Question 1

What is reverse­vertical FDI?

Accepted Answer

Reverse­vertical FDI occurs wh

Question 2

Which of the following is an example of reverse­vertical
FDI?

Accepted Answer

A) Ford Motor Company acquires the British firm Jaguar. 
B) Lenovo, a Chinese company, acquires IBM's personal computing business. 
C) Daimler­Benz, a German company, merges with Chrysler Corporation, an American company, to form the
Daimler­Benz Corporation. 
D) General Motors Corporation builds a plant in China to supply Buicks to the Chinese market. 
A) Ford Motor Company acquires the British firm Jaguar. 
B) Lenovo, a Chinese company, acquires IBM's personal computing business. 
C) Daimler­Benz, a German company, merges with Chrysler Corporation, an American company, to form the
Daimler­Benz Corporation. 
D) General Motors Corporation builds a plant in China to supply Buicks to the Chinese market.

Question 3

If the trade­to­GDP ratio is 25% and the overall value of
Trade is $175 billion, then the GDP is:

Accepted Answer

A) $250 billion. 
B) $700 billion. 
C) $1 trillion. 
D) $0.5 trillion. 
A) $250 billion. 
B) $700 billion. 
C) $1 trillion. 
D) $0.5 trillion.

Question 4

One factor mentioned as a reason for the first "golden age"
Of trade was:

Accepted Answer

A) the invention of the cotton gin. 
B) the invention of the wheel. 
C) improved methods of transporting goods. 
D) the invention of the computer. 
A) the invention of the cotton gin. 
B) the invention of the wheel. 
C) improved methods of transporting goods. 
D) the invention of the computer.

Question 5

Which of the following is an example of horizontal FDI?

Accepted Answer

A) Ford Motor Company acquires the British firm Jaguar. 
B) Lenovo, a Chinese company, acquires IBM's personal computing business. 
C) The Venezuelan government acquires the Venezuelan operations of BP, a British petroleum firm. 
D) General Motors Corporation builds a plant in China to supply Buicks to the Chinese market. 
A) Ford Motor Company acquires the British firm Jaguar. 
B) Lenovo, a Chinese company, acquires IBM's personal computing business. 
C) The Venezuelan government acquires the Venezuelan operations of BP, a British petroleum firm. 
D) General Motors Corporation builds a plant in China to supply Buicks to the Chinese market.

Question 6

U.S.and European merchandise trade accounted for
Approximately what share of total world merchandise
(goods) trade in 2010?

Accepted Answer

A) slightly more than one fourth 
B) slightly more than one third 
C) about one half 
D) slightly more than two thirds 
A) slightly more than one fourth 
B) slightly more than one third 
C) about one half 
D) slightly more than two thirds

Question 7

One form of import barrier is an import quota.What is it?

Accepted Answer

A) a limit on the quantity of a certain import 
B) a tax on the value of an import or the imported quantity of a good 
C) a health or safety precaution affecting goods that may cause long­term harm to humans or animals 
D) a bureaucratic rule that can be overridden by the Secretary for International Trade 
A) a limit on the quantity of a certain import 
B) a tax on the value of an import or the imported quantity of a good 
C) a health or safety precaution affecting goods that may cause long­term harm to humans or animals 
D) a bureaucratic rule that can be overridden by the Secretary for International Trade

Question 8

What entries are used to calculate a country's bilateral
Trade balance?

Accepted Answer

A) its unemployment and inflation rates 
B) its exports to and imports from another country. 
C) its per capita income and imports 
D) its exports and per capita income 
A) its unemployment and inflation rates 
B) its exports to and imports from another country. 
C) its per capita income and imports 
D) its exports and per capita income

Question 9

What ushered in the "second golden age" of trade?

