4.4.3 Test (T ST): Global Economics Test ' Economics Name: Date: Part I: Short-Answer Questions (20 points) 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)