Exam 18: Globalization

Family, language, and customs tie people to particular areas, so that the fact that people have the right to migrate does not mean that large numbers of them will actually do so.

Which of the following is an argument for globalization?

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

Which of the following is not a defining characteristic of globalization?

Identify the correct statement.

Which of the following statements is true?

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 believe that free trade and international investment result in all countries raising their living standards.

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 18.2 -Assume that the foreign exchange market is initially at equilibrium when the demand and supply curves are D1 and S1 respectively. When the demand curve shifts from D1 to D2, the Thai government intervenes to restore the original equilibrium. If Figure 18.2 describes these changes, which of the following will be true?

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 _____.

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?

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

It is a known fact that the same multinational company may pay lower wages to its workers in a developing country than to those in an industrialized country. Why is this not considered an evidence of worker exploitation?

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

Which of the following increases the possibility of depreciation of the domestic currency in the foreign exchange market?

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

The deleveraging of financial institutions led to the financial crisis of 2007-2008 sometimes also referred to as the _____.

The financial crisis of 2007-2008 illustrated how important the integration of international financial markets could be in contributing to the spread of financial problems from one country to another. What solution is cited to curb the spread of financial problems from one country to another?

An overall decline in communication and transportation costs have facilitated global interactions in the twentieth and the twenty first century.

Which of the following is one of the main reasons why China has recently received large amounts of foreign direct investment?