Question 1

All of the following have been criticisms of globalization and trade policies EXCEPT

Accepted Answer

A)  environmental concerns. 
B)  disadvantages for corporations. 
C)  unfair competition from countries that lack labor standards. 
D)  support of countries with human rights violations like sweatshops. 
A)  environmental concerns. 
B)  disadvantages for corporations. 
C)  unfair competition from countries that lack labor standards. 
D)  support of countries with human rights violations like sweatshops.

Question 2

Which of the following is a fallacy of international trade?

Accepted Answer

A)  Trade is a zero-sum activity. 
B)  Exports increase employment in exporting industries. 
C)  Import restrictions increase employment in import-competing industries. 
D)  Tariffs and quotas reduce trade. 
A)  Trade is a zero-sum activity. 
B)  Exports increase employment in exporting industries. 
C)  Import restrictions increase employment in import-competing industries. 
D)  Tariffs and quotas reduce trade.

Question 3

The most profound influence driving globalization is an increased awareness of global human rights.

Accepted Answer

A) True 
 B)False

Question 4

The natural gas turbine is considered a driver of globalization because the turbine

Accepted Answer

A)  increases efficiency, moving goods from place to place. 
B)  was developed in the United States. 
C)  is associated with increased transportation costs. 
D)  increases the labor input and decreases unemployment. 
A)  increases efficiency, moving goods from place to place. 
B)  was developed in the United States. 
C)  is associated with increased transportation costs. 
D)  increases the labor input and decreases unemployment.

Question 5

A closed economy is one in which

Accepted Answer

A)  imports exactly equal exports, so that trade is balanced. 
B)  domestic firms invest in industries overseas. 
C)  the home economy is isolated from foreign trade. 
D)  technological innovations and improvements in the efficiency of international transport are highly valued. 
A)  imports exactly equal exports, so that trade is balanced. 
B)  domestic firms invest in industries overseas. 
C)  the home economy is isolated from foreign trade. 
D)  technological innovations and improvements in the efficiency of international transport are highly valued.

Question 6

In response to the Great Recession of 2007-2009, the Federal Reserve (Fed) attempted to grow the U.S.economy with a policy called quantitative easing, which would pump more dollars into the economy and cause interest rates to fall.Which of the following was NOT a criticism of the policy?

Accepted Answer

A)  The policy could lead to a depreciation in the dollar's exchange value. 
B)  The policy could improve American competitiveness at other nations' expense. 
C)  The rest of the world's producers could see their exports begin to fall. 
D)  Americans goods would become more expensive for foreign consumers. 
A)  The policy could lead to a depreciation in the dollar's exchange value. 
B)  The policy could improve American competitiveness at other nations' expense. 
C)  The rest of the world's producers could see their exports begin to fall. 
D)  Americans goods would become more expensive for foreign consumers.

Question 7

Open economies are subject to greater firm turnover because open economies

Accepted Answer

A)  trade less than closed economies. 
B)  are more likely to be associated with tariffs than closed economies. 
C)  are associated with increased competition as compared to closed economies. 
D)  draw a less skilled labor force than closed economies. 
A)  trade less than closed economies. 
B)  are more likely to be associated with tariffs than closed economies. 
C)  are associated with increased competition as compared to closed economies. 
D)  draw a less skilled labor force than closed economies.

Question 8

Following World War II, the U.S.

Accepted Answer

A)  became less open. 
B)  focused on technological advancements in industry. 
C)  negotiated increases in trade barriers. 
D)  went through a period of economic isolationism. 
A)  became less open. 
B)  focused on technological advancements in industry. 
C)  negotiated increases in trade barriers. 
D)  went through a period of economic isolationism.

Question 9

Small countries tend to have higher measures of openness than larger countries because

Accepted Answer

A)  their productivity is higher. 
B)  they are more reliant on international trade. 
C)  they are less reliant on international trade. 
D)  they are more economically diverse. 
A)  their productivity is higher. 
B)  they are more reliant on international trade. 
C)  they are less reliant on international trade. 
D)  they are more economically diverse.

Question 10

The term "economic interdependence" implies that the wealth and success of one country impacts the wealth and success of another country.

Accepted Answer

A) True 
 B)False

Question 11

The first wave of globalization was brought to an end by

Accepted Answer

A)  the Great Depression. 
B)  the Second World War. 
C)  the First World War. 
D)  the Smoot-Hawley Act. 
A)  the Great Depression. 
B)  the Second World War. 
C)  the First World War. 
D)  the Smoot-Hawley Act.

Question 12

Today, most Schwinn bicycles are manufactured in

Accepted Answer

A)  China. 
B)  Canada. 
C)  Mexico. 
D)  Germany. 
A)  China. 
B)  Canada. 
C)  Mexico. 
D)  Germany.

Question 13

What are the challenges of the international trading system?

Accepted Answer

The international trading syst

Question 14

North Carolina produces sweet potatoes in its rich soil, but does not have the climate to grow oranges well.It is correct to say that North Carolina has a _________sweet potato production relative to Florida.

Accepted Answer

A)  free trade agreement with 
B)  monopoly on 
C)  comparative advantage in 
D)  trade imbalance with 
A)  free trade agreement with 
B)  monopoly on 
C)  comparative advantage in 
D)  trade imbalance with

Question 15

How does competition impact product quality?

