Exam 1: Globalization and Worldwide Infrastructure Development

Political integration of market blocs involves member states sacrificing national political and economic sovereignty to have region-wide fiscal, monetary policies and a common currency

Currency convertibility is all about establishing realistic currency values acceptable to the world's financial currency markets

Developing nations all want strong, appreciating currencies to improve their export and foreign direct investment prospects

Currencies pegged within a horizontal band are allowed to move slightly upwards or downwards around a pre-determined exchange rate

When the US exports to the Euro zone in Western Europe, this increases the supply of dollars leaving the US and increases demand for Euros

The Gold Standard system of establishing currency values in terms of gold survived until the 1970s

Private sector contributions to world development include the activities of global retailers, advances in shipping and aviation, E-commerce and global media development

The growth of public and private infrastructures globally have contributed little to the worldwide expansion of international corporations

When the dollar appreciates against other world currencies, nations whose currencies are pegged to the dollar:

Forward purchases of currencies over 1, 3, and 6 months time frames are available in all world currencies

The Maastricht Agreement determined that countries joining the Euro group should:

When European firms export to the USA, dollars leave the US and create demand for Euros

Strategic industries that many governments feel need protection usually include agriculture, military and nuclear sectors

A major free trade argument is that it promotes global competition that benefits consumers through lower prices and increased varieties of products

The United Nations Commission on International Trade Laws (UNCITRAL) does which of the following:

The World Intellectual Property Organization performs which of the following functions:

The World Intellectual Property Organization's task is to enforce and protect corporate patents on a worldwide basis

The role of the International Monetary Fund in the currency convertibility process is to:

When aggregate demand for dollars exceeds aggregate supply, the dollar is likely to appreciate in value

The exchange arrangement under which a currency is pegged to that of another currency but which is allowed a band of flexibility around a central rate is: