Question 1

The first wave of globalization was brought to an end by

Accepted Answer

A)   the Great Depression.
B)   the Second World War.
C)   the First World War.
D)   the Smoot-Hawley Act.E) All of the above
F) None of the above

Question 2

Following World War II, the U.S.

Accepted Answer

A)   became less open.
B)   focused on technological advancements in industry.
C)   negotiated increases in trade barriers.
D)   went through a period of economic isolationism.E) A) and B)
F) A) and C)

Question 3

North Carolina produces sweet potatoes in its rich soil, but does not have the climate to grow oranges well.It is correct to say that North Carolina has a _________sweet potato production relative to Florida.

Accepted Answer

A)   free trade agreement with
B)   monopoly on
C)   comparative advantage in
D)   trade imbalance withE) A) and B)
F) A) and C)

Question 4

How has international trade forced domestic firms to become more competitive?

Accepted Answer

International trade has forced...

Question 5

Today, most Schwinn bicycles are manufactured in

Accepted Answer

A)   China.
B)   Canada.
C)   Mexico.
D)   Germany.E) C) and D)
F) None of the above

Question 6

How does competition impact product quality?

Accepted Answer

International competition provides domes...

Question 7

In response to the Great Recession of 2007-2009, the Federal Reserve (Fed)  attempted to grow the U.S.economy with a policy called quantitative easing, which would pump more dollars into the economy and cause interest rates to fall.Which of the following was NOT a criticism of the policy?

Accepted Answer

A)   The policy could lead to a depreciation in the dollar's exchange value.
B)   The policy could improve American competitiveness at other nations' expense.
C)   The rest of the world's producers could see their exports begin to fall.
D)   Americans goods would become more expensive for foreign consumers.E) C) and D)
F) B) and D)

Question 8

The natural gas turbine is considered a driver of globalization because the turbine

Accepted Answer

A)   increases efficiency, moving goods from place to place.
B)   was developed in the United States.
C)   is associated with increased transportation costs.
D)   increases the labor input and decreases unemployment.E) A) and C)
F) All of the above

Question 9

The term "economic interdependence" implies that the wealth and success of one country impacts the wealth and success of another country.

Accepted Answer

A) True 
 B)False

Question 10

Open economies are subject to greater firm turnover because open economies

Accepted Answer

A)   trade less than closed economies.
B)   are more likely to be associated with tariffs than closed economies.
C)   are associated with increased competition as compared to closed economies.
D)   draw a less skilled labor force than closed economies.E) B) and D)
F) All of the above

Question 11

What are the challenges of the international trading system?

Accepted Answer

The international trading syst...

Question 12

The most profound influence driving globalization is an increased awareness of global human rights.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is a fallacy of international trade?

Accepted Answer

A)   Trade is a zero-sum activity.
B)   Exports increase employment in exporting industries.
C)   Import restrictions increase employment in import-competing industries.
D)   Tariffs and quotas reduce trade.E) A) and D)
F) All of the above

Question 14

During the 1950s, General Motors (GM)  was responsible for about 60 percent of all passenger cars produced in the United States.Some criticized GM for

Accepted Answer

A)   encouraging too much market competition.
B)   failing to use economies of scale in individual plants.
C)   acquiring monopoly power over the auto market.
D)   failing to sufficiently dominate the auto market.E) A) and B)
F) C) and D)

Question 15

All of the following have been criticisms of globalization and trade policies EXCEPT

Accepted Answer

A)   environmental concerns.
B)   disadvantages for corporations.
C)   unfair competition from countries that lack labor standards.
D)   support of countries with human rights violations like sweatshops.E) A) and D)
F) All of the above

Question 16

The phrase "When the United States sneezes, the economies of other nations catch a cold" was first used to describe the impact of the economy of the United States on the rest of the world at the end of World War II.This phrase is now

Accepted Answer

A)   more true due to the impact of growing economic interdependence.
B)   less true due to the impact of growing economic interdependence.
C)   only true when followed by impacts in the European Union.
D)   all of these are only true in the case of an economic recession.E) A) and D)
F) None of the above

Question 17

A closed economy is one in which

Accepted Answer

A)   imports exactly equal exports, so that trade is balanced.
B)   domestic firms invest in industries overseas.
C)   the home economy is isolated from foreign trade.
D)   technological innovations and improvements in the efficiency of international transport are highly valued.E) A) and B)
F) All of the above

Question 18

In the late 1990s, Schwinn Inc.closed all of its bicycle manufacturing plants in China and moved them to the United States.

Accepted Answer

A) True 
 B)False

Question 19

Open economies have

Accepted Answer

A)   less competition.
B)   less firm turnover.
C)   a more stable labor market.
D)   more firms entering the market.E) C) and D)
F) None of the above

Question 20

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

Accepted Answer

A)   their productivity is higher.
B)   they are more reliant on international trade.
C)   they are less reliant on international trade.
D)   they are more economically diverse.E) B) and C)
F) B) and D)

Exam 1: The International Economy and Globalization

In response to the Great Recession of 2007-2009, the Federal Reserve (Fed) attempted to grow the U.S.economy with a policy called quantitative easing, which would pump more dollars into the economy and cause interest rates to fall.Which of the following was NOT a criticism of the policy?

Correct AnswerverifiedShow Answer

Which of the following is a fallacy of international trade?

Correct AnswerverifiedShow Answer

How does competition impact product quality?

Correct AnswerverifiedInternational competition provides domes...View AnswerShow Answer

The phrase "When the United States sneezes, the economies of other nations catch a cold" was first used to describe the impact of the economy of the United States on the rest of the world at the end of World War II.This phrase is now

Correct AnswerverifiedShow Answer

During the 1950s, General Motors (GM) was responsible for about 60 percent of all passenger cars produced in the United States.Some criticized GM for

Correct AnswerverifiedShow Answer

All of the following have been criticisms of globalization and trade policies EXCEPT

Correct AnswerverifiedShow Answer

The first wave of globalization was brought to an end by

Correct AnswerverifiedShow Answer

The natural gas turbine is considered a driver of globalization because the turbine

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A closed economy is one in which

Correct AnswerverifiedShow Answer

How has international trade forced domestic firms to become more competitive?

Correct AnswerverifiedInternational trade has forced...View AnswerShow Answer

In the late 1990s, Schwinn Inc.closed all of its bicycle manufacturing plants in China and moved them to the United States.

Correct AnswerverifiedShow Answer

Today, most Schwinn bicycles are manufactured in

Correct AnswerverifiedShow Answer

Open economies have

Correct AnswerverifiedShow Answer

The most profound influence driving globalization is an increased awareness of global human rights.

Correct AnswerverifiedShow Answer

Open economies are subject to greater firm turnover because open economies

Correct AnswerverifiedShow Answer

Following World War II, the U.S.

Correct AnswerverifiedShow Answer

The term "economic interdependence" implies that the wealth and success of one country impacts the wealth and success of another country.

Correct AnswerverifiedShow Answer

North Carolina produces sweet potatoes in its rich soil, but does not have the climate to grow oranges well.It is correct to say that North Carolina has a _________sweet potato production relative to Florida.

Correct AnswerverifiedShow Answer

What are the challenges of the international trading system?

Correct AnswerverifiedThe international trading syst...View AnswerShow Answer

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International competition provides domes...
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International trade has forced...
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The international trading syst...
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