Question 1

Workers sometimes face demands for wage reductions from their employers, which threaten to export jobs abroad if wage reductions are not accepted.

Accepted Answer

A) True 
 B)False

Question 2

How has technology impacted the globalization of economic activity?

Accepted Answer

A)  Technological innovation has led to decreased mechanization of economic activities. 
B)  Technological innovation and invention have increased productivity. 
C)  The rise of the Internet has increased communication costs in the service industry. 
D)  Technology has led to a greater separation between people and enterprises. 
A)  Technological innovation has led to decreased mechanization of economic activities. 
B)  Technological innovation and invention have increased productivity. 
C)  The rise of the Internet has increased communication costs in the service industry. 
D)  Technology has led to a greater separation between people and enterprises.

Question 3

With globalization and import competition, U.S.prices generally

Accepted Answer

A)  increase. 
B)  decrease. 
C)  remain stable. 
D)  fluctuate wildly. 
A)  increase. 
B)  decrease. 
C)  remain stable. 
D)  fluctuate wildly.

Question 4

Which statement about globalization is true?

Accepted Answer

A)  It has led to more quotas on trade around the world. 
B)  It is a purely economic term used to describe interrelated global markets. 
C)  It has been fueled by trade, immigration, and foreign investment. 
D)  It is the process by which more countries are becoming economically self-sufficient around the globe. 
A)  It has led to more quotas on trade around the world. 
B)  It is a purely economic term used to describe interrelated global markets. 
C)  It has been fueled by trade, immigration, and foreign investment. 
D)  It is the process by which more countries are becoming economically self-sufficient around the globe.

Question 5

Which term describes the ability of a firm/industry, under free and fair market conditions, to design, produce, and market goods and services that are better and/or cheaper than those of other firms/industries?

Accepted Answer

A)  competitiveness 
B)  protectionism 
C)  comparative advantage 
D)  absolute advantage 
A)  competitiveness 
B)  protectionism 
C)  comparative advantage 
D)  absolute advantage

Question 6

The decline of Kodak Inc.in the camera and film business is NOT explained by

Accepted Answer

A)  the rise of Japanese rivals such as Fuji Photo Film Co. 
B)  the development of digital cameras and smart phones that operate as cameras. 
C)  antimonopoly laws that broke Kodak up into small, competing companies. 
D)  constant innovation and attention to changing trends in recreational photography. 
A)  the rise of Japanese rivals such as Fuji Photo Film Co. 
B)  the development of digital cameras and smart phones that operate as cameras. 
C)  antimonopoly laws that broke Kodak up into small, competing companies. 
D)  constant innovation and attention to changing trends in recreational photography.

Question 7

Specialization is an advantage of

Accepted Answer

A)  large-scale production. 
B)  monopolies. 
C)  smaller production runs. 
D)  high wages for foreign workers. 
A)  large-scale production. 
B)  monopolies. 
C)  smaller production runs. 
D)  high wages for foreign workers.

Question 8

Element Electronics decided to locate TV production in America instead of abroad.What influenced this decision?

Accepted Answer

A)  Element Electronics wanted to capitalize off the successful television manufacturing industry in the U.S. 
B)  Element Electronics wanted to create quality manufacturing jobs in the U.S. 
C)  Element Electronics wanted to cut back on labor costs by locating their factory in Detroit. 
D)  Element Electronics wanted to reduce the number of television parts they imported. 
A)  Element Electronics wanted to capitalize off the successful television manufacturing industry in the U.S. 
B)  Element Electronics wanted to create quality manufacturing jobs in the U.S. 
C)  Element Electronics wanted to cut back on labor costs by locating their factory in Detroit. 
D)  Element Electronics wanted to reduce the number of television parts they imported.

Question 9

What is the most important factor that contributes to competitiveness?

Accepted Answer

Key to the concept o

Question 10

The largest amount of trade with the United States in recent years has been conducted with

Accepted Answer

A)  China. 
B)  Germany. 
C)  Canada. 
D)  the United Kingdom. 
A)  China. 
B)  Germany. 
C)  Canada. 
D)  the United Kingdom.

Workers sometimes face demands for wage reductions from their employers, which threaten to export jobs abroad if wage reductions are not accepted.

How has technology impacted the globalization of economic activity?

With globalization and import competition, U.S.prices generally

Which statement about globalization is true?

Which term describes the ability of a firm/industry, under free and fair market conditions, to design, produce, and market goods and services that are better and/or cheaper than those of other firms/industries?

The decline of Kodak Inc.in the camera and film business is NOT explained by

Specialization is an advantage of

Element Electronics decided to locate TV production in America instead of abroad.What influenced this decision?

What is the most important factor that contributes to competitiveness?

The largest amount of trade with the United States in recent years has been conducted with

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

Workers sometimes face demands for wage reductions from their employers, which threaten to export jobs abroad if wage reductions are not accepted.

How has technology impacted the globalization of economic activity?

With globalization and import competition, U.S.prices generally

Which statement about globalization is true?

Which term describes the ability of a firm/industry, under free and fair market conditions, to design, produce, and market goods and services that are better and/or cheaper than those of other firms/industries?

The decline of Kodak Inc.in the camera and film business is NOT explained by

Specialization is an advantage of

Element Electronics decided to locate TV production in America instead of abroad.What influenced this decision?

What is the most important factor that contributes to competitiveness?

The largest amount of trade with the United States in recent years has been conducted with

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