Question 1

It has been proved empirically that globalization increases economic growth without increasing income inequality within nations.

Accepted Answer

A) True 
 B)False  True

Question 2

Globalization does not reward countries that follow good economic policies with greater access to the savings of the rest of the world to help finance growth and development.

Accepted Answer

A) True 
 B)False  False

Question 3

The figure given below shows the demand curves for dollars arising out of Thai demand for U.S. goods and services and the supply of dollars arising out of the U.S. demand for Thai goods, services, and financial assets. D₁ and S₁ are the original demand and supply curves.?Figure 18.1
  
-Refer to Figure 18.1. If there were a perception that the value of Thai assets would decrease, the equilibrium exchange rate would move to _____.

Accepted Answer

A)  A 
B)  B 
C)  F 
D)  E 
E)  G 
A)  A 
B)  B 
C)  F 
D)  E 
E)  G E

Question 4

The World Bank tracked the performance of countries that had undergone varying degrees of globalization since the 1960s. Which of the following was a conclusion of the study?

Accepted Answer

A)  The process of globalization widened the gap between rich countries and poor countries. 
B)  The growth rates of globalizing countries were higher than the growth rates of nonglobalizers. 
C)  The fraction of the very poor increased in newly globalized economies. 
D)  Globalization increased income inequality. 
E)  Unemployment increased in newly globalized countries. 
A)  The process of globalization widened the gap between rich countries and poor countries. 
B)  The growth rates of globalizing countries were higher than the growth rates of nonglobalizers. 
C)  The fraction of the very poor increased in newly globalized economies. 
D)  Globalization increased income inequality. 
E)  Unemployment increased in newly globalized countries.

Question 5

Which of the following statements is true?

Accepted Answer

A)  World trade as a fraction of world GDP is much less than it was at the end of the 19th century. 
B)  War decreases the pace of globalization. 
C)  Large countries such as the U.S., Russia, and Japan have high scores in economic integration when measured against the criteria of Foreign Policy magazine. 
D)  Poor countries tend to have high scores in the personal contact area when measured against the criteria of Foreign Policy magazine. 
E)  The U.S. increased its international investments after the September 11, 2001 terrorist attacks to revive their economy. 
A)  World trade as a fraction of world GDP is much less than it was at the end of the 19th century. 
B)  War decreases the pace of globalization. 
C)  Large countries such as the U.S., Russia, and Japan have high scores in economic integration when measured against the criteria of Foreign Policy magazine. 
D)  Poor countries tend to have high scores in the personal contact area when measured against the criteria of Foreign Policy magazine. 
E)  The U.S. increased its international investments after the September 11, 2001 terrorist attacks to revive their economy.

Question 6

In this era of globalization, one of the main reasons why some countries have remained closed to the rest of the world is:

Accepted Answer

A)  the fact that their governments follow policies that explicitly work against economic integration. 
B)  racial discrimination. 
C)  the fact that their governments impose extremely high mortgage taxes. 
D)  the establishment of minimum wages. 
E)  the fact that they are too poor to trade anything with the rest of the world. 
A)  the fact that their governments follow policies that explicitly work against economic integration. 
B)  racial discrimination. 
C)  the fact that their governments impose extremely high mortgage taxes. 
D)  the establishment of minimum wages. 
E)  the fact that they are too poor to trade anything with the rest of the world.

Question 7

Barriers to immigration are much higher in most countries today, than it was in the twentieth century.

Accepted Answer

A) True 
 B)False

Question 8

As the Asian financial crisis of 1997 began to spread, it became obvious to investors that Korean investments would provide lower returns than expected. What was the impact of such a realization on the foreign exchange market?

Accepted Answer

A)  The supply of Korean won decreased as people tried to withdraw their Korean investments. 
B)  The price of dollar in terms of Korean currency decreased as people invested more in U.S. assets. 
C)  The demand for dollars decreased as investors realized that there is a worldwide crisis going on. 
D)  The demand for dollars increased as investors put their money in U.S. and other foreign assets. 
E)  The demand for Korean won increased as investors decided to invest in Korean assets. 
A)  The supply of Korean won decreased as people tried to withdraw their Korean investments. 
B)  The price of dollar in terms of Korean currency decreased as people invested more in U.S. assets. 
C)  The demand for dollars decreased as investors realized that there is a worldwide crisis going on. 
D)  The demand for dollars increased as investors put their money in U.S. and other foreign assets. 
E)  The demand for Korean won increased as investors decided to invest in Korean assets.

Question 9

Critics of globalization argue that international trade agreements represent roadblocks to democratic decision making, because power is decentralized from large international institutions to the local communities in the process.

Accepted Answer

A) True 
 B)False

Question 10

Generally, which of the following is the most common reason why countries that experienced a financial crisis could not maintain their fixed exchange rate?

Accepted Answer

A)  They were exporting too many commodities. 
B)  The rates they had established were not in accordance with directives from the IMF. 
C)  The exchange rate parities established were inconsistent with their corresponding macroeconomic policies. 
D)  The general public refused to participate. 
E)  The parities established made their currencies undervalued. 
A)  They were exporting too many commodities. 
B)  The rates they had established were not in accordance with directives from the IMF. 
C)  The exchange rate parities established were inconsistent with their corresponding macroeconomic policies. 
D)  The general public refused to participate. 
E)  The parities established made their currencies undervalued.

Question 11

Supporters of globalization argue that increased globalization will lead to:

Accepted Answer

A)  increased living standards. 
B)  decreased budget deficits. 
C)  decreased trade deficits. 
D)  currency appreciation. 
E)  monetary stability. 
A)  increased living standards. 
B)  decreased budget deficits. 
C)  decreased trade deficits. 
D)  currency appreciation. 
E)  monetary stability.

Question 12

Countries that have a large number of embassies, have memberships to international organizations, and participate in UN peace missions would be categorized under _____ globalization.

Accepted Answer

A)  cultural 
B)  social 
C)  political 
D)  economic 
E)  ethical 
A)  cultural 
B)  social 
C)  political 
D)  economic 
E)  ethical

Question 13

Poor and developing countries are ranked on the top of the list of globalized countries by the KOF Swiss Economic Institute.

Accepted Answer

A) True 
 B)False

Question 14

The figure given below shows the demand curves for dollars arising out of Thai demand for U.S. goods and services and the supply of dollars arising out of the U.S. demand for Thai goods, services, and financial assets. D₁ and S₁ are the original demand and supply curves.?Figure 18.1
  
-Refer to Figure 18.1. What would happen to the value of the U.S. dollar if there were a perception that the value of Thai assets would decrease?

Accepted Answer

A)  The dollar would depreciate against the baht. 
B)  The dollar would appreciate against the baht. 
C)  The dollar would remain at the same value against the baht. 
D)  The dollar would appreciate depending on the elasticity of demand for bahts. 
E)  The dollar would depreciate depending on the elasticity of demand for bahts. 
A)  The dollar would depreciate against the baht. 
B)  The dollar would appreciate against the baht. 
C)  The dollar would remain at the same value against the baht. 
D)  The dollar would appreciate depending on the elasticity of demand for bahts. 
E)  The dollar would depreciate depending on the elasticity of demand for bahts.

Question 15

Which of the following statements accurately expresses evidence that globalization does not encourage a "race to the bottom" in labor standards?

