QUESTION Which of the following has been declining in the developing nations of the world such as China, India, Russia, Indonesia, Thailand, South Korea, Mexico, and Brazil? A. Economic opportunities for international trade B. Industrialization C. Contribution toward the share of world output D. The stock of foreign direct investment E. Barriers to the free […]
QUESTION Which of the following was a part of the agenda of the Doha Round of talks launched by the WTO? A. Limiting the use of antidumping laws B. Abolishing the International Monetary Fund C. Increasing tariffs on industrial goods, services, and agricultural products D. Persuading member governments to cut defense spending E. Establishing GATT […]
QUESTION The lowering of trade and investment barriers: A. protects domestic industries from foreign competition. B. was not an agenda of the Uruguay Round. C. allows firms to base production at optimal locations outside their home country. D. creates an unfavorable environment for FDI. E. caused the Great depression of the 1930s. ANSWER C
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. […]
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 […]
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 […]
QUESTION The growing income inequality is a result of the wages for skilled workers being discounted. Indicate whether the statement is true or false. ANSWER FALSE The growing income inequality is a result of the wages for skilled workers being bid up by the labor market and the wages for unskilled workers being discounted. […]
QUESTION Which of the following is an argument put forth by critics of the IMF? A. It increases barriers to the free flow of goods and investment across national borders. B. It provides assistance only to developing nations and completely ignores the developed nations. C. It is not powerful enough to ensure that the nation-states […]
QUESTION In general, as countries get richer, they enact tougher environmental and labor regulations. Indicate whether the statement is