Deck 16: Globalization: Consequences and Controversies

Question 1

According to Oatley,workers in advanced countries are paid more than workers in the developing world primarily because they are

A) more democratically represented in politics.
B) treated more generously by their employers.
C) organized by labor unions.
D) more educated.
E) more productive.

Answer 1

E

Question 2

According to Oatley,what binds the anti-globalization movement is opposition to a global economy that they believe prioritizes

A) advanced industrial country interests over developing country interests.
B) Asian economic development over other developing regions.
C) economic interests over security concerns.
D) corporate and commercial interests over other concerns.
E) political interests over economic interests.

Answer 2

D

Question 3

"Cash labor standards" elaborated in the

Answer 3

C

Question 4

"Core labor standards" elaborated in the

Question 5

According to Oatley,the world economy between 1960 and 2000 grew annually by about

A) 0.5%.
B) 1.0%.
C) 3.5%.
D) 5.0%.
E) 7.0%.

Question 6

The environmental Kuznets curve

A) demonstrates at low income levels environmental damage from economic activity is high.
B) demonstrates as societies begin to industrialize and raise incomes the negative scale effects lessen.
C) demonstrates as societies begin to industrialize and raise incomes the negative structural effects lessen.
D) demonstrates at high income levels the positive effects outweigh the negative effects substantially.
E) is usually graphed in the shape of the letter U.

Question 7

Using Gini coefficient measures instead of the ratio of average incomes in the world's richest country to the average income in the world's poorest country,Oatley concludes that

A) during the last 30 years global income inequality has begun to increase.
B) global inequality is much greater than domestic income inequality in even the most unequal countries.
C) global income inequality increased slowly but erratically between 1820 and 1970.
D) since 1980, the world's poorest societies have grown as fast as the richest countries.
E) between 1960 and 1980, the world's poorest societies grew faster than the world's richest.

Question 8

Given the alternatives,developing country workers have to choose from,a job in a factory engaged in production for export

A) is typically the highest paying option.
B) is somewhat better than jobs in agriculture.
C) is a slightly better paying option.
D) is a slightly lower paying option.
E) is somewhat better than other factory jobs.

Question 9

Oatley implies that the only way to enforce higher global labor standards is to

A) restrict trade with countries violating these rules.
B) appeal to humanitarian interests in advanced industrial countries.
C) appeal to humanitarian interests in developing countries.
D) Establish higher voluntary MNC standards such as those advocated by the OECD.
E) Ask governments of developing countries to enforce more strict rules.

Question 10

Numerous examples of objectionable workplace practices during the last fifteen years have been documented.Which of the following is not cited by Oatley in his analysis of this subject in Chapter 16?

A) Many firms require their workers to work excessively long hours.
B) Workers are often forced to work in abusive environments (safety, harassment, toxic chemicals, etc.).
C) Workers are often forced to lie about illegal activities and abuse to inspectors.
D) Firms sometimes engage in bonded labor schemes.
E) Many developing country firms employ children.

Question 11

Globalization has scale effects that arise from the expansion of economic activity.These scale effects are positive because

A) rising incomes make the cost of environment protection less desirable.
B) as incomes rise, the greater demand for energy will make older sources of energy no longer cost effective.
C) as the scale of economic activity expands, waste generation will increase.
D) the diffusion of improved environmental technology will automatically accompany greater trade and foreign investment.
E) greater pollution is a small price to pay for greater convenience and cheaper consumption.

Question 12

In most instances,the environmental consequences of economic activity are not taken into account through the market.As a result,

A) governmental environmental regulation plays a negative role when it tries to ensure that scale consequences are not negative.
B) governmental environmental regulation plays a negative role when it tries to ensure that structural consequences are positive.
C) forcing producers to pay the social costs of environmental damage is unfair.
D) governmental environmental regulation plays an important role in ensuring that economic consequences are more positive than negative.
E) greater environmental damage will be accepted by society if environmentalists are more active in defending the common societal interest.

