1. Briefly explain how globalization encourages worldwide economic growth through trade and labor markets. Also, explain how globalization and technological advancement encourage each other. (4 points) 2. Rapid inflation or deflation can have a domino effect on the global economy. One dramatic example occurred in the first half of the 20th century, when the world faced both the Great Depression and World War II. Briefly explain how rapid inflation and deflation affected the global economy during the Great Depression (1929 - 1938), World War II (1939 - 1945), and the postwar era (1946 - 1950). (4 points) 3. Identify and describe the three most common reasons countries trade, and give an example of each of these trade motivations in action. (4 points) 4. Four of the main types of trade barriers are tariffs, quotas, embargoes, and standards. Define each and briefly describe its economic impact. (4 points) 5. Describe the impact of a strong (appreciating) U.S. dollar and a weak (depreciating) U.S. dollar on both the U.S. economy and the economies of major U.S. trading partners. (4 points) Part II: Application and Critical Thinking (20 points) 6. In the 20th century, the U.S. economy's shift from the gold standard to the Bretton Woods system, and what happened over time as a result, had an important role in changing the United States' standing in the world. Write a short essay on the Bretton Woods system and the global role of the U.S. dollar that addresses the following prompts. a. Explain what the gold standard was, including its connection to the U.S. and world economies in the early 1900s. b. Explain the Bretton Woods system and how it initially affected the global role of the U.S. dollar. c. What was the effect of the Bretton Woods system over time? Explain what happened in the early 1970s that ended the system. How was the status of the U.S. dollar affected as a result?