Question 1

Globalization benefits all the participating nations equally.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is entrusted with the responsibility of settling trade disputes between countries?

Accepted Answer

A)  The European Union 
B)  The International Monetary Fund 
C)  The World Trade Organization 
D)  The International Labor Organization 
E)  The United Nations Organization 
A)  The European Union 
B)  The International Monetary Fund 
C)  The World Trade Organization 
D)  The International Labor Organization 
E)  The United Nations Organization

Question 3

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?

Accepted Answer

A)  Better regulation of financial institutions to ensure prudent risk taking 
B)  Lowering the fiscal budget 
C)  Reducing international investment 
D)  Paying off debts from the Federal Reserve 
E)  Mitigating lack of government transparency 
A)  Better regulation of financial institutions to ensure prudent risk taking 
B)  Lowering the fiscal budget 
C)  Reducing international investment 
D)  Paying off debts from the Federal Reserve 
E)  Mitigating lack of government transparency

Question 4

Which of the following measures of globalization was not affected during the aftermath of the terrorist attacks in the United States on September 11, 2001?

Accepted Answer

A)  World trade 
B)  Global foreign direct investment 
C)  International travel and tourism 
D)  International telephone calls 
E)  Political engagement 
A)  World trade 
B)  Global foreign direct investment 
C)  International travel and tourism 
D)  International telephone calls 
E)  Political engagement

Question 5

Larger countries tend to be more globalized, because their large internal markets allow them to export a wide range of products.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is a direct consequence of the development of faster and cheaper computers?

Accepted Answer

A)  The development of double-entry bookkeeping 
B)  The enhanced ability of managers of business operations to deal with complex transactions in far-flung locations 
C)  The creation of money 
D)  The decrease in workers' productivity, because more computers need fewer people to operate them 
E)  A decline in the rate of inflation 
A)  The development of double-entry bookkeeping 
B)  The enhanced ability of managers of business operations to deal with complex transactions in far-flung locations 
C)  The creation of money 
D)  The decrease in workers' productivity, because more computers need fewer people to operate them 
E)  A decline in the rate of inflation

Question 7

Which of the following arguments is not used by promoters of globalization as one of the reasons why free trade and international investment result in higher standards of living?

Accepted Answer

A)  Free trade helps developing countries. 
B)  International organizations represent governments and people, not the interests of corporations. 
C)  There is no convincing evidence that globalization occurs at the expense of the environment. 
D)  There is no convincing evidence that globalization occurs by encouraging harmful labor practices. 
E)  Globalization brings better cultural practices to countries that have obsolete cultural traditions. 
A)  Free trade helps developing countries. 
B)  International organizations represent governments and people, not the interests of corporations. 
C)  There is no convincing evidence that globalization occurs at the expense of the environment. 
D)  There is no convincing evidence that globalization occurs by encouraging harmful labor practices. 
E)  Globalization brings better cultural practices to countries that have obsolete cultural traditions.

Question 8

Which of the following is an argument for globalization?

Accepted Answer

A)  Poor countries compete for multinational firms by allowing lax environmental standards. 
B)  Multinational firms tend to pay lower wages than local firms. 
C)  The benefits of globalization to all consumers greatly outweigh the loss of jobs to international competition. 
D)  Removal of restrictions against agricultural products would cause workers in rich countries to lose their jobs. 
E)  The increased integration of the world's economies has been associated with lax environmental and labor standards in most countries. 
A)  Poor countries compete for multinational firms by allowing lax environmental standards. 
B)  Multinational firms tend to pay lower wages than local firms. 
C)  The benefits of globalization to all consumers greatly outweigh the loss of jobs to international competition. 
D)  Removal of restrictions against agricultural products would cause workers in rich countries to lose their jobs. 
E)  The increased integration of the world's economies has been associated with lax environmental and labor standards in most countries.

Question 9

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

Accepted Answer

A)  The prospect that multinational firms have of selling to the massive Chinese market 
B)  The lack of environmental standards under the communist government of China 
C)  The prospect of using forced child labor for cheaper production in this country 
D)  The relative strength of the Chinese currency, which makes any investment there worthwhile 
E)  The advanced southeast Asian highway system, which makes transportation extremely efficient 
A)  The prospect that multinational firms have of selling to the massive Chinese market 
B)  The lack of environmental standards under the communist government of China 
C)  The prospect of using forced child labor for cheaper production in this country 
D)  The relative strength of the Chinese currency, which makes any investment there worthwhile 
E)  The advanced southeast Asian highway system, which makes transportation extremely efficient

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

In its most basic form, globalization has existed ever since:

Accepted Answer

A)  the creation of the Internet, which enables people to sell their products overseas. 
B)  the end of World War II. 
C)  the creation of the International Monetary Fund (IMF), which establishes the rules for all countries to follow as they trade. 
D)  the fall of the Berlin wall which marked the end of communism and thus, the beginning of truly "global" times. 
E)  primitive societies began to engage in trade. 
A)  the creation of the Internet, which enables people to sell their products overseas. 
B)  the end of World War II. 
C)  the creation of the International Monetary Fund (IMF), which establishes the rules for all countries to follow as they trade. 
D)  the fall of the Berlin wall which marked the end of communism and thus, the beginning of truly "global" times. 
E)  primitive societies began to engage in trade.

Question 12

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?

Accepted Answer

A)  Rich people deserve higher pay. 
B)  The workers in developing countries have lower consumption levels than those in developed countries, thus they get lower wages. 
C)  Local wages in developing countries are generally lower than in industrialized countries, with or without globalization. 
D)  Workers in developing countries have higher benefits, making the overall wages about the same in both kinds of countries. 
E)  Most workers in developing countries are comparatively younger, and they get lower wages because of their lack of experience. 
A)  Rich people deserve higher pay. 
B)  The workers in developing countries have lower consumption levels than those in developed countries, thus they get lower wages. 
C)  Local wages in developing countries are generally lower than in industrialized countries, with or without globalization. 
D)  Workers in developing countries have higher benefits, making the overall wages about the same in both kinds of countries. 
E)  Most workers in developing countries are comparatively younger, and they get lower wages because of their lack of experience.

Question 13

Investors may be caught by surprise when devaluation occurs, particularly if the government does not disclose its international reserve position in a timely and informative manner.

Accepted Answer

A) True 
 B)False

Question 14

Because of the large amounts of resources devoted to understanding the nature of financial crises, researchers now feel comfortable making forecasts and do not expect to have any more surprises in the future.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following international organizations do globalization critics claim is serving the interests of large multinational corporations?

Accepted Answer

A)  NATO 
B)  The World Bank 
C)  The Fed 
D)  The United Nations 
E)  The International Labor Organization 
A)  NATO 
B)  The World Bank 
C)  The Fed 
D)  The United Nations 
E)  The International Labor Organization

Question 16

Which of the following is a measure of political globalization (one of the three categories used by the KOF Swiss Economic Institute)?

Accepted Answer

A)  Participation in U.N. peace missions 
B)  Spread of ideas 
C)  Flow of information 
D)  Limits on externalities 
E)  Progressive taxation 
A)  Participation in U.N. peace missions 
B)  Spread of ideas 
C)  Flow of information 
D)  Limits on externalities 
E)  Progressive taxation

Question 17

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
  
-Refer to Figure 18.2. Suppose investors predict that the value of Thai assets will decrease in the near future. This affects the current equilibrium exchange rate. To restore the original equilibrium, the Thai government intervenes in the foreign exchange market. How will this government action appear on the graph?

Accepted Answer

A)  As a shift in the demand curve from D₂ to D₁ 
B)  As a shift in the demand curve from D₁ to D₃ 
C)  As a shift in the supply curve from S₁ to S₃ 
D)  As a shift in the supply curve from S₁ to S₂ 
E)  As a shift in the demand curve from D₂ to D₃ 
A)  As a shift in the demand curve from D₂ to D₁ 
B)  As a shift in the demand curve from D₁ to D₃ 
C)  As a shift in the supply curve from S₁ to S₃ 
D)  As a shift in the supply curve from S₁ to S₂ 
E)  As a shift in the demand curve from D₂ to D₃

Question 18

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. The original equilibrium exchange rate is _____.

Accepted Answer

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

Question 19

The smaller the amount of short-term money invested in a country, the greater the potential for a crisis if investors lose confidence in the country.

Accepted Answer

A) True 
 B)False

Question 20

Evidence exists that countries with the most open economies tend to have more stringent environmental regulations.

Accepted Answer

A) True 
 B)False

Globalization benefits all the participating nations equally.

Which of the following is entrusted with the responsibility of settling trade disputes between countries?

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?

Which of the following measures of globalization was not affected during the aftermath of the terrorist attacks in the United States on September 11, 2001?

Larger countries tend to be more globalized, because their large internal markets allow them to export a wide range of products.

Which of the following is a direct consequence of the development of faster and cheaper computers?

Which of the following arguments is not used by promoters of globalization as one of the reasons why free trade and international investment result in higher standards of living?

Which of the following is an argument for globalization?

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

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

In its most basic form, globalization has existed ever since:

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?

Investors may be caught by surprise when devaluation occurs, particularly if the government does not disclose its international reserve position in a timely and informative manner.

Because of the large amounts of resources devoted to understanding the nature of financial crises, researchers now feel comfortable making forecasts and do not expect to have any more surprises in the future.

Which of the following international organizations do globalization critics claim is serving the interests of large multinational corporations?

Which of the following is a measure of political globalization (one of the three categories used by the KOF Swiss Economic Institute)?

The smaller the amount of short-term money invested in a country, the greater the potential for a crisis if investors lose confidence in the country.

Evidence exists that countries with the most open economies tend to have more stringent environmental regulations.

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

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Exam 18: Globalization

Globalization benefits all the participating nations equally.

Which of the following is entrusted with the responsibility of settling trade disputes between countries?

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?

Which of the following measures of globalization was not affected during the aftermath of the terrorist attacks in the United States on September 11, 2001?

Larger countries tend to be more globalized, because their large internal markets allow them to export a wide range of products.

Which of the following is a direct consequence of the development of faster and cheaper computers?

Which of the following arguments is not used by promoters of globalization as one of the reasons why free trade and international investment result in higher standards of living?

Which of the following is an argument for globalization?

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

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

In its most basic form, globalization has existed ever since:

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?

Investors may be caught by surprise when devaluation occurs, particularly if the government does not disclose its international reserve position in a timely and informative manner.

Because of the large amounts of resources devoted to understanding the nature of financial crises, researchers now feel comfortable making forecasts and do not expect to have any more surprises in the future.

Which of the following international organizations do globalization critics claim is serving the interests of large multinational corporations?

Which of the following is a measure of political globalization (one of the three categories used by the KOF Swiss Economic Institute)?

The smaller the amount of short-term money invested in a country, the greater the potential for a crisis if investors lose confidence in the country.

Evidence exists that countries with the most open economies tend to have more stringent environmental regulations.

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