Question 1

China's economic reforms have focused on

Accepted Answer

A) privatizing state-owned enterprises and increasing efficiency. 
B) reducing persistent inflation and current account deficits. 
C) transitioning from socialism and toward private ownership. 
D) reducing exchange rate instability. 
A) privatizing state-owned enterprises and increasing efficiency. 
B) reducing persistent inflation and current account deficits. 
C) transitioning from socialism and toward private ownership. 
D) reducing exchange rate instability.

Question 2

China's economy was much more agricultural than Russia's,and observers believe this aided its economic transition.

Accepted Answer

A) True 
 B)False

Question 3

Some claim that China's trade surpluses are created by currency undervaluation.Is this true? Explain.

Accepted Answer

Some observers argue that China gets tra

Question 4

Environmental problems in China

Accepted Answer

A) increase pressure for decentralization of power and authority from the ruling Communist party. 
B) are not recognized by local Chinese interests, but get large amounts of attention from global activists. 
C) are improving at a rapid pace in Chinese urban areas. 
D) are generally not an issue domestically or globally. 
A) increase pressure for decentralization of power and authority from the ruling Communist party. 
B) are not recognized by local Chinese interests, but get large amounts of attention from global activists. 
C) are improving at a rapid pace in Chinese urban areas. 
D) are generally not an issue domestically or globally.

Question 5

China has a trade deficit in services,while India has a trade surplus in services.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following accurately depicts the situation of India's trade in services and what it might mean for the global economy?

Accepted Answer

A) It is not perceived as threatening to the industrialized nations so it is likely to grow without any impact. 
B) Because it is nothing new, other economies have had time to adjust. 
C) It creates only harm to other national economies. 
D) It may lead to protectionist sentiment and policies in other nations as comparative advantages shift. 
A) It is not perceived as threatening to the industrialized nations so it is likely to grow without any impact. 
B) Because it is nothing new, other economies have had time to adjust. 
C) It creates only harm to other national economies. 
D) It may lead to protectionist sentiment and policies in other nations as comparative advantages shift.

Question 7

Trade in services such as information technology

Accepted Answer

A) is like other trade; it creates winners and losers, but the gains for national economies likely outweigh the costs. 
B) creates gains for India's economy, but national welfare losses for the countries that import these services. 
C) make it highly likely that information technology jobs will ultimately disappear in the industrialized countries. 
D) is not perceived as threatening by industrialized countries so is unlikely to lead to any protectionist sentiment or pressures in the way the manufacturing does. 
A) is like other trade; it creates winners and losers, but the gains for national economies likely outweigh the costs. 
B) creates gains for India's economy, but national welfare losses for the countries that import these services. 
C) make it highly likely that information technology jobs will ultimately disappear in the industrialized countries. 
D) is not perceived as threatening by industrialized countries so is unlikely to lead to any protectionist sentiment or pressures in the way the manufacturing does.

Question 8

Russia chose a slow approach to creating a private economy and China chose a fast approach.

Accepted Answer

A) True 
 B)False

Question 9

For China

Accepted Answer

A) there was a long period of success with the economic results of communism so it was hard to change policies. 
B) reform of its economic system was rapid, with a quick dismantling of most of the controls exercised by the state and party over the economic system, but not the political system. 
C) economic reforms were intended to create more wealth to distribute, not do undo the communist party. 
D) there are no longer state owned enterprises. 
A) there was a long period of success with the economic results of communism so it was hard to change policies. 
B) reform of its economic system was rapid, with a quick dismantling of most of the controls exercised by the state and party over the economic system, but not the political system. 
C) economic reforms were intended to create more wealth to distribute, not do undo the communist party. 
D) there are no longer state owned enterprises.

Question 10

Why have China and India received so much international attention and investment?

Accepted Answer

The potential future market si

Question 11

The Asian Infrastructure Investment Bank (AIIB)

Accepted Answer

A) has been very effective in reaching its goals. 
B) lends only to Chinese businesses. 
C) is as large as the IMF. 
D) provides financing to developing countries. 
A) has been very effective in reaching its goals. 
B) lends only to Chinese businesses. 
C) is as large as the IMF. 
D) provides financing to developing countries.

Question 12

India's economic reforms have focused on

Accepted Answer

A) privatizing state-owned enterprises and increasing efficiency. 
B) reducing persistent inflation and current account deficits. 
C) transitioning from socialism and toward private ownership. 
D) reducing exchange rate instability. 
A) privatizing state-owned enterprises and increasing efficiency. 
B) reducing persistent inflation and current account deficits. 
C) transitioning from socialism and toward private ownership. 
D) reducing exchange rate instability.

Question 13

China is the only country that runs large trade surpluses.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is NOT a true statement?

