Question 1

Which of the following is the most important variable considered for identifying opportunities in the global economy to sell low-priced products?

Accepted Answer

A)  middle-class income 
B)  location of population 
C)  demand in products 
D)  cost of products

Question 2

Devaluation means that more of the home-country's currency is now needed to buy the same amount of a foreign currency.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is used to indicate the relative wealth of a country's citizenry?

Accepted Answer

A)  Gross National Product 
B)  Gross Output 
C)  Gross Domestic Product 
D)  Gross Value Added

Question 4

Countries in emerging markets have sustained high rates of growth by taking advantage of high labor costs.

Accepted Answer

A) True 
 B)False

Question 5

Member states of the North American Free Trade Agreement (NAFTA) are allowed to make separate bilateral treaties with nonmember states.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is a trade block created between Canada, Mexico, and the United States?

Accepted Answer

A)  NAFTA 
B)  SCCM 
C)  CIS 
D)  APEC

Question 7

The nations of the G20 are among the most powerful nations of the postindustrial societies.

Accepted Answer

A) True 
 B)False

Question 8

Low-income countries are typically referred to as industrialized nations.

Accepted Answer

A) True 
 B)False

Question 9

The member states of the Commonwealth of Independent States (CIS) have signed agreements addressing issues of integration and cooperation with respect to economics, defense, and foreign policy.

Accepted Answer

A) True 
 B)False

Question 10

There are no pure market or command allocation systems today.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following can be perceived from measuring actual individual consumption across global markets?

Accepted Answer

A)  Developed countries are likely to benefit more from full integration than developing countries. 
B)  Purchasing power differences do not account for differences in demand of products and services. 
C)  The living standards of high-income countries differ from low-income countries. 
D)  A vast majority of the world's income is concentrated in the lower-middle or upper-middle income countries.

Question 12

A common market goes beyond the removal of internal barriers to trade and the establishment of common external barriers to the important next stage of eliminating the barriers to the flow of factors (labor and capital) within the market.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following eliminates trade barriers to allow the harmonization of economic, social, and regulatory policies?

Accepted Answer

A)  a customs union 
B)  a common market 
C)  a free trade area 
D)  an economic union

Question 14

What are exchange rates? How do they affect the global economy?

Accepted Answer

The answer of What are exchange rates? How do they...

Question 15

Purchasing power parity measures an economy's output in terms of demand and supply.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following portrays all the economic transactions of a country with the rest of the world?

Accepted Answer

A)  balance of payments 
B)  International Comparison Program 
C)  purchasing power parity 
D)  Gross National Product per capita

Question 17

Agricultural output and services, in particular, are often priced higher in relation to industrial output in developing countries than in industrial countries.

Accepted Answer

A) True 
 B)False

Question 18

The Euro is a common currency adopted by the members of the European Union.

Accepted Answer

A) True 
 B)False

Question 19

The ASEAN Free Trade Area, or AFTA, was created in 1992 with the aim of promoting the region's competitive advantage as a single production area with the elimination of tariff and nontariff barriers among the member countries.

Accepted Answer

A) True 
 B)False

Question 20

A market can be defined as a group of people willing and able to buy a particular product or service.

Accepted Answer

A) True 
 B)False

Exam 2: The Global Economic Environment

Which of the following is the most important variable considered for identifying opportunities in the global economy to sell low-priced products?

Devaluation means that more of the home-country's currency is now needed to buy the same amount of a foreign currency.

Which of the following is used to indicate the relative wealth of a country's citizenry?

Countries in emerging markets have sustained high rates of growth by taking advantage of high labor costs.

Member states of the North American Free Trade Agreement (NAFTA) are allowed to make separate bilateral treaties with nonmember states.

Which of the following is a trade block created between Canada, Mexico, and the United States?

The nations of the G20 are among the most powerful nations of the postindustrial societies.

Low-income countries are typically referred to as industrialized nations.

The member states of the Commonwealth of Independent States (CIS) have signed agreements addressing issues of integration and cooperation with respect to economics, defense, and foreign policy.

There are no pure market or command allocation systems today.

Which of the following can be perceived from measuring actual individual consumption across global markets?

A common market goes beyond the removal of internal barriers to trade and the establishment of common external barriers to the important next stage of eliminating the barriers to the flow of factors (labor and capital) within the market.

Which of the following eliminates trade barriers to allow the harmonization of economic, social, and regulatory policies?

What are exchange rates? How do they affect the global economy?

Purchasing power parity measures an economy's output in terms of demand and supply.

Which of the following portrays all the economic transactions of a country with the rest of the world?

Agricultural output and services, in particular, are often priced higher in relation to industrial output in developing countries than in industrial countries.

The Euro is a common currency adopted by the members of the European Union.

The ASEAN Free Trade Area, or AFTA, was created in 1992 with the aim of promoting the region's competitive advantage as a single production area with the elimination of tariff and nontariff barriers among the member countries.

A market can be defined as a group of people willing and able to buy a particular product or service.