Exam 1: The International Economy and Globalization

Open economies have more:

Which of the following is a fallacy of international trade?

International trade forces domestic firms to become more competitive in terms of:

Does exposure to competition with the world leader in a particular industry improve a firm's productivity?

In an open trading system,a country will import those commodities that it produces at relatively low cost while exporting commodities that can be produced at relatively high cost.

For a nation to maximize its productivity in a global economy:

Although free trade provides benefits for consumers,it is often argued that import protection should be provided to domestic producers of strategic goods and materials vital to the nation's security.

During the last century,the relative importance of international trade for the U.S.has:

The first wave of globalization was brought to an end by

A firm's ____,relative to that of other firms,is generally regarded as the most important determinant of competitiveness.

Small countries tend to have higher measures of openness than larger countries because:

What is the most important factor which contributes to competitiveness?

International trade is based on the idea that:

If a nation has an open economy,it means that the nation:

A primary reason why nations conduct international trade is because:

Economists have generally found that economic growth rates have a close relation to:

What are the essential arguments in favor of free trade?

Foreign ownership of U.S.financial assets

The benefits of international trade accrue in the forms of lower domestic prices,development of more efficient methods and new products,and a greater range of consumption choices.

Opening the economy to international trade tends to lessen inflationary pressures at home.