Exam 1: The International Economy and Globalization

If a nation has an open economy, it means that the nation allows private ownership of capital.

The "openness ratio" of the U.S.economy in 2015 was approximately 15 percent, the same as in 1890.

The advent of foreign competition forced Kodak Inc.to go into bankruptcy and to cease operating as a producer of cameras and film.

Multilateral trade negotiations have led to

Critics maintain that U.S.trade policies have mainly benefitted large corporations rather than the average American citizen.

The Invacare Corporation, an Ohio-based manufacturer of wheelchairs and other health care equipment, purchases parts and components worldwide and sells its products in 80 nations.Which effect has Invacare experienced as a result of international trade?

International trade generally

The United States was less open to international trade between

A primary reason why nations conduct international trade is because

Most of the world's population now lives in countries that are

Which factor contributed to the bankruptcy of the Schwinn bicycle company?

As an economy opens up to international trade, domestic prices

What are the essential arguments in favor of free trade?

Compared to the 1800s, the "openness ratio" of the U.S.economy had declined by the 2000s.

A sudden shift from import tariffs to free trade may induce short-term unemployment in

A firm needs to reduce its production costs.One alternative to moving the production overseas where labor costs are generally lower is to move production to the southern United States where nonunionized workers are more plentiful.

Although free trade provides benefits for consumers, it is often argued that import protection should be provided to domestic producers of strategic goods and materials vital to the nation's security.

Exporting firms in the United States typically

In the United States, tariffs and quotas are commonly used as tools designed to restrict trade among the fifty states.

Higher costs of transportation and communication, and higher trade barriers, have contributed to increased globalization in recent decades.