Accepted Answer

A) It is unclear whether any of the decline in U.S. manufacturing employment can be attributed to Chinese growth. 
B) China's growth has been beneficial to many countries. 
C) China does not import many goods. 
D) China had large trade surpluses. 
A) It is unclear whether any of the decline in U.S. manufacturing employment can be attributed to Chinese growth. 
B) China's growth has been beneficial to many countries. 
C) China does not import many goods. 
D) China had large trade surpluses.

Question 15

Openness and change in the economic models of India and China have meant for the world economy all of the following EXCEPT

Accepted Answer

A) hundreds of millions of people have escaped poverty. 
B) many manufactured goods and services have become cheaper. 
C) forced some firms to downsize, offshore or otherwise change business practices. 
D) increased the market power of firms in industrialized countries as they gained most from this evolving trade. 
A) hundreds of millions of people have escaped poverty. 
B) many manufactured goods and services have become cheaper. 
C) forced some firms to downsize, offshore or otherwise change business practices. 
D) increased the market power of firms in industrialized countries as they gained most from this evolving trade.

Question 16

Direct foreign investment has been most critical for China's domestic consumer market.

Accepted Answer

A) True 
 B)False

Question 17

Agriculture in India is protected because

Accepted Answer

A) it is not an important source of employment. 
B) it is an infant industry. 
C) it is important for national security. 
D) it is relatively inefficient. 
A) it is not an important source of employment. 
B) it is an infant industry. 
C) it is important for national security. 
D) it is relatively inefficient.

Question 18

Which of the following is the best explanation of exports and imports in China and India?

Accepted Answer

A) Exports are heavily subsidized through government policy. 
B) Many barriers to imports exist. 
C) Exports and imports are tied together, with exports depending on imported inputs and technology. 
D) Imports are not important to either nation's economy. 
A) Exports are heavily subsidized through government policy. 
B) Many barriers to imports exist. 
C) Exports and imports are tied together, with exports depending on imported inputs and technology. 
D) Imports are not important to either nation's economy.

China's economic reforms have focused on

China's economy was much more agricultural than Russia's,and observers believe this aided its economic transition.

Some claim that China's trade surpluses are created by currency undervaluation.Is this true? Explain.

Environmental problems in China

China has a trade deficit in services,while India has a trade surplus in services.

Which of the following accurately depicts the situation of India's trade in services and what it might mean for the global economy?

Trade in services such as information technology

Russia chose a slow approach to creating a private economy and China chose a fast approach.

For China

Why have China and India received so much international attention and investment?

The Asian Infrastructure Investment Bank (AIIB)

India's economic reforms have focused on

China is the only country that runs large trade surpluses.

Which of the following is NOT a true statement?

Openness and change in the economic models of India and China have meant for the world economy all of the following EXCEPT

Direct foreign investment has been most critical for China's domestic consumer market.

Agriculture in India is protected because

Which of the following is the best explanation of exports and imports in China and India?

The United States in a Global Economy

International Economic Institutions Since World War II

Comparative Advantage and the Gains From Trade

Comparative Advantage and Factor Endowments

Beyond Comparative Advantage

The Theory of Tariffs and Quotas

Commercial Policy

International Trade and Labor and Environmental Standards

Trade and the Balance of Payments

Exchange Rates and Exchange Rate Systems

An Introduction to Open Economy Macroeconomics

International Financial Crises

The United States in the World Economy

The European Union: Many Markets Into One

Trade and Policy Reform in Latin America

Export-Oriented Growth in East Asia

Filters

Exam 17: China and India in the World Economy

China's economic reforms have focused on

China's economy was much more agricultural than Russia's,and observers believe this aided its economic transition.

Some claim that China's trade surpluses are created by currency undervaluation.Is this true? Explain.

Environmental problems in China

China has a trade deficit in services,while India has a trade surplus in services.

Which of the following accurately depicts the situation of India's trade in services and what it might mean for the global economy?

Trade in services such as information technology

Russia chose a slow approach to creating a private economy and China chose a fast approach.

For China

Why have China and India received so much international attention and investment?

The Asian Infrastructure Investment Bank (AIIB)

India's economic reforms have focused on

China is the only country that runs large trade surpluses.

Which of the following is NOT a true statement?

Openness and change in the economic models of India and China have meant for the world economy all of the following EXCEPT

Direct foreign investment has been most critical for China's domestic consumer market.

Agriculture in India is protected because

Which of the following is the best explanation of exports and imports in China and India?

The United States in a Global Economy

International Economic Institutions Since World War II

Comparative Advantage and the Gains From Trade

Comparative Advantage and Factor Endowments

Beyond Comparative Advantage

The Theory of Tariffs and Quotas

Commercial Policy

International Trade and Labor and Environmental Standards

Trade and the Balance of Payments

Exchange Rates and Exchange Rate Systems

An Introduction to Open Economy Macroeconomics

International Financial Crises

The United States in the World Economy

The European Union: Many Markets Into One

Trade and Policy Reform in Latin America

Export-Oriented Growth in East Asia

Filters