QUESTION Gerald bought his son, David, a computer two years ago. Recently, he decided to buy his daughter, Julian, a computer of her own. In the context of the two-year gap between the purchase of both the computers and Moore’s law, it is most likely that: A. Gerald paid a higher price for Julian’s computer. […]
Date: September 3rd, 2020
QUESTION While the lowering of trade barriers made globalization of markets and production a theoretical possibility, which of the following has made it a tangible reality? A. The advances in communication, information processing, and transportation technologies B. The rise of communism and the need for independent economies on a global scale C. The increasing diversity […]
Date: September 3rd, 2020
QUESTION Richard purchased a computer for $600 in 2014. Compared to the $900 computer that he had purchased way back in 2010, the new one seems to be more efficient in terms of the price he has paid and the power of the microprocessor technology. This is best explained by: A. product liability. B. property […]
Date: September 3rd, 2020
QUESTION Which of the following is most likely to be observed in today’s global economy? A. Increasing U.S. share of world output B. Large U.S. entrepreneurial firms dominating the international business scene C. Increasing U.S. dominance in the world economy and world trade picture D. Most of the nations being governed by centrally planned economies […]
Date: September 3rd, 2020
QUESTION The advent of containerization has: A. made the economies of the world’s nation-states less intertwined. B. made moving goods from one mode of transport to another extremely labor-intensive. C. significantly lowered the costs of shipping goods over long distances. D. slowed down the globalization of markets and production. E. increased costs of coordinating and […]
Date: September 3rd, 2020
QUESTION Which of the following countries has seen a relative decline in its share of world output between 1960 and 2012? A. United States B. Thailand C. Japan D. China E. South Korea ANSWER A In the early 1960s, the United States was still by far the world’s dominant industrial power. In 1960, the […]
Date: September 3rd, 2020
QUESTION Highly indebted poor countries (HIPCs) can bootstrap themselves out of poverty by pursuing retaliatory trade policies rather than free trade policies. Indicate whether the statement is true or false. ANSWER FALSE Free trade alone, some argue, is a necessary but not sufficient prerequisite to help HIPCs bootstrap themselves out of poverty.
Date: September 3rd, 2020
QUESTION Which of the following best exemplifies foreign direct investment (FDI)? A. Pure Pearls, a jewelry store in the United States, imports harvested pearls from Indonesia, Philippines, and Australia. B. Chivalry, a U.S.-based phone manufacturing company, has set up its own assembly plant in Japan to cater to the needs of the Asian market. C. […]
Date: September 3rd, 2020
QUESTION Despite all the talk about the emerging global village, differences between countries such as cultures and political systems are very profound and enduring. Indicate whether the statement is true or false. ANSWER TRUE Countries differ in their cultures, political systems, economic systems, legal systems, and levels of economic development. Despite all the talk […]
Date: September 3rd, 2020
QUESTION As a result of globalization, international businesses can avoid the haggle of currency exchanges during cross-border transactions. Indicate whether the statement is true or false. ANSWER FALSE Cross-border transactions also require that money be converted from the firm’s home currency into a foreign currency and vice versa. Because currency exchange rates vary in […]
Date: September 3rd, 2020
