Exam 1: Globalization and Worldwide Infrastructure Development

Currency Board Arrangements allow currencies such as the Euro to have their value determined by a Board of Central Banks

The World Trade Organization was established in 1947-8 to oversee the trade liberalization movement

By 2007, the European Union increased in size to 27 nations

Independently floating currencies have which of the following characteristics; they:

The UN Commission on International Trade laws helps countries set up their own legal systems to deal with intellectual property issues

Currency Board Arrangements have full and free convertibility for their currencies, but central banks must match foreign currency reserves with national money supplies

As companies are privatized, they have few adjustments to make in order to compete effectively in competitive settings

The Free Trade Agreement of the Americas has established a free trade area covering North, Central and South America

The World Bank Group does all of the following except:

Dollar supply consists of dollars being converted back from foreign currencies into US dollars

Today, all countries have their own unique national currencies.

Nations with soft, inconvertible currencies often import more than they export and in so doing build up hard currency debts

Under crawling band exchange rate systems, governments constantly re-peg national currency values within a pre-determined range

Protectionist arguments include all of the following except:

Developed and developing nations both agree that low wage rates are legitimate competitive tools in the world marketplace

The International Telecommunications Union coordinates national telecommunications policies and aids the cross-border standardization of equipment, protocols and operating procedures

When the US currency appreciates in value against major world currencies, currencies pegged to the dollar have problems exporting to non-dollar-based major markets

The Bretton Woods system of exchange rates was based on the gold-dollar evaluation and exchange, with other currencies pegging their exchange rates to the US dollar

In the Gold Standard era, currencies were evaluated in terms of their gold values to establish exchange rate values for currencies

A soft, or inconvertible currency is one that is not acceptable as a means of payment outside of its country of origin