Question 1

Which of the following is NOT an example of a non-tariff barrier?

Accepted Answer

A)  A subsidy 
B)  Health and safety regulations 
C)  Antidumping duties 
D)  Taxes 
A)  A subsidy 
B)  Health and safety regulations 
C)  Antidumping duties 
D)  Taxes

Question 2

Which best defines a quota?

Accepted Answer

A)  Taxes assessed on goods coming into a country 
B)  The selling of a product as a price below the cost in the home market 
C)  A restriction on the quantity of goods that can be imported to or exported from a country 
D)  All of these are true. 
A)  Taxes assessed on goods coming into a country 
B)  The selling of a product as a price below the cost in the home market 
C)  A restriction on the quantity of goods that can be imported to or exported from a country 
D)  All of these are true.

Question 3

The United States ended its steel tariffs in response to a WTO ruling because it feared retaliatory tariffs from the EU.

Accepted Answer

A) True 
 B)False

Question 4

The GATT principle that called for mutual lowering of trade barriers between trading partners was known as _____ .

Accepted Answer

A)  reciprocity 
B)  convertibility 
C)  nondiscrimination 
D)  outsourcing 
A)  reciprocity 
B)  convertibility 
C)  nondiscrimination 
D)  outsourcing

Question 5

How might the growth of FDI produce a level of social homogeneity?

Accepted Answer

A)  Countries adopt similar institutions to facilitate economic activity. 
B)  FDI conveys technologies and corporate practices across borders. 
C)  FDI leads countries to adopt one another's norms. 
D)  All of these are true. 
A)  Countries adopt similar institutions to facilitate economic activity. 
B)  FDI conveys technologies and corporate practices across borders. 
C)  FDI leads countries to adopt one another's norms. 
D)  All of these are true.

Question 6

The mercantilist school of thought posits that states can maximize their wealth and welfare by

Accepted Answer

A)  playing an active role in the economy and accumulating resources. 
B)  letting the "invisible hand" control economic decisions. 
C)  opening trade borders and removing barriers to trade. 
D)  focusing on industries in which they have a comparative advantage. 
A)  playing an active role in the economy and accumulating resources. 
B)  letting the "invisible hand" control economic decisions. 
C)  opening trade borders and removing barriers to trade. 
D)  focusing on industries in which they have a comparative advantage.

Question 7

We're always encouraged to "buy domestic."  It is politically popular to support policies that limit import competition and reduce the number of jobs that are outsourced to other countries.  According to liberal economic trade theory, however, these policies and the accompanying encouragement to buy domestic-made goods are actually harming our overall welfare in the long-run.  Explain why liberal theory knows this to be true.  Do you agree with the conclusions of liberal theory?  If not,  why?

Accepted Answer

Protectionism are barriers to foreign tr

Question 8

The primary goal of the GATT was to open or liberalize world trade using the principles of reciprocity, nondiscrimination, and transparency.

Accepted Answer

A) True 
 B)False

Question 9

How might the Prisoner's Dilemma from Chapter 9 apply to free trade and protectionism?

Accepted Answer

A)  All states have an incentive to cooperate in free trade policies, and those who do not cooperate are excluded from the global system. 
B)  Even though it is in everyone's best interest for all states to have free trade, individual states have an incentive to enact protectionist policies. 
C)  Free trade is the most desirable outcome in the global economy; therefore, all states will comply with the global norms of cooperation. 
D)  Trade is bad for people who are incarcerated. 
A)  All states have an incentive to cooperate in free trade policies, and those who do not cooperate are excluded from the global system. 
B)  Even though it is in everyone's best interest for all states to have free trade, individual states have an incentive to enact protectionist policies. 
C)  Free trade is the most desirable outcome in the global economy; therefore, all states will comply with the global norms of cooperation. 
D)  Trade is bad for people who are incarcerated.

Question 10

In The Wealth of Nations, Adam Smith argues for the idea of a nation specializing in goods in which it has a comparative advantage.