Accepted Answer

A) the increase in trade among countries in the period after World War II 
B) the introduction of the gold standard 
C) the increase in trade restrictions as a reaction to the Smoot­Hawley tariff act 
D) the decline in volume of trade among the industrialized countries 
A) the increase in trade among countries in the period after World War II 
B) the introduction of the gold standard 
C) the increase in trade restrictions as a reaction to the Smoot­Hawley tariff act 
D) the decline in volume of trade among the industrialized countries

Question 10

Which of the following is an example of horizontal FDI?

Accepted Answer

A) China invests $10 billion in Somalia. 
B) German investors buy the Chicago Cubs baseball team. 
C) Sri Lanka invests $10 billion in Bangladesh. 
D) Bulgaria buys a golf course in Nigeria. 
A) China invests $10 billion in Somalia. 
B) German investors buy the Chicago Cubs baseball team. 
C) Sri Lanka invests $10 billion in Bangladesh. 
D) Bulgaria buys a golf course in Nigeria.

Question 11

After 1945, world trade:

Accepted Answer

A) grew more slowly than in the decade before World War II. 
B) grew more rapidly than in the decade before World War II. 
C) grew in absolute dollar terms but not as a ratio of GDP. 
D) fell both in absolute and relative terms. 
A) grew more slowly than in the decade before World War II. 
B) grew more rapidly than in the decade before World War II. 
C) grew in absolute dollar terms but not as a ratio of GDP. 
D) fell both in absolute and relative terms.

Question 12

Is most immigration from low­income to high­income
countries?

Accepted Answer

No, less than one­half of migration occu

Question 13

Which of the following transactions is NOT a trade flow?

Accepted Answer

A) domestic residents' purchases of foreign­made goods 
B) domestic residents' purchases of foreign­provided services 
C) domestic residents' purchases of foreign stocks and bonds 
D) domestic residents' purchases of foreign­produced software 
A) domestic residents' purchases of foreign­made goods 
B) domestic residents' purchases of foreign­provided services 
C) domestic residents' purchases of foreign stocks and bonds 
D) domestic residents' purchases of foreign­produced software

Question 14

In the United States, one third of the foreign­born workers
Come from:

Accepted Answer

A) China. 
B) Philippines. 
C) Mexico. 
D) the Dominican Republic. 
A) China. 
B) Philippines. 
C) Mexico. 
D) the Dominican Republic.

Question 15

Foreign direct investment between two industrialized
Countries is called:

Accepted Answer

A) vertical FDI. 
B) horizontal FDI. 
C) industrial FDI. 
D) reverse­vertical FDI. 
A) vertical FDI. 
B) horizontal FDI. 
C) industrial FDI. 
D) reverse­vertical FDI.

Question 16

Why do European Union nations have the world's highest
volume of internal trade among themselves?

Accepted Answer

Because of their size, many smaller Euro

Question 17

Exports are:

Accepted Answer

A) goods or services purchased from a foreign resident. 
B) goods or services sold to foreign residents. 
C) goods only sold to foreigners-you cannot sell services to foreigners. 
D) services only-exports do not include goods. 
A) goods or services purchased from a foreign resident. 
B) goods or services sold to foreign residents. 
C) goods only sold to foreigners-you cannot sell services to foreigners. 
D) services only-exports do not include goods.

Question 18

What country was the world's largest exporter of goods in
2012?

Accepted Answer

A)  USA 
B) China 
C) Germany 
D) the United States 
E) Japan 
A)  USA 
B) China 
C) Germany 
D) the United States 
E) Japan

Question 19

The greatest amount of FDI is:

Accepted Answer

A) vertical FDI. 
B) horizontal FDI. 
C) third­party FDI. 
D) between the United States and Mexico. 
A) vertical FDI. 
B) horizontal FDI. 
C) third­party FDI. 
D) between the United States and Mexico.

