Exam 32: Globalization

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

Which of the following would be part of the Thai demand for U.S.dollars?

What has been one the results of globalization experienced by Eastern European nations after the fall of their socialist regimes?

To counteract the depreciation of national currency against the U.S.dollar, the central bank of a country can intervene in the foreign exchange market.Which of the following imposes a restriction on this ability of the central banks to maintain the fixed exchange rate?

Barriers to immigration are much higher in most countries today, than it was in the twentieth century.

Globalization is an economic issue and does not involve political and social dimensions.

After a speculative attack has been successful, and the country is forced to devalue its currency, it is common to see many local business firms driven to bankruptcy.This most commonly occurs because _____.

What has happened to countries that did not participate in the globalization of the world economy?

Which of the following is one of the most important causes for the recent increase in income inequality in China?

Refer to Figure 18.1.What would happen to the value of the U.S.dollar if there were a perception that the value of Thai assets would decrease?

Supporters of globalization argue that increased globalization will lead to:

Which of the following is true of the crises experienced in the 1990s?

Identify the correct statement.

According to evidence from around the world, the real losers in globalization of the world economy are:

As the Asian financial crisis of 1997 began to spread, it became obvious to investors that Korean investments would provide lower returns than expected.What was the impact of such a realization on the foreign exchange market?

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?

Poor and developing countries are ranked on the top of the list of globalized countries by the KOF Swiss Economic Institute.

The financial crises of the 1990s pointed out that small developing countries have a vulnerability to globalization in terms of _____.

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 _____.