Accepted Answer

A) True 
 B)False

Question 11

Rules governing international commerce often evolve according to the wishes of the powerful.
(a) How useful is hegemonic stability theory in accounting for the creation and stability of the postwar international economic regime?
(b) Describe the problems that arise when the hegemon is no longer able to effectively carry out its role.

Accepted Answer

At the systemic level, one of the most i

Question 12

Mercantilists differ from liberalists in all of the following ways except,

Accepted Answer

A)  mercantilists do not see wealth and economic growth as ends in themselves. 
B)  liberalists treat all specializations as equal in value; mercantilists do not. 
C)  mercantilists view the state as having an active and vital role in their economies; liberalists do not. 
D)  mercantalists would advocate for free trade over protectionism. 
A)  mercantilists do not see wealth and economic growth as ends in themselves. 
B)  liberalists treat all specializations as equal in value; mercantilists do not. 
C)  mercantilists view the state as having an active and vital role in their economies; liberalists do not. 
D)  mercantalists would advocate for free trade over protectionism.

Question 13

Even if outsourcing decreases the wage levels of some states, liberal economic theory and empirical evidence show that

Accepted Answer

A)  the decreasing wage level is offset by an increase in purchasing power. 
B)  low wage levels tend to result in high levels of unemployment. 
C)  inflation tends to occur in globalized states. 
D)  in the long run, there is no incentive for companies to hire domestic labor. 
A)  the decreasing wage level is offset by an increase in purchasing power. 
B)  low wage levels tend to result in high levels of unemployment. 
C)  inflation tends to occur in globalized states. 
D)  in the long run, there is no incentive for companies to hire domestic labor.

Question 14

A good that everyone benefits from and from which no one can be excluded is a(n) _____.

Accepted Answer

A)  exported good 
B)  free rider 
C)  collective, or public good 
D)  commercial good 
A)  exported good 
B)  free rider 
C)  collective, or public good 
D)  commercial good

Question 15

The production of goods is usually dispersed throughout several different countries.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following best describes comparative advantage?

Accepted Answer

A)  If a state can produce the highest volume of wool in the world, that state should produce wool regardless of opportunity cost. 
B)  If a state can produce equal amounts of wine and wool, that state should produce whichever good is more expensive and desirable in the global economy. 
C)  If a state can produce wine at a lower opportunity cost than wool, that state should produce wine even if it could produce more wool than any other state in the world. 
D)  States should avoid producing wine, as wool is a more valuable resource to the economy. 
A)  If a state can produce the highest volume of wool in the world, that state should produce wool regardless of opportunity cost. 
B)  If a state can produce equal amounts of wine and wool, that state should produce whichever good is more expensive and desirable in the global economy. 
C)  If a state can produce wine at a lower opportunity cost than wool, that state should produce wine even if it could produce more wool than any other state in the world. 
D)  States should avoid producing wine, as wool is a more valuable resource to the economy.

Question 17

Modern scholars believe trade to be a bilateral interaction between countries.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following statements is NOT true regarding the globalization of labor?

Accepted Answer

A)  The use of child or slave labor can be used to gain an unfair advantage over companies that pay a fair wage. 
B)  Mobility of businesses and labor is an integral component of the international economy. 
C)  Corporations will always benefit by moving to a country where labor is less expensive. 
D)  Studies show that multinational corporations need for skilled labor can encourage countries to increase spending on education and health care. 
A)  The use of child or slave labor can be used to gain an unfair advantage over companies that pay a fair wage. 
B)  Mobility of businesses and labor is an integral component of the international economy. 
C)  Corporations will always benefit by moving to a country where labor is less expensive. 
D)  Studies show that multinational corporations need for skilled labor can encourage countries to increase spending on education and health care.

Question 19

The globalization and outsourcing of labor is most problematic for which sector of laborers?

Accepted Answer

A)  Professionals 
B)  Highly skilled 
C)  Low skilled 
D)  Supervisory 
A)  Professionals 
B)  Highly skilled 
C)  Low skilled 
D)  Supervisory

Question 20

Treaties that integrate the economies of members through the reduction of trade barriers are known as _____.