Accepted Answer

A)  The wages paid by multinational firms to their poor countries' subsidiaries are higher than the wages paid in rich countries. 
B)  Poor countries that participate in globalization have quickly become rich. 
C)  Multinational firms tend to pay higher wages than local firms, but they tend to provide lower benefits than existed in the country prior to globalization. 
D)  Multinational firms must sign contracts with the IMF stating that they will offer exceptional worker benefits. 
E)  Multinational firms tend to pay higher wages than local firms and tend to provide greater benefits for workers than existed in the country prior to globalization. 
A)  The wages paid by multinational firms to their poor countries' subsidiaries are higher than the wages paid in rich countries. 
B)  Poor countries that participate in globalization have quickly become rich. 
C)  Multinational firms tend to pay higher wages than local firms, but they tend to provide lower benefits than existed in the country prior to globalization. 
D)  Multinational firms must sign contracts with the IMF stating that they will offer exceptional worker benefits. 
E)  Multinational firms tend to pay higher wages than local firms and tend to provide greater benefits for workers than existed in the country prior to globalization.

Question 16

The primary international reserve asset is foreign currency, mainly _____.

Accepted Answer

A)  Japanese yen 
B)  eurobonds 
C)  ringgit 
D)  U.S. dollars 
E)  Chinese yuan 
A)  Japanese yen 
B)  eurobonds 
C)  ringgit 
D)  U.S. dollars 
E)  Chinese yuan

Question 17

Which of the following countries had a major financial crisis in 1994?

Accepted Answer

A)  Malaysia 
B)  Russia 
C)  Mexico 
D)  The United States 
E)  Singapore 
A)  Malaysia 
B)  Russia 
C)  Mexico 
D)  The United States 
E)  Singapore

Question 18

What happened to the so-called Asian tigers in the 1960s and 1970s?

Accepted Answer

A)  They underwent a period in which their economies turned into mild communism. 
B)  The literacy rates of these countries declined in this time period (that is, a smaller percentage of the people could read). 
C)  They all became part of the First World. 
D)  They became the most technologically advanced countries in the world. 
E)  They underwent the process of opening their economies and experienced rapid economic growth. 
A)  They underwent a period in which their economies turned into mild communism. 
B)  The literacy rates of these countries declined in this time period (that is, a smaller percentage of the people could read). 
C)  They all became part of the First World. 
D)  They became the most technologically advanced countries in the world. 
E)  They underwent the process of opening their economies and experienced rapid economic growth.

Question 19

Which of the following countries went through a financial crisis in 1997?

Accepted Answer

A)  Russia 
B)  Canada 
C)  Italy 
D)  India 
E)  Korea 
A)  Russia 
B)  Canada 
C)  Italy 
D)  India 
E)  Korea

Question 20

Which of the following would be part of the Thai demand for U.S. dollars?

Accepted Answer

A)  A Thai street seller trying to sell a shirt to an American tourist 
B)  A Thai bank selling dollars it possesses in exchange for euros 
C)  An American exchanging dollars for Thai bahts that she will spend on her next vacation to Bangkok 
D)  A Thai export company selling its products in the American markets 
E)  A Thai importer who wants to buy a Caterpillar tractor 
A)  A Thai street seller trying to sell a shirt to an American tourist 
B)  A Thai bank selling dollars it possesses in exchange for euros 
C)  An American exchanging dollars for Thai bahts that she will spend on her next vacation to Bangkok 
D)  A Thai export company selling its products in the American markets 
E)  A Thai importer who wants to buy a Caterpillar tractor

It has been proved empirically that globalization increases economic growth without increasing income inequality within nations.

Globalization does not reward countries that follow good economic policies with greater access to the savings of the rest of the world to help finance growth and development.

The World Bank tracked the performance of countries that had undergone varying degrees of globalization since the 1960s. Which of the following was a conclusion of the study?

Which of the following statements is true?

In this era of globalization, one of the main reasons why some countries have remained closed to the rest of the world is:

Barriers to immigration are much higher in most countries today, than it was in the twentieth century.

As the Asian financial crisis of 1997 began to spread, it became obvious to investors that Korean investments would provide lower returns than expected. What was the impact of such a realization on the foreign exchange market?

Critics of globalization argue that international trade agreements represent roadblocks to democratic decision making, because power is decentralized from large international institutions to the local communities in the process.