Question 20

If country X has a GDP of $1 trillion and exports $200
Billion to country Y and imports $300 billion from country
Y, then its bilateral trade balance with country Y is:

Accepted Answer

A) -$100 billion. 
B) $100 billion. 
C) $500 billion. 
D) 50%. 
A) -$100 billion. 
B) $100 billion. 
C) $500 billion. 
D) 50%.

What is reversevertical FDI?

Which of the following is an example of reversevertical FDI?

If the tradetoGDP ratio is 25% and the overall value of Trade is $175 billion, then the GDP is:

One factor mentioned as a reason for the first "golden age" Of trade was:

Which of the following is an example of horizontal FDI?

U.S.and European merchandise trade accounted for Approximately what share of total world merchandise (goods) trade in 2010?

One form of import barrier is an import quota.What is it?

What entries are used to calculate a country's bilateral Trade balance?

What ushered in the "second golden age" of trade?

Which of the following is an example of horizontal FDI?

After 1945, world trade:

Is most immigration from lowincome to highincome countries?

Which of the following transactions is NOT a trade flow?

In the United States, one third of the foreignborn workers Come from:

Foreign direct investment between two industrialized Countries is called:

Why do European Union nations have the world's highest volume of internal trade among themselves?

Exports are:

What country was the world's largest exporter of goods in 2012?

The greatest amount of FDI is:

If country X has a GDP of $1 trillion and exports $200 Billion to country Y and imports $300 billion from country Y, then its bilateral trade balance with country Y is:

Trade and Technology: the Ricardian Model

Gains and Losses From Trade in the Specific-Factors Model

Trade and Resources: the Heckscher-Ohlin Model

Movement of Labor and Capital Between Countries

Increasing Returns to Scale and Monopolistic Competition

Import Tariffs and Quotas Under Perfect Competition

Import Tariffs and Quotas Under Imperfect Competition

International Agreements: Trade, Labor, and the Environment

Introduction to Exchange Rates and the Foreign Exchange Market

Exchange Rates I: the Monetary Approach in the Long Run

Filters

Exam 1: The Global Economy

What is reverse­vertical FDI?

Which of the following is an example of reverse­vertical FDI?

If the trade­to­GDP ratio is 25% and the overall value of Trade is $175 billion, then the GDP is:

One factor mentioned as a reason for the first "golden age" Of trade was:

Which of the following is an example of horizontal FDI?

U.S.and European merchandise trade accounted for Approximately what share of total world merchandise (goods) trade in 2010?

One form of import barrier is an import quota.What is it?

What entries are used to calculate a country's bilateral Trade balance?

What ushered in the "second golden age" of trade?

Which of the following is an example of horizontal FDI?

After 1945, world trade:

Is most immigration from low­income to high­income countries?

Which of the following transactions is NOT a trade flow?

In the United States, one third of the foreign­born workers Come from:

Foreign direct investment between two industrialized Countries is called:

Why do European Union nations have the world's highest volume of internal trade among themselves?

Exports are:

What country was the world's largest exporter of goods in 2012?

The greatest amount of FDI is:

If country X has a GDP of $1 trillion and exports $200 Billion to country Y and imports $300 billion from country Y, then its bilateral trade balance with country Y is:

Trade and Technology: the Ricardian Model

Gains and Losses From Trade in the Specific-Factors Model

Trade and Resources: the Heckscher-Ohlin Model

Movement of Labor and Capital Between Countries

Increasing Returns to Scale and Monopolistic Competition

Import Tariffs and Quotas Under Perfect Competition

Import Tariffs and Quotas Under Imperfect Competition

International Agreements: Trade, Labor, and the Environment

Introduction to Exchange Rates and the Foreign Exchange Market

Exchange Rates I: the Monetary Approach in the Long Run

Filters

What is reversevertical FDI?

Which of the following is an example of reversevertical FDI?

If the tradetoGDP ratio is 25% and the overall value of Trade is $175 billion, then the GDP is:

Is most immigration from lowincome to highincome countries?

In the United States, one third of the foreignborn workers Come from: