Question 1

Which of the following is an example of foreign direct investment?

Accepted Answer

A) The Ford Corporation builds an automobile factory in Argentina. 
B) Citicorp makes a loan to the queen of England. 
C) A Nigerian shipowner obtains insurance from Lloyd's of London. 
D) Bank of America buys a few shares of stock in Telefónica,the Spanish telephone company. 
E) The Grameen Bank provides microloans to small weaving cooperatives in Bangladesh. 
A) The Ford Corporation builds an automobile factory in Argentina. 
B) Citicorp makes a loan to the queen of England. 
C) A Nigerian shipowner obtains insurance from Lloyd's of London. 
D) Bank of America buys a few shares of stock in Telefónica,the Spanish telephone company. 
E) The Grameen Bank provides microloans to small weaving cooperatives in Bangladesh.

Question 2

Why are the 1980s known in Latin America as the "lost decade"?

Accepted Answer

A) Latin America and other developing regions lost faith in free-trade principles and increased protectionism. 
B) Income and investment in Latin America declined dramatically. 
C) Taxpayers in Europe lost millions of dollars bailing out banks. 
D) Banks in the United States and Europe lost millions of dollars because of bad loans to developing countries. 
E) Developing countries missed their chance to adopt liberal trade policies. 
A) Latin America and other developing regions lost faith in free-trade principles and increased protectionism. 
B) Income and investment in Latin America declined dramatically. 
C) Taxpayers in Europe lost millions of dollars bailing out banks. 
D) Banks in the United States and Europe lost millions of dollars because of bad loans to developing countries. 
E) Developing countries missed their chance to adopt liberal trade policies.

Question 3

How did trouble in the U.S.mortgage industry in 2008 lead to a sovereign debt crisis in Europe a few years later? What lessons can we draw from this about globalization and international finance?

Accepted Answer

The answer of How did trouble in the U.S.mortgage industry...

Question 4

The financial crises of the late 2000s and early 2010s primarily affected what type of countries?

Accepted Answer

A) Autocratic. 
B) Underdeveloped. 
C) African. 
D) Autarkic. 
E) Developed. 
A) Autocratic. 
B) Underdeveloped. 
C) African. 
D) Autarkic. 
E) Developed.

Question 5

How does Heckscher-Ohlin explain why banks,corporations,and individuals invest abroad?

Accepted Answer

The answer of How does Heckscher-Ohlin explain why banks,corporations,and individuals...

Question 6

Explain how the International Monetary Fund contributes to a stable international financial system.

Accepted Answer

The International Monetary Fund (IMF) co

Question 7

What is often the effect of austerity measures in a country?

Accepted Answer

A) An immediate increase in imports by the population. 
B) A recession or depression. 
C) A surge in support for the government. 
D) An increase in overall spending by the population. 
E) An increase in international investment. 
A) An immediate increase in imports by the population. 
B) A recession or depression. 
C) A surge in support for the government. 
D) An increase in overall spending by the population. 
E) An increase in international investment.

Question 8

As an individual person,you are most likely to engage in international finance through:

Accepted Answer

A) portfolio investments. 
B) direct investments. 
C) multilateral lending certificates. 
D) sovereign lending. 
E) concessional finance. 
A) portfolio investments. 
B) direct investments. 
C) multilateral lending certificates. 
D) sovereign lending. 
E) concessional finance.

Question 9

Why is there no effective international institution that helps regulate foreign direct investment (FDI)?

Accepted Answer

A) An organization is unnecessary,because the International Monetary Fund and World Trade Organization can fill the gap and help regulate FDI. 
B) There are few accepted global concerns with regard to FDI,and there is no strong demand for cooperation in dealing with MNCs. 
C) An organization is unnecessary,because countries have already agreed to a standard code of conduct regarding FDI. 
D) FDI is a recent phenomenon,and there has not been time to develop a relevant international organization. 
E) Multinational corporations have blocked efforts to create a viable international organization. 
A) An organization is unnecessary,because the International Monetary Fund and World Trade Organization can fill the gap and help regulate FDI. 
B) There are few accepted global concerns with regard to FDI,and there is no strong demand for cooperation in dealing with MNCs. 
C) An organization is unnecessary,because countries have already agreed to a standard code of conduct regarding FDI. 
D) FDI is a recent phenomenon,and there has not been time to develop a relevant international organization. 
E) Multinational corporations have blocked efforts to create a viable international organization.

Question 10

Which of the following is an example of sovereign lending?

Accepted Answer

A) The Mexican oil company ceding control of the oil-rich Tehuantepec Basin in exchange for a loan from British Petroleum. 
B) The emperor of Japan lending money to the poor. 
C) The British Parliament lending money to the British queen. 
D) The CEO of Citicorp borrowing money from Citicorp. 
E) Citicorp lending money to the Brazilian government. 
A) The Mexican oil company ceding control of the oil-rich Tehuantepec Basin in exchange for a loan from British Petroleum. 
B) The emperor of Japan lending money to the poor. 
C) The British Parliament lending money to the British queen. 
D) The CEO of Citicorp borrowing money from Citicorp. 
E) Citicorp lending money to the Brazilian government.

Question 11

Which of the following is an example of the clash of interests between borrowers and lenders?

Accepted Answer

A) The Chilean government demanded that the Anaconda Copper Company share more of its profits with the government,which its shareholders resisted. 
B) Mexico borrowed money from the United States during the 1994 Peso Crisis and then paid it back. 
C) Because international companies show little interest in the country,Ghana encourages investment in its textile industries through its Ghana Investment Promotion Centre. 
D) Ford built factories in Brazil in the 1950s and 1960s,contributing to the "Brazilian Miracle" of growth in the late 1960s. 
E) Since Botswana had little infrastructure when it became independent,the country paid foreign companies to build highways and railroads. 
A) The Chilean government demanded that the Anaconda Copper Company share more of its profits with the government,which its shareholders resisted. 
B) Mexico borrowed money from the United States during the 1994 Peso Crisis and then paid it back. 
C) Because international companies show little interest in the country,Ghana encourages investment in its textile industries through its Ghana Investment Promotion Centre. 
D) Ford built factories in Brazil in the 1950s and 1960s,contributing to the "Brazilian Miracle" of growth in the late 1960s. 
E) Since Botswana had little infrastructure when it became independent,the country paid foreign companies to build highways and railroads.

Question 12

How do international financial institutions contribute to global cooperation between investors and borrowers?

Accepted Answer

The answer of How do international financial institutions contribute to...

Question 13

Why is the International Monetary Fund a controversial international financial institution?

Accepted Answer

The answer of Why is the International Monetary Fund a...

Question 14

Which of the following has been referred to as being as much a form of aid as of finance?

Accepted Answer

A) Sovereign lending. 
B) Concessional finance. 
C) Multinational corporation activity. 
D) Foreign direct investment. 
E) Portfolio investment. 
A) Sovereign lending. 
B) Concessional finance. 
C) Multinational corporation activity. 
D) Foreign direct investment. 
E) Portfolio investment.

Question 15

How do international finance and international immigration behave in similar ways? How do they differ?

Accepted Answer

The answer of How do international finance and international immigration...

Question 16

Which of the following is an example of the leverage a host country has with regard to multinational corporations?

Accepted Answer

A) Union Carbide moved its factory to Sri Lanka when India increased taxes. 
B) Toyota factories in the United States import parts from Japan. 
C) The United States overthrew the Guatemalan president to safeguard United Fruit's assets. 
D) Chile nationalized international copper companies. 
E) Ford built an automobile factory in Argentina but did not update its facilities. 
A) Union Carbide moved its factory to Sri Lanka when India increased taxes. 
B) Toyota factories in the United States import parts from Japan. 
C) The United States overthrew the Guatemalan president to safeguard United Fruit's assets. 
D) Chile nationalized international copper companies. 
E) Ford built an automobile factory in Argentina but did not update its facilities.

Question 17

How does the Heckscher-Ohlin approach explain why there is international immigration?

Accepted Answer

A) Countries who recognize the logic of comparative advantage reduce barriers to international migration. 
B) Protectionism,which benefits the abundant factor,forces the scarce factor to leave a country in search of greater profits. 
C) Differences between industry sectors determine whether labor would remain in a country or immigrate to another country. 
D) Differences in factor endowment lead to the export of goods or capital associated with a country's scarce factor. 
E) Differences in factor endowment lead to the export of goods or capital associated with a country's abundant factor. 
A) Countries who recognize the logic of comparative advantage reduce barriers to international migration. 
B) Protectionism,which benefits the abundant factor,forces the scarce factor to leave a country in search of greater profits. 
C) Differences between industry sectors determine whether labor would remain in a country or immigrate to another country. 
D) Differences in factor endowment lead to the export of goods or capital associated with a country's scarce factor. 
E) Differences in factor endowment lead to the export of goods or capital associated with a country's abundant factor.

Question 18

Which organization was set up in the 1930s and is composed of the world's principal central banks?

Accepted Answer

A) United Nations. 
B) World Bank. 
C) World Trade Organization. 
D) International Monetary Fund. 
E) Bank of International Settlements. 
A) United Nations. 
B) World Bank. 
C) World Trade Organization. 
D) International Monetary Fund. 
E) Bank of International Settlements.

Question 19

Which of the following is NOT a reason that international finance is considered beneficial?

Accepted Answer

A) Borrowers of money can get reasonable loans with which they can invest and develop. 
B) Investors in capital-rich countries can get higher returns on their money. 
C) Capital-scarce countries have access to investment money from wealthier countries. 
D) Capital-scarce countries can use these loans to decrease their international debts. 
E) International finance allows money to flow to the areas where it can have the most impact. 
A) Borrowers of money can get reasonable loans with which they can invest and develop. 
B) Investors in capital-rich countries can get higher returns on their money. 
C) Capital-scarce countries have access to investment money from wealthier countries. 
D) Capital-scarce countries can use these loans to decrease their international debts. 
E) International finance allows money to flow to the areas where it can have the most impact.

Question 20

The World Bank typically provides additional capital to:

Accepted Answer

A) developed countries at the market rate. 
B) developed countries at below the market rate. 
C) lesser developed countries at the market rate. 
D) lesser developed countries at below the market rate. 
E) countries that are facing monetary problems. 
A) developed countries at the market rate. 
B) developed countries at below the market rate. 
C) lesser developed countries at the market rate. 
D) lesser developed countries at below the market rate. 
E) countries that are facing monetary problems.

Which of the following is an example of foreign direct investment?

Why are the 1980s known in Latin America as the "lost decade"?

How did trouble in the U.S.mortgage industry in 2008 lead to a sovereign debt crisis in Europe a few years later? What lessons can we draw from this about globalization and international finance?

The financial crises of the late 2000s and early 2010s primarily affected what type of countries?

How does Heckscher-Ohlin explain why banks,corporations,and individuals invest abroad?

Explain how the International Monetary Fund contributes to a stable international financial system.

What is often the effect of austerity measures in a country?

As an individual person,you are most likely to engage in international finance through:

Why is there no effective international institution that helps regulate foreign direct investment (FDI)?

Which of the following is an example of sovereign lending?

Which of the following is an example of the clash of interests between borrowers and lenders?

How do international financial institutions contribute to global cooperation between investors and borrowers?

Why is the International Monetary Fund a controversial international financial institution?

Which of the following has been referred to as being as much a form of aid as of finance?

How do international finance and international immigration behave in similar ways? How do they differ?

Which of the following is an example of the leverage a host country has with regard to multinational corporations?

How does the Heckscher-Ohlin approach explain why there is international immigration?

Which organization was set up in the 1930s and is composed of the world's principal central banks?

Which of the following is NOT a reason that international finance is considered beneficial?

The World Bank typically provides additional capital to:

Introduction

What Shaped Our World

Understanding Interests, interactions, and Institutions

Why Are There Wars

Domestic Politics and War

International Institutions and War

Violence by Nonstate Actors: Civil War and Terrorism

International Trade

International Monetary Relations

Development: Causes of the Wealth and Poverty of Nations

International Law and Norms

Human Rights

The Global Environment

The Future of International Politics

Foundations, war, and Peace

International Political Economy, transnational Politics, and Looking Ahead

Filters

Exam 9: International Financial Relations

Which of the following is an example of foreign direct investment?

Why are the 1980s known in Latin America as the "lost decade"?

How did trouble in the U.S.mortgage industry in 2008 lead to a sovereign debt crisis in Europe a few years later? What lessons can we draw from this about globalization and international finance?

The financial crises of the late 2000s and early 2010s primarily affected what type of countries?

How does Heckscher-Ohlin explain why banks,corporations,and individuals invest abroad?

Explain how the International Monetary Fund contributes to a stable international financial system.

What is often the effect of austerity measures in a country?

As an individual person,you are most likely to engage in international finance through:

Why is there no effective international institution that helps regulate foreign direct investment (FDI)?

Which of the following is an example of sovereign lending?

Which of the following is an example of the clash of interests between borrowers and lenders?

How do international financial institutions contribute to global cooperation between investors and borrowers?

Why is the International Monetary Fund a controversial international financial institution?

Which of the following has been referred to as being as much a form of aid as of finance?

How do international finance and international immigration behave in similar ways? How do they differ?

Which of the following is an example of the leverage a host country has with regard to multinational corporations?

How does the Heckscher-Ohlin approach explain why there is international immigration?

Which organization was set up in the 1930s and is composed of the world's principal central banks?

Which of the following is NOT a reason that international finance is considered beneficial?

The World Bank typically provides additional capital to:

Introduction

What Shaped Our World

Understanding Interests, interactions, and Institutions

Why Are There Wars

Domestic Politics and War

International Institutions and War

Violence by Nonstate Actors: Civil War and Terrorism

International Trade

International Monetary Relations

Development: Causes of the Wealth and Poverty of Nations

International Law and Norms

Human Rights

The Global Environment

The Future of International Politics

Foundations, war, and Peace

International Political Economy, transnational Politics, and Looking Ahead

Filters