QUESTION Supporters of globalization insist that dislocation in the form of lost jobs is a trade-off that will ultimately lead to the economy being better off. Which of the following is being justified in this case? A. Protectionism and retaliatory trade policy B. Free trade of goods and services C. Rise of communism D. High […]
QUESTION “Exporting jobs” to low-wage nations has contributed to: A. higher living standards in those countries that “export” the jobs. B. higher unemployment in wealthy advanced economies such as the United States. C. an increase in the income levels in those nations that “export” the jobs. D. lower standards of living in those countries to […]
QUESTION Critics of globalization say that exporting jobs to low-wage nations results in higher unemployment and lower living standards in their home nations. Which of the following statements does NOT support this argument? A. Globalization destroys manufacturing jobs in wealthy advanced economies. B. Globalization demonstrates a structural adjustment to a more integrated global economy. C. […]
QUESTION Globalization critics argue that the decline in unskilled wage rates in advanced economies is due to the: A. migration of low-wage manufacturing jobs offshore. B. technology-induced shift toward jobs that require significant education and skills. C. increased supply of highly skilled workers. D. decreasing demand for unskilled workers in developing nations. E. reducing national […]
QUESTION Growing income inequality between the skilled and unskilled workers in advanced nations, such as the United States, is a result of the: A. wages for skilled workers being bid up by the labor market and the wages for unskilled workers being discounted. B. decrease in the outsourcing of low-wage manufacturing jobs offshore and a […]
QUESTION In the context of the environment, globalization critics argue that: A. free trade discourages firms from advanced nations to move manufacturing facilities to less developed countries. B. adhering to labor and environmental regulations significantly increases the costs of manufacturing enterprises. C. manufacturing enterprises are put at a competitive disadvantage by moving their production facilities […]
QUESTION Silver Fire Electric Inc., a U.S.-based company, has productive activities in more than two countries. As a result, it would be most appropriate to refer to Silver Fire Electric as what type of enterprise? A. Greenfield B. Universal C. Private D. Multinational E. Public ANSWER D A multinational enterprise (MNE) is any business […]
QUESTION The NAFTA was formed in 1994 between: A. Canada, Mexico, and the United States. B. the United States, Brazil, and Argentina. C. Canada, Argentina, and Mexico. D. Colombia, Venezuela, and Brazil. E. Uruguay, Colombia, and Costa Rica. ANSWER A The North American Free Trade Agreement (NAFTA) was formed in 1994 between Canada, Mexico, […]
QUESTION What are mini-multinationals? A. Multinational firms from relatively small countries in terms of area B. Multinationals from the developing nations of the world C. Multinational firms that operate in only one foreign country D. Medium-sized and small multinationals E. Subsidiaries of large multinationals in foreign countries ANSWER D Medium-size and small multinationals are […]
QUESTION Which of the following is the most appropriate solution to the problem of rising carbon dioxide emissions in developed economies? A. Roll back the trade liberalization efforts that have fostered economic growth and globalization. B. Tie free trade agreements to the implementation of fewer environmental and labor laws in less developed countries. C. Get […]
