities, but may also face exploitation and volatility
    • They are unaffected because globalisation affects only developed countries
    • They always become wealthy with no risks or downsides

  5. What is one consequence of globalisation for more-developed countries?

    • They lose all their trade with the rest of the world
    • Manufacturing jobs always increase in every sector
    • Cheaper imports and competition may benefit consumers, but some manufacturing jobs may be lost
    • Consumers face higher prices for all goods because of globalisation

  6. How does globalisation affect the level of competition faced by firms?

    • It removes competition, because multinationals always control their markets
    • It has no effect on competition, because prices are fixed by governments
    • It generally increases competition, as firms face rivals from many countries
    • It reduces competition, because trade barriers always increase

  7. Which statement best describes a multinational corporation's role in the global economy?

    • It is a bank that only lends money to domestic households
    • It is a government body that sets trade rules between countries
    • It is a single-country firm that never invests abroad
    • It invests in production facilities in several countries, transferring technology and capital across borders

  8. A multinational relocates its factory to a country with lower wages. What is the most likely effect on jobs in its home country?

    • Jobs are unaffected, because the firm still sells goods in the home market
    • Jobs in the home country always increase, because the firm must hire more staff
    • Jobs increase only in the host country, with no effect at home
    • Jobs in the home country may be lost, though lower costs can help the firm compete

  9. A less-developed country develops manufacturing exports that grow rapidly as it integrates into world trade. What is the most likely effect?

    • The economy becomes less developed, as its trade with the world declines
    • Export earnings fall, because manufacturing cannot be exported
    • Export earnings rise, which can support income growth and industrialisation
    • The exchange rate always falls to zero as exports grow

  10. Evaluate the power of multinational corporations in the global economy.

    • They control the world's exchange rates and set trade policy alone
    • They have no power, because national governments control all decisions
    • They can bring investment and technology, but their size can allow them to avoid taxes and influence policy
    • They always reduce investment in host countries, which is their only effect

  11. Which of the following is a likely cause of globalisation in recent decades?

    • Improvements in communication technology that make it easier to manage international operations
    • A decline in the flow of capital between nations
    • A rise in the number of tariffs imposed between countries
    • Greater restrictions on international travel and migration

  12. What is the main role of the World Trade Organisation in globalisation?

    • It issues the currency used in all member countries
    • It sets interest rates for member countries' central banks
    • It controls the level of foreign direct investment in each country
    • It sets rules for international trade and helps resolve trade disputes between member countries

  13. Which of the following is a characteristic of globalisation in financial markets?

    • Banks ceasing to lend across national borders
    • Increasing integration of financial markets, so capital moves quickly between countries
    • Financial markets becoming fully separate from each other, with no capital flows
    • Governments fixing all exchange rates permanently at the same level

  14. Evaluate whether globalisation has reduced inequality between countries.

    • The evidence is mixed, as some countries have grown rapidly while others have fallen behind, and benefits differ within countries
    • Globalisation has increased inequality between all countries without exception
    • Globalisation has no effect on inequality, because it only affects trade volumes
    • Globalisation has clearly eliminated all inequality between countries in every case

  15. A multinational invests in a less-developed country and builds new roads, power and training facilities. What is the most likely effect?

    • It reduces the skills of the local workforce, as training is always too expensive
    • It can improve infrastructure and skills, which may support wider development
    • It always damages local infrastructure, because firms do not invest in roads
    • It has no effect, because investment affects only the firm's profits

  16. Evaluate the net effect of globalisation on less-developed economies.

    • It is always beneficial, with no risks or costs for any country
    • It has no effect, because less-developed economies are isolated from world trade
    • It can offer growth and jobs but may also expose economies to volatility, weak bargaining power and unequal gains
    • It is always harmful, with no potential benefits for any country

  17. Explain how multinational corporations can transfer technology to host countries.

    • Through reducing domestic investment, so that local firms adopt new methods
    • Through foreign direct investment, training of local workers and the introduction of new production methods
    • Through the sale of government bonds, which carries technology across borders
    • Through the exchange of currencies, which automatically transfers technical knowledge

  18. Evaluate the environmental consequences of globalisation.

    • It can increase pollution and resource use through greater production and transport, though it can also spread cleaner technology
    • It has no environmental effects, because trade affects only money flows
    • It always reduces pollution, because trade removes the need for production
    • It always eliminates pollution in every country that trades

  19. Evaluate whether multinational investment always harms domestic firms in the host country.

    • Yes, multinational investment always destroys every domestic firm in the host country
    • Not always, since domestic firms may gain from supply chains and spillovers, but they can also face strong competition
    • Yes, because multinationals never buy goods or services from local firms
    • No, multinational investment has no effect on domestic firms in any case

  20. Evaluate the effect of globalisation on the sovereignty of national governments.

    • Globalisation can limit policy choices because capital and firms can move, though governments still retain important powers
    • Globalisation removes all economic rules, so governments have no role at all
    • Globalisation gives governments complete control over every international decision
    • Globalisation has no effect on government policy, because all decisions are made by markets

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