Question 1

The term, "outsourcing" means

Accepted Answer

A)  turning over part of a production process to an outside supplier often located in another country. 
B)  purchasing raw materials from one country to be used in a production process in another country. 
C)  purchasing finished products from another country. 
D)  a recreational activity involving locating the source of major rivers.

Question 2

In 1998 the International Monetary Fund extended a loan to the South Korean government on the condition that it engaged in extensive privatization. What is "privatization"?

Accepted Answer

A)  The process of selling or giving away public property and enterprises to individuals. 
B)  The process of giving grants or tax breaks to private companies. 
C)  The process of expropriating private property for use by the government. 
D)  The process of allowing private citizens to participate in government.

Question 3

A resident of Dubai buys $1,000,000 in U.S. government bonds. This is an example of

Accepted Answer

A)  international investment. 
B)  international finance. 
C)  international trade. 
D)  international subcontracting.

Question 4

The United States imports approximately $45 billion in automobiles from Japan. If there is a recession in the United States, we can expect

Accepted Answer

A)  U.S. imports of automobiles from Japan will increase. 
B)  U.S. imports of automobiles from Japan will decrease. 
C)  U.S. imports of automobiles from Japan will remain the same. 
D)  United States will import no automobiles from Japan.

Exam 13: Globalization and the Spread of Instability

The term, "outsourcing" means

In 1998 the International Monetary Fund extended a loan to the South Korean government on the condition that it engaged in extensive privatization. What is "privatization"?

A resident of Dubai buys $1,000,000 in U.S. government bonds. This is an example of

The United States imports approximately $45 billion in automobiles from Japan. If there is a recession in the United States, we can expect