QUESTION Which of the following statements is a general implication of globalization? A. Globalization is inevitable. B. From a purely economic perspective, globalization is all good. C. Globalization has no negative impacts on the economies of the developed world. D. Globalization has reduced the risks associated with global financial contagion. E. As a result of […]
QUESTION An argument in support of the falling barriers to international trade and investment is that the falling barriers: A. prohibit countries from specializing in the production of goods and services. B. drive the global economy toward greater prosperity. C. reduce the need to export jobs overseas. D. increase the bargaining power of business firms […]
QUESTION Which of the following has increased in the United States as a result of globalization? A. Unemployment rate B. Price of goods and services C. Demand for unskilled workers D. Standard of living E. Income equality between workers in skilled and unskilled sectors ANSWER A The popular feeling is that when corporations such […]
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 Michelle, an Italian fashion designer, sells her merchandise by exporting them to the United States, United Kingdom, and Brazil. According to this information, Michelle is most likely involved in: A. foreign direct investment. B. globalization of production. C. international trade. D. multinational enterprise. E. outsourcing. ANSWER C International trade refers to the exporting […]
QUESTION Which of the following statements reflects the changing demographics of the global economy? A. U.S. dominance in export markets has waned as Japan, Germany, and a number of newly industrialized countries have taken a larger share of world exports. B. The change in the position of the United States in terms of the share […]
QUESTION For foreign direct investment (FDI) to occur, a firm should primarily: A. conduct cross-border bartering with neighboring countries. B. invest resources in business activities outside its home country. C. export goods or services to consumers in another country. D. import goods or services from producers in another country. E. erect formidable barriers to international […]
QUESTION Which of the following refers to the total cumulative value of foreign investments? A. Purchasing power parity B. Multipoint pricing C. Stock of foreign direct investment D. Switch trading E. Bill of lading ANSWER C The stock of foreign direct investment refers to the total cumulative value of foreign investments.
