Question 1

In 2008 and 2009,the GATT became the forum though which major nations attempted to launch a coordinated policy response to the global financial crisis,which started in America.

Accepted Answer

A) True 
 B)False

Question 2

The World Trade Organization has estimated that the developed nations of the world can raise global economic welfare by $128 billion by:

Accepted Answer

A)   removing subsidies given to their agricultural producers.
B)   increasing tariff barriers to trade in agriculture.
C)   increasing outsourcing of manufacturing processes.
D)   reducing defence expenditure.

Question 3

The ______ is primarily responsible for policing the world trading system and making sure nation-states adhere to the rules laid down in trade treaties signed by member states.

Accepted Answer

A)   International Development Association
B)   World Bank
C)   International Court of justice
D)   World Trade Organization

Question 4

A number of econometric studies have found consistent evidence of a hump-shaped relationship between income levels and pollution levels.According to this,as an economy grows and income levels rise:

Accepted Answer

A)   initially the pollution levels remain low
B)   after a while the pollution levels decrease
C)   the pollution levels also rise in proportion to the economic growth
D)   there is increasing industrialization which leads to greater pollution

Question 5

Which of the following is NOT a consequence of the reduction in trade barriers and restrictions on FDI since 1950?

Accepted Answer

A)   Firms are dispersing parts of their production process to global locations to drive down production costs and increase product quality.
B)   The economies of the world's nation states are becoming more intertwined.
C)   Nations are becoming more independent of each other for important goods and services.
D)   The world has become significantly wealthier since 1950.

Question 6

"Beggar thy neighbor" retaliatory trade policies involved countries progressively lowering trade barriers against each other,which contributed to the Great Depression of the 1930s.

Accepted Answer

A) True 
 B)False

Question 7

What is the total cumulative value of foreign investments best referred to as?

Accepted Answer

A)   Accumulation of foreign shares
B)   Portfolio investments
C)   Stock of foreign direct investments
D)   Stock market investments

Question 8

The financial crisis in the U.S.in 2009 was triggered by _____.

Accepted Answer

A)   the global hike in the price of crude oil
B)   the slowdown in U.S.imports
C)   the problems in the U.S.subprime mortgage lending market
D)   the artificial fixing of currency rate by China

Question 9

Non-U.S.firms increasingly began to invest across national borders because they wanted to disperse production activities to optimal locations and to build a direct presence in major foreign markets.

Accepted Answer

A) True 
 B)False

Question 10

The General Agreement on Tariffs and Trade (GATT) was responsible for _____.

Accepted Answer

A)   protecting government owned enterprises
B)   policing the global marketplace
C)   limiting nuclear testing
D)   promoting environment friendly technology

Question 11

_____ have/has the most to gain from reductions in agricultural tariffs and subsidies that are a part of the Doha agenda.

Accepted Answer

A)   The world's developed nations
B)   The world's poorer nations
C)   European nations
D)   The United States

Question 12

The Uruguay Round,finalized in December 1993,reduced protection for patents,trademarks,and copyrights.

Accepted Answer

A) True 
 B)False

Question 13

A study published in 2011 by the OECD noted that:

Accepted Answer

A)   the real household income of the unskilled workers in the U.S.increased more in comparison to that of the skilled workers.
B)   in almost all countries real income levels declined over the 20-year period studied.
C)   falling unemployment rates brought gains to low-wage workers and fairly broad-based wage growth.
D)   the gap between the poorest and richest segments of society in some OECD countries had widened.

Question 14

The expansion of world trade implies that nations are becoming less dependent on each other for important goods and services.

Accepted Answer

A) True 
 B)False

Question 15

The globalization of markets and production and the resulting growth of world trade,foreign direct investment,and imports all imply that firms are finding their home markets protected from foreign competitors.

Accepted Answer

A) True 
 B)False

Question 16

A U.S.Investment firm,Fin-Smart,set up a customer service call center in India to take advantage of the lower labor costs.This is called _____.

