Exam 1: The International Economy and Globalization

International trade benefits:

In the late 1990s,Schwinn Inc.closed all of its bicycle manufacturing plants in China and moved them to the United States.

International trade forces domestic firms to become more competitive in terms of:

The development of diesel engines and gas turbines helped reduce transportation costs and thus increase international trade among nations.

Most of the world's population now lives in countries that are:

Today,most Schwinn bicycles are manufactured in

The United States has realized waves of globalization that result from all of the following except

Studies have shown that there is an inverse relationship between

"When the United States sneezes,other nations catch a cold." This statement most closely refers to

The openness ratio is measured by a country's

Which of the following is a fallacy of international trade?

The United States exports a larger percentage of its gross domestic product than Japan,Germany,and Canada.

A sudden shift from import tariffs to free trade may induce short-term unemployment in:

Although free trade provides benefits for consumers,it is often argued that import protection should be provided to domestic producers of strategic goods and materials vital to the nation's security.

Does exposure to competition with the world leader in a particular industry improve a firm's productivity?

Regarding the applicability of free trade to cigarettes,it is correct to say:

In the long run,competitiveness depends on an industry's natural resources,its stock of machinery and equipment,and the skill of its workers in creating goods that people want to buy.

Open economies have more:

Free traders maintain that an open economy is advantageous in that it provides all of the following except:

Countries have balance of trade surpluses when