Question 1

An example of a foreign direct investment (FDI)would include

Accepted Answer

A)  a U.S.couple buying land for their dream retirement home in Costa Rica.
B)  a U.S.mutual fund manager buying shares of stock in a Brazilian oil company.
C)  a U.S.firm expanding its U.S.operations.
D)  a Chinese consumer buying an imported Japanese car.
E)  a wealthy Mexican buying U.S.Treasury bills. A

Question 2

Transactions costs in international financial markets are higher today than they were in the past.

Accepted Answer

A) True 
 B)False  False

Question 3

The four criteria for economic integration include trade flows,capital flows,people flows,and the similarity of prices in separate markets.

Accepted Answer

A) True 
 B)False  True

Question 4

Open economies grow slower than closed ones.

Accepted Answer

A) True 
 B)False

Question 5

What are the negative impacts of migration for the nation receiving migrants?

Accepted Answer

The answer of What are the negative impacts of migration...

Question 6

Compare and contrast globalization as it existed in the late nineteenth century with globalization at the turn of the twenty-first century (i.e. ,today).

Accepted Answer

The answer of Compare and contrast globalization as it existed...

Question 7

Financial capital flows could include

Accepted Answer

A)  real estate purchases.
B)  construction of factories.
C)  sales of a business.
D)  the purchase of the physical assets and operations of a multinational corporation by another.
E)  currency market transactions.

Question 8

Which of the following is FALSE?

Accepted Answer

A)  Capital flows today are larger mainly because economies are larger.
B)  The last two decades are the first time in history that a nation has borrowed more than 10 percent of its GDP.
C)  There are important qualitative differences between capital flows today and in the past.
D)  In 1900 most international financial transactions involved buying and selling bonds.
E)  Today most international financial transactions involve buying and selling assets denominated in foreign currencies.

Question 9

Capital and labor only very recently have been free to move across international borders.

Accepted Answer

A) True 
 B)False

Question 10

Domestic agricultural subsidies intended to support the nation's farmers would not be considered a trade barrier so would not be disputed internationally.

Accepted Answer

A) True 
 B)False

Question 11

What are the positive impacts of migration on migrants and the firms that hire them?

Accepted Answer

The answer of What are the positive impacts of migration...

Question 12

Economists

Accepted Answer

A)  describe reducing tariffs and quotas as shallow integration.
B)  describe reducing tariffs and quotas as deep integration.
C)  believe that changing domestic policies affecting trade is a relatively simple process.
D)  believe that the work of reducing trade barriers is done since most tariffs are low and most quotas eliminated.
E)  believe the original motivation for nations forming domestic policies and regulations was to create trade barriers to foreign companies.

Question 13

One of the reasons we know that international labor mobility has been higher at other times is because

Accepted Answer

A)  the percent of our population that was foreign born was higher.
B)  the percent of our population that was foreign born was lower.
C)  wages were lower.
D)  labor was important in agriculture.
E)  the population was younger.

Question 14

An important factor that increased international capital flows in the latter part of the 1800s was

Accepted Answer

A)  the creation of the International Monetary Fund.
B)  the creation of numerous regional trade agreements.
C)  the rapid rate of East Asian economic growth.
D)  technological innovations.
E)  the creation of the World Bank.

Question 15

Which of the following is TRUE?

Accepted Answer

A)  Domestic policies are never barriers to trade.
B)  Programs aimed at supporting domestic industries do not form trade barriers today.
C)  Tariffs and quotas in industrial nations are significantly higher now than they were in 1950.
D)  Tariffs and quotas are the primary trade barrier in industrialized countries.
E)  Domestic policies intended to protect consumers or the environment may become trade barriers.

Question 16

Most economists support open trade because it increase our choices as consumers,lowers costs for producers,increases competition and innovation,and leads to greater diffusion of technological change.

Accepted Answer

A) True 
 B)False

Question 17

Why are high domestic savings rates important?

Accepted Answer

The answer of Why are high domestic savings rates important?...

Question 18

Which type of integration requires adapting domestic policies to coordinate with those of trading partners?

Accepted Answer

The answer of Which type of integration requires adapting domestic...

Question 19

A relative measure of the importance of trade is

Accepted Answer

A)  the dollar value of trade.
B)  trade as a percentage of GDP.
C)  the dollar value of trade adjusted for inflation.
D)  trade as a percentage of investment.
E)  None of the above.

Question 20

Countries that have high rates of savings also have

Accepted Answer

A)  high rates of investment.
B)  low rates of investment.
C)  stock market bubbles.
D)  low rates of growth.
E)  no international trade.

Exam 1: The United States in a Global Economy

An example of a foreign direct investment (FDI) would include

Transactions costs in international financial markets are higher today than they were in the past.

The four criteria for economic integration include trade flows,capital flows,people flows,and the similarity of prices in separate markets.

Open economies grow slower than closed ones.

What are the negative impacts of migration for the nation receiving migrants?

Compare and contrast globalization as it existed in the late nineteenth century with globalization at the turn of the twenty-first century (i.e. ,today).

Financial capital flows could include

Which of the following is FALSE?

Capital and labor only very recently have been free to move across international borders.

Domestic agricultural subsidies intended to support the nation's farmers would not be considered a trade barrier so would not be disputed internationally.

What are the positive impacts of migration on migrants and the firms that hire them?

Economists

One of the reasons we know that international labor mobility has been higher at other times is because

An important factor that increased international capital flows in the latter part of the 1800s was

Which of the following is TRUE?

Most economists support open trade because it increase our choices as consumers,lowers costs for producers,increases competition and innovation,and leads to greater diffusion of technological change.

Why are high domestic savings rates important?

Which type of integration requires adapting domestic policies to coordinate with those of trading partners?

A relative measure of the importance of trade is

Countries that have high rates of savings also have