Accepted Answer

A)   homogenizing markets
B)   vertical integration
C)   outsourcing
D)   horizontal integration

Question 17

Throughout the 1990s,the amount of foreign direct investment directed at both developed and developing nations increased dramatically.This trend reflects:

Accepted Answer

A)   a slowdown in global economic activity.
B)   the increasing share of the U.S.in the total FDI stock.
C)   the decline in cross-border flows of foreign direct investment.
D)   the increasing internationalization of business corporations.

Question 18

Containerization allows:

Accepted Answer

A)   reduction of the time needed to get from one location to another.
B)   simplification of transshipment from one mode of transport to another.
C)   buyers and sellers to find each other easily.
D)   enterprises to coordinate and control a globally dispersed production system.

Question 19

In the early 1960s,the United States was by far the world's dominant industrial power.However by 2009,it lost its dominant position and now,is no longer the world's largest industrial power.

Accepted Answer

A) True 
 B)False

Question 20

Innovations in transportation have had a major impact on global trade.Consider one of these innovations: containerization.Why is this innovation so significant?

Accepted Answer

Containerization has revolutionized the ...

Exam 1: Globalization

In the early 1960s,the United States was by far the world's dominant industrial power.However by 2009,it lost its dominant position and now,is no longer the world's largest industrial power.

Correct AnswerverifiedShow Answer

The ______ is primarily responsible for policing the world trading system and making sure nation-states adhere to the rules laid down in trade treaties signed by member states.

Correct AnswerverifiedShow Answer

Containerization allows:

Correct AnswerverifiedShow Answer

Which of the following is NOT a consequence of the reduction in trade barriers and restrictions on FDI since 1950?

Correct AnswerverifiedShow Answer

The financial crisis in the U.S.in 2009 was triggered by _____.

Correct AnswerverifiedShow Answer

_____ have/has the most to gain from reductions in agricultural tariffs and subsidies that are a part of the Doha agenda.

Correct AnswerverifiedShow Answer

Innovations in transportation have had a major impact on global trade.Consider one of these innovations: containerization.Why is this innovation so significant?

Correct AnswerverifiedContainerization has revolutionized the ...View AnswerShow Answer

A study published in 2011 by the OECD noted that:

Correct AnswerverifiedShow Answer

A U.S.Investment firm,Fin-Smart,set up a customer service call center in India to take advantage of the lower labor costs.This is called _____.

Correct AnswerverifiedShow Answer

Non-U.S.firms increasingly began to invest across national borders because they wanted to disperse production activities to optimal locations and to build a direct presence in major foreign markets.

Correct AnswerverifiedShow Answer

In 2008 and 2009,the GATT became the forum though which major nations attempted to launch a coordinated policy response to the global financial crisis,which started in America.

Correct AnswerverifiedShow Answer

What is the total cumulative value of foreign investments best referred to as?

Correct AnswerverifiedShow Answer

The Uruguay Round,finalized in December 1993,reduced protection for patents,trademarks,and copyrights.

Correct AnswerverifiedShow Answer

The World Trade Organization has estimated that the developed nations of the world can raise global economic welfare by $128 billion by:

Correct AnswerverifiedShow Answer

The globalization of markets and production and the resulting growth of world trade,foreign direct investment,and imports all imply that firms are finding their home markets protected from foreign competitors.

Correct AnswerverifiedShow Answer

A number of econometric studies have found consistent evidence of a hump-shaped relationship between income levels and pollution levels.According to this,as an economy grows and income levels rise:

Correct AnswerverifiedShow Answer

The General Agreement on Tariffs and Trade (GATT) was responsible for _____.

Correct AnswerverifiedShow Answer

Throughout the 1990s,the amount of foreign direct investment directed at both developed and developing nations increased dramatically.This trend reflects:

Correct AnswerverifiedShow Answer

The expansion of world trade implies that nations are becoming less dependent on each other for important goods and services.

Correct AnswerverifiedShow Answer

"Beggar thy neighbor" retaliatory trade policies involved countries progressively lowering trade barriers against each other,which contributed to the Great Depression of the 1930s.

Correct AnswerverifiedShow Answer

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Containerization has revolutionized the ...
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