Exam 32: Globalization

Refer to Figure 18.1.Assume that there is a market perception that the value of Thai assets will decrease in the near future.This affects the current equilibrium exchange rate.What can the Thai central bank do to restore the previous value of the baht?

Which of the following is a probable consequence of the presence of accounting rules that allow firms to hide the financial impact of actions that would harm investors?

Short-term international investment helps to create a greater level of liquidity, more stable exchange rates, and therefore a decreased likelihood of financial crisis.

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.

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

The World Bank tracked the performance of countries that had undergone varying degrees of globalization since the 1960s.Which of the following was a conclusion of the study?

The financial crises of the 1990s have conclusively proved that globalization causes financial crises.

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.

Generally, which of the following is the most common reason why countries that experienced a financial crisis could not maintain their fixed exchange rate?

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?

Countries that enjoy long distance flows of goods, capital, and services as well as information and perceptions that accompany market exchanges would be categorized under _____ globalization.

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?

Supporters of globalization believe that free trade and international investment result in all countries raising their living standards.

Refer to Figure 18.1.If there were a perception that the value of Thai assets would decrease, the equilibrium exchange rate would move to _____.

In this era of globalization, one of the main reasons why some countries have remained closed to the rest of the world is:

Which of the following multinational agreements allows the international movement of workers?

Which of the following increases the possibility of depreciation of the domestic currency in the foreign exchange market?

Globalization had to be put into effect to revive developed economies after the financial crises of the 1990s.

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.

Which of the following resulted in the financial crisis in 2007-08?