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World Economy General Knowledge Questions

1.

The term “Post-war miracle” is used in context with which of the following countries?
[A]Russia
[B]China
[C]Japan
[D]United States

Japan
Post-war economic miracle refers to the period of 1950s and 60s when Japan, the country which had seen the devastation of atomic bomb, became a global center of manufacturing and exports. In that period, Japan became world’s second largest economy after United States and the Japanese brands such as Toyota, Sony, Honda, Mitsubishi, Panasonic, Canon and so on became household names worldwide.

2.

Which of the following countries is called one of the four Asian Tigers?
[A]India
[B]Japan
[C]China
[D]South Korea

South Korea
The Four Asian Tigers or Four Asian Dragons is a term used in reference to the highly free-market and developed economies of Hong Kong, Singapore, South Korea, and Taiwan. Asian Tigers were recently in news due to devaluations of their currencies. Strong currencies in the Asian tiger countries have made their high-end electronic products like Samsung phones from South Korea and computer parts from Taiwan more expensive in Europe and the United States, their biggest markets. And since China is their main competitor; further devaluation of currencies will weaken Yuan to grater extent. When economies have high exchange rates, their exports tend to lose market share compared with countries with cheaper currencies. And when that happens, countries that depend on foreign trade will frequently take steps to push their currencies lower. The sudden export drop of for manufacturing powerhouses like South Korea and Singapore is worrisome for not only Asian economy, but also for world economy. The fear is that a currency war in Southeast Asia where the Asian financial crisis erupted in 1997 could result in lower growth and add to the already substantial concerns about the global economy this year and next.