Question 13

According to Oatley,although the causal relationship between participation in global economy and growth is debated,which of the following is a correct statement?

A) There are some instances of countries that isolated themselves outperforming countries that integrated into the global economy.
B) There are many instances of countries that isolated themselves outperforming countries that integrated into the global economy.
C) There are no instances of countries that isolated themselves outperforming countries that integrated into the global economy.
D) There is vast evidence that recent improvements in global income inequality were caused by globalization.
E) There is vast evidence that recent improvements in global poverty were caused by globalization.

Question 14

According to Oatley,the sole reason why global income inequality has decreased during the last twenty years is because of

A) lower wages in factories in advanced industrial countries
B) higher wages in factories in advanced industrial countries
C) lower wages in factories in developing countries
D) higher wages in factories in developing countries
E) commercial loans to developing countries.

Question 15

According to Oatley,workers in MNC affiliates compared to locally owned firms

A) are paid by ratio more in high-income countries than in middle-income countries.
B) are paid by ratio more in high-income countries than in low-income countries.
C) are paid by ratio more in middle-income countries than in low-income countries.
D) are paid by ratio less in low-income countries than in middle-income countries.
E) are paid by ratio more in low-income countries than in high-income countries.

Question 16

Recent research suggests that the absolute number of people living in poverty between 1980 and 2008 fell by about

A) 100 million.
B) 300 million.
C) 500 million.
D) 700 million.
E) 900 million.

Question 17

The quest for global rules for improved working conditions in developing countries advocated by NGOs and labor unions in advanced industrial countries are generally rejected by defenders of globalization.Which of the following is not an argument likely to be used by Oatley and the defenders of greater globalization?

A) Improved global labor standards will yield less investment, less production, fewer jobs and a return to poverty.
B) The effort to establish higher labor standards globally is just a ruse for more protectionism by unions in advanced industrial countries.
C) Higher standards are unnecessary because working conditions in the developing world will improve without them.
D) Wages in all societies are linked to productivity not labor market regulations like minimum wage standards.
E) Greater growth of the world economy is driven only by corporate profits, not concern for greater dignity for workers in both developing and developed countries.

Question 18

Poverty reduction has not been distributed evenly across the globe.Which of the following statements is incorrect?

A) Poverty reduction has been the greatest in East Asia.
B) Poverty reduction has been less substantial in South Asia.
C) In Latin America and the Caribbean poverty has hardly fallen at all.
D) In sub-Saharan Africa, the number of people living in poverty rose during the last twenty years.
E) Poverty reduction has not been concentrated in a small number of countries.

Question 19

According to Oatley,annual compensation by MNC affiliates is the

A) highest in the electronic sector in low income countries.
B) highest in the manufacturing sector in high income countries
C) highest in the metals sector in middle-income countries.
D) highest in the petroleum sector in low income countries
E) lowest in the food sector in high income countries

Question 20

Oatley claims that global wage differences are not caused by different labor market regulations but by

A) desperate uneducated workers in developing countries who are easily manipulated.
B) corporate investors who want higher profits available in developing countries.
C) different levels of productivity.
D) different differentials of living costs compared to wage levels.
E) conservative governments who want to undermine labor movements in their own countries.

Question 21

Explain and discuss some of the claims and counter claims about the contemporary effects of globalization in the world economy.

Question 22

Oatley concludes that the fate of the world's poor is in the hands of rather poorly informed American voters.Which of the following concerns is not listed as one of American fears about globalization in the conclusion to Oatley's book?

A) Globalization is eliminating American jobs.
B) Globalization is lowering wages in the United States.
C) Globalization is widening global income inequalities.
D) Globalization is strengthening the power of American MNCs.
E) Growth of global trade is destroying the environment.

Question 23

Global income inequality is much greater than domestic income inequality in even the most unequal countries.

Question 24

Discuss the arguments and evidence Oatley presents to refute the claim that globalization has brought rising inequality and poverty.