Generally, which of the following is the most common reason why countries that experienced a financial crisis could not maintain their fixed exchange rate?

Supporters of globalization argue that increased globalization will lead to:

Countries that have a large number of embassies, have memberships to international organizations, and participate in UN peace missions would be categorized under _____ globalization.

Poor and developing countries are ranked on the top of the list of globalized countries by the KOF Swiss Economic Institute.

Which of the following statements accurately expresses evidence that globalization does not encourage a "race to the bottom" in labor standards?

The primary international reserve asset is foreign currency, mainly _____.

Which of the following countries had a major financial crisis in 1994?

What happened to the so-called Asian tigers in the 1960s and 1970s?

Which of the following countries went through a financial crisis in 1997?

Which of the following would be part of the Thai demand for U.S. dollars?

The Wealth of Nations: Ownership and Economic Freedom

Scarcity and Opportunity Costs

The Market and Price System

The Aggregate Economy

National Income Accounting

An Introduction to the Foreign Exchapterange Market and the Balance of Payments

Unemployment and Inflation

Macroeconomic Equilibrium: Aggregate Demand and Supply

Aggregate Expenditures

Income and Expenditures Equilibrium

Fiscal Policy

Money and Banking

Monetary Policy

Macroeconomic Policy: Tradeoffs, Expectations, Credibility, and Sources of Business Cycles

Macroeconomic Viewpoints: New Keynesian, Monetarist, and New Classical

Economic Growth

Development Economics

World Trade Equilibrium

International Trade Restrictions

Exchapterange Rates and Financial Links Between Countries

Filters

Exam 18: Globalization

It has been proved empirically that globalization increases economic growth without increasing income inequality within nations.

Globalization does not reward countries that follow good economic policies with greater access to the savings of the rest of the world to help finance growth and development.

The World Bank tracked the performance of countries that had undergone varying degrees of globalization since the 1960s. Which of the following was a conclusion of the study?

Which of the following statements is true?

In this era of globalization, one of the main reasons why some countries have remained closed to the rest of the world is:

Barriers to immigration are much higher in most countries today, than it was in the twentieth century.

As the Asian financial crisis of 1997 began to spread, it became obvious to investors that Korean investments would provide lower returns than expected. What was the impact of such a realization on the foreign exchange market?

Critics of globalization argue that international trade agreements represent roadblocks to democratic decision making, because power is decentralized from large international institutions to the local communities in the process.

Generally, which of the following is the most common reason why countries that experienced a financial crisis could not maintain their fixed exchange rate?

Supporters of globalization argue that increased globalization will lead to:

Countries that have a large number of embassies, have memberships to international organizations, and participate in UN peace missions would be categorized under _____ globalization.

Poor and developing countries are ranked on the top of the list of globalized countries by the KOF Swiss Economic Institute.

Which of the following statements accurately expresses evidence that globalization does not encourage a "race to the bottom" in labor standards?

The primary international reserve asset is foreign currency, mainly _____.

Which of the following countries had a major financial crisis in 1994?

What happened to the so-called Asian tigers in the 1960s and 1970s?

Which of the following countries went through a financial crisis in 1997?

Which of the following would be part of the Thai demand for U.S. dollars?

The Wealth of Nations: Ownership and Economic Freedom

Scarcity and Opportunity Costs

The Market and Price System

The Aggregate Economy

National Income Accounting

An Introduction to the Foreign Exchapterange Market and the Balance of Payments

Unemployment and Inflation

Macroeconomic Equilibrium: Aggregate Demand and Supply

Aggregate Expenditures

Income and Expenditures Equilibrium

Fiscal Policy

Money and Banking

Monetary Policy

Macroeconomic Policy: Tradeoffs, Expectations, Credibility, and Sources of Business Cycles

Macroeconomic Viewpoints: New Keynesian, Monetarist, and New Classical

Economic Growth

Development Economics

World Trade Equilibrium

International Trade Restrictions

Exchapterange Rates and Financial Links Between Countries

Filters