GE-CW- THE CONTEMPORARY WORLD
Final Examination
Read the instructions very carefully.
I-Modified True or False
Determine whether or not the underlined word or group of words is true or false. Write
SUCCESS if the statement is true. Write FAILURE if it is false and rectify it to make the
statement true. (If false, answers shall be written in this manner… FAILURE- Contemporary
world.)
1. Although the idea of market integration traces back to ancient times, the very notion
of it was introduced to the literature only after World War I.
2. The primary sector of the economy gains the raw materials and transforms them into
manufactured goods.
3. All international financial institutions (IFIs) use country tragedy documents, as these
are fundamental to establishing an IFI’s lending priorities for a particular country.
4. The Bretton Woods Agreement was reached by 730 delegates, who were the
representatives of the 54 allied nations that attended the summit.
5. Preferential Trade Areas (PTAs) are created when two or more countries in a region
agree to reduce or eliminate barriers to trade on all goods coming from other membercountries.
6. Since there is no single globalization, the future of the contemporary world is also
uni-dimensional.
7. In a capitalist economy, public officials control productions, consumers, savers,
borrowers and investors by taking over and regulating trade, the flow of capital and
other resources.
8. The World Trade Organization officially commenced on January 1,1996 under the
Marrakesh Agreement, signed by 123 nations on April 15, 1994, replacing the GATT,
which began in 1948.
9. The Industrial Revolution, as a process, began in Spain in the 18th century and from
there spread to other parts of the world.
10. Up to this day, the United Nations is the major force in governing intrastate relations.
11. Liberal economics requires a state to cooperate in the global market through the free
flow of capital, the privatization of services, and fiscal austerity or constraint.
12. The ideology of classical capitalism was expressed in “An Inquiry into the Nature and
Causes of the Wealth of Nations” (1776) by the Scottish economist and philosopher
Adam Smitch, which recommended leaving economic decisions to the free play of
self-regulating market forces.
13. As international trade becomes easier and more widespread, more than just goods and
services are exchanged. Cultural practices and expressions are also passed between
nations, spreading from group to group. This is called globalization. Ideas and
practices spread from where they are well known and frequently apparent to places
where they are new and not often observed.
14. The NATO, as a treaty and international organization, is based on the idea of selective
security.
15. “Global Governance 2035” is the result of an inclusive process, enriched by wideranging consultations with government officials, as well as business, academic, NGO,
think tank leaders and media representatives in Brazil, China, India, Japan, Russia,
South Africa and in the Gulf Region (UAE).
II- ESSAY QUESTIONS
Answer the following questions. Take note of the points given to each item. Write legibly,
clearly and concisely.
1. Explicate the roles and functions of the GATT-WTO. Has the membership of the
Philippines to the GATT-WTO been advantageous and beneficial for its economy?
Why or why not? (5pts.)
2. As an economic system, is capitalism or free-market economy a success or a failure in
the Philippines? What must be done to improve the lives of the greater majority of
Filipinos? Explain your thoughts on the matter. (5 pts.)
3. Compare and contrast the roles and functions of the International Monetary Fund and
the World Bank. Do their existence and operation, as international financial
organizations, serve the purpose(s) of their creation? (10 pts.)
4. How would you describe a regional trade bloc? Does it help in the process of
economic globalization? (5 pts.)
5. In your own analysis and understanding, is there a need for a change in the structure
and composition of the United Nations? Has the U.N. found solutions to the pressing
economic and political problems of the world community? (5 pts.)
GOOD LUCK!!!
Prepared by: Alejandro T. Balbuena, J.D.