Question 25

According to Oatley,"sweatshop" factories are the sole reason why global poverty has fallen by 375 million people during the last twenty years.

Question 26

The defenders of globalization believe that all global economic activity has a positive impact on the environment.

Question 27

According the defenders of globalization and Oatley,globalization is the solution to the problems of income inequality and poverty,not their cause.

Question 28

Total world income has risen much more rapidly during the last 40 years than it did during the nineteenth and first half of the twentieth century.

Question 29

Recent research suggests that the absolute number of people living poverty has grown in the past thirty years.

Question 30

Discuss the arguments and evidence Oatley presents to refute the claim that globalization has created sweatshops whose working conditions represent the cold exploitation of developing-world workers by global capital.

Question 31

Discuss the arguments and evidence antiglobalization critics have cited on abuses in factories in developing countries.

Question 32

Defenders of globalization argue that the adoption of enforceable global labor standards is likely to push people in the developing world back into poverty.

Question 33

Discuss the costs and benefits of the efforts to create global rules to improve working conditions and wages in sweatshop factories.

Question 34

The dynamics of environmental rules and WTO trade principles have produced a lot of vigorous disagreement.Which of the following statements are not likely to be used by defenders of globalization on this issue?

A) Environmental objectives should not restrict trade in any way.
B) Environmental safeguards are simply means to disguise protectionism.
C) Relaxing stringent burdens of proof about environmental damage would result in large income sacrifices for uncertain environmental gains that could be as readily achieved with other methods.
D) Current WTO rules give incentives for countries to "race to the bottom" for the lowest possible environmental standards to attract scarce investment funds.
E) To date, not a single WTO dispute has arisen from trade provisions contained in MEAs.

Question 35

According to Oatley,the current consensus among globalization defenders and environmentalists suggests that globalization can have positive environmental consequences.

Question 36

The dynamics of environmental rules and WTO trade principles have received greater attention than ever before.Which of the following statements are not likely to be used by environmentalists on this issue?

A) If items are produced through two different methods with two very different environmental consequences, they are not like products under WTO rules.
B) Even when WTO rules do allow governments to restrict trade in pursuit of environmental goals, the burden of proof necessary can be insurmountable.
C) Income gains from WTO free trade principles are more important than negative environmental consequences.
D) The WTO should accept as a general principle that any trade restriction applied in connection with an MEA is fully consistent with WTO rules.
E) Environmental safeguards are not simply means to disguise protectionism.

Question 37

According to Oatley,wage differences between high income and low income countries were caused by both labor market regulations and different levels of productivity.

Question 38

The most important element of the climate change issue in the context of WTO rules is that

A) a global climate change regime is based on asymmetrical obligations that severely affect trade competitiveness.
B) border adjustments are essentially non-tariff barriers.
C) border adjustments are inherently discriminatory.
D) the United States refuses to accept a competitive disadvantage for American business.
E) China and India want to achieve a competitive advantage relative to the advanced industrial countries.

Question 39

According to Oatley,globalization has a real public-relations problem that has been created by the antiglobalization movement based on,in many instances,factually incorrect claims.

Question 40

Climate change has emerged as a pressing trade issue.Current estimates indicate that the world's largest emitter of GHGs (greenhouse gas)is

A) The United States.
B) India.
C) Russia.
D) China.
E) Japan.

Question 41

Discuss and analyze the arguments against relying on markets and/or government regulations to generate better working conditions in developing countries.

Question 42

Explain and discuss the critical role of governmental environmental regulations
in influencing the balance between the positive and negative impact of globalization on the environment.

Question 43

Explain and discuss how efforts to craft a fully inclusive global climate change regime have been stymied by conflicts between China and India on one hand and the United States on the other.

Question 44

Discuss and explain how globalization has both positive and negative scale and structural effects on the environment.

Question 45

Discuss and analyze Oatley's claim that the fate of the world's poor is in the hands of rather poorly informed American voters.Do you believe that Oatley's overall arguments about the political costs and economic benefits of globalization were fair and balanced?