Accepted Answer

A)  World Trade Organizations (WTOs) 
B)  plurilateral agreements 
C)  regional trade agreements (RTAs) 
D)  tariff exchanges 
A)  World Trade Organizations (WTOs) 
B)  plurilateral agreements 
C)  regional trade agreements (RTAs) 
D)  tariff exchanges

Which of the following is NOT an example of a non-tariff barrier?

Which best defines a quota?

The United States ended its steel tariffs in response to a WTO ruling because it feared retaliatory tariffs from the EU.

The GATT principle that called for mutual lowering of trade barriers between trading partners was known as _____ .

How might the growth of FDI produce a level of social homogeneity?

The mercantilist school of thought posits that states can maximize their wealth and welfare by

The primary goal of the GATT was to open or liberalize world trade using the principles of reciprocity, nondiscrimination, and transparency.

How might the Prisoner's Dilemma from Chapter 9 apply to free trade and protectionism?

In The Wealth of Nations, Adam Smith argues for the idea of a nation specializing in goods in which it has a comparative advantage.

Mercantilists differ from liberalists in all of the following ways except,

Even if outsourcing decreases the wage levels of some states, liberal economic theory and empirical evidence show that

A good that everyone benefits from and from which no one can be excluded is a(n) _____.

The production of goods is usually dispersed throughout several different countries.

Which of the following best describes comparative advantage?

Modern scholars believe trade to be a bilateral interaction between countries.

Which of the following statements is NOT true regarding the globalization of labor?

The globalization and outsourcing of labor is most problematic for which sector of laborers?

Treaties that integrate the economies of members through the reduction of trade barriers are known as _____.

Discovering World Politics

Interpreting World Politics Through the Lens of Theory

Theories of International Decision Making

Great Power Relations and Rivalries

World Politics and the Global South

Nonstate Actors and the Quest for Global Community

The Threat of Armed Conflict to the World

The Pursuit of Power Through Arms and Alliances

The Quest for Peace Through International Law and Collective Security

The Globalization of International Finance

The Demographic and Cultural Dimensions of Globalization

The Promotion of Human Development and Human Rights

Global Responsibility for the Preservation of the Environment

Looking Ahead at Global Trends and Transformations

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Exam 11: International Trade in the Global Marketplace

Which of the following is NOT an example of a non-tariff barrier?

Which best defines a quota?

The United States ended its steel tariffs in response to a WTO ruling because it feared retaliatory tariffs from the EU.

The GATT principle that called for mutual lowering of trade barriers between trading partners was known as _____ .

How might the growth of FDI produce a level of social homogeneity?

The mercantilist school of thought posits that states can maximize their wealth and welfare by

The primary goal of the GATT was to open or liberalize world trade using the principles of reciprocity, nondiscrimination, and transparency.

How might the Prisoner's Dilemma from Chapter 9 apply to free trade and protectionism?

In The Wealth of Nations, Adam Smith argues for the idea of a nation specializing in goods in which it has a comparative advantage.

Mercantilists differ from liberalists in all of the following ways except,

Even if outsourcing decreases the wage levels of some states, liberal economic theory and empirical evidence show that

A good that everyone benefits from and from which no one can be excluded is a(n) _____.

The production of goods is usually dispersed throughout several different countries.

Which of the following best describes comparative advantage?

Modern scholars believe trade to be a bilateral interaction between countries.

Which of the following statements is NOT true regarding the globalization of labor?

The globalization and outsourcing of labor is most problematic for which sector of laborers?

Treaties that integrate the economies of members through the reduction of trade barriers are known as _____.

Discovering World Politics

Interpreting World Politics Through the Lens of Theory

Theories of International Decision Making

Great Power Relations and Rivalries

World Politics and the Global South

Nonstate Actors and the Quest for Global Community

The Threat of Armed Conflict to the World

The Pursuit of Power Through Arms and Alliances

The Quest for Peace Through International Law and Collective Security

The Globalization of International Finance

The Demographic and Cultural Dimensions of Globalization

The Promotion of Human Development and Human Rights

Global Responsibility for the Preservation of the Environment

Looking Ahead at Global Trends and Transformations

Filters