Accepted Answer

International competition provides domes

Question 16

The phrase "When the United States sneezes, the economies of other nations catch a cold" was first used to describe the impact of the economy of the United States on the rest of the world at the end of World War II.This phrase is now

Accepted Answer

A)  more true due to the impact of growing economic interdependence. 
B)  less true due to the impact of growing economic interdependence. 
C)  only true when followed by impacts in the European Union. 
D)  all of these are only true in the case of an economic recession. 
A)  more true due to the impact of growing economic interdependence. 
B)  less true due to the impact of growing economic interdependence. 
C)  only true when followed by impacts in the European Union. 
D)  all of these are only true in the case of an economic recession.

Question 17

In the late 1990s, Schwinn Inc.closed all of its bicycle manufacturing plants in China and moved them to the United States.

Accepted Answer

A) True 
 B)False

Question 18

How has international trade forced domestic firms to become more competitive?

Accepted Answer

International trade has forced

Question 19

During the 1950s, General Motors (GM) was responsible for about 60 percent of all passenger cars produced in the United States.Some criticized GM for

Accepted Answer

A)  encouraging too much market competition. 
B)  failing to use economies of scale in individual plants. 
C)  acquiring monopoly power over the auto market. 
D)  failing to sufficiently dominate the auto market. 
A)  encouraging too much market competition. 
B)  failing to use economies of scale in individual plants. 
C)  acquiring monopoly power over the auto market. 
D)  failing to sufficiently dominate the auto market.

Question 20

Open economies have

Accepted Answer

A)  less competition. 
B)  less firm turnover. 
C)  a more stable labor market. 
D)  more firms entering the market. 
A)  less competition. 
B)  less firm turnover. 
C)  a more stable labor market. 
D)  more firms entering the market.

All of the following have been criticisms of globalization and trade policies EXCEPT

Which of the following is a fallacy of international trade?

The most profound influence driving globalization is an increased awareness of global human rights.

The natural gas turbine is considered a driver of globalization because the turbine

A closed economy is one in which

In response to the Great Recession of 2007-2009, the Federal Reserve (Fed) attempted to grow the U.S.economy with a policy called quantitative easing, which would pump more dollars into the economy and cause interest rates to fall.Which of the following was NOT a criticism of the policy?

Open economies are subject to greater firm turnover because open economies

Following World War II, the U.S.

Small countries tend to have higher measures of openness than larger countries because

The term "economic interdependence" implies that the wealth and success of one country impacts the wealth and success of another country.

The first wave of globalization was brought to an end by

Today, most Schwinn bicycles are manufactured in

What are the challenges of the international trading system?

North Carolina produces sweet potatoes in its rich soil, but does not have the climate to grow oranges well.It is correct to say that North Carolina has a _________sweet potato production relative to Florida.

How does competition impact product quality?

The phrase "When the United States sneezes, the economies of other nations catch a cold" was first used to describe the impact of the economy of the United States on the rest of the world at the end of World War II.This phrase is now

In the late 1990s, Schwinn Inc.closed all of its bicycle manufacturing plants in China and moved them to the United States.

How has international trade forced domestic firms to become more competitive?

During the 1950s, General Motors (GM) was responsible for about 60 percent of all passenger cars produced in the United States.Some criticized GM for

Open economies have

Foundations of Modern Trade Theory Comparative Advantage

Sources of Comparative Advantage

Tariffs

Nontariff Trade Barriers

Trade Regulations and Industrial Policies

Trade Policies for the Developing Nations

Regional Trading Arrangements

International Factor Movements and Multinational Enterprises

The Balance of Payments

Foreign Exchange

Exchange Rate Determination

Mechanisms of International Adjustment

Exchange Rate Adjustments and the Balance of Payments

Exchange Rate Systems and Currency Crises

Filters

Exam 1: The International Economy and Globalization

All of the following have been criticisms of globalization and trade policies EXCEPT

Which of the following is a fallacy of international trade?

The most profound influence driving globalization is an increased awareness of global human rights.

The natural gas turbine is considered a driver of globalization because the turbine

A closed economy is one in which

In response to the Great Recession of 2007-2009, the Federal Reserve (Fed) attempted to grow the U.S.economy with a policy called quantitative easing, which would pump more dollars into the economy and cause interest rates to fall.Which of the following was NOT a criticism of the policy?

Open economies are subject to greater firm turnover because open economies

Following World War II, the U.S.

Small countries tend to have higher measures of openness than larger countries because

The term "economic interdependence" implies that the wealth and success of one country impacts the wealth and success of another country.

The first wave of globalization was brought to an end by

Today, most Schwinn bicycles are manufactured in

What are the challenges of the international trading system?

North Carolina produces sweet potatoes in its rich soil, but does not have the climate to grow oranges well.It is correct to say that North Carolina has a _________sweet potato production relative to Florida.

How does competition impact product quality?

The phrase "When the United States sneezes, the economies of other nations catch a cold" was first used to describe the impact of the economy of the United States on the rest of the world at the end of World War II.This phrase is now

In the late 1990s, Schwinn Inc.closed all of its bicycle manufacturing plants in China and moved them to the United States.

How has international trade forced domestic firms to become more competitive?

During the 1950s, General Motors (GM) was responsible for about 60 percent of all passenger cars produced in the United States.Some criticized GM for

Open economies have

Foundations of Modern Trade Theory Comparative Advantage

Sources of Comparative Advantage

Tariffs

Nontariff Trade Barriers

Trade Regulations and Industrial Policies

Trade Policies for the Developing Nations

Regional Trading Arrangements

International Factor Movements and Multinational Enterprises

The Balance of Payments

Foreign Exchange

Exchange Rate Determination

Mechanisms of International Adjustment

Exchange Rate Adjustments and the Balance of Payments

Exchange Rate Systems and Currency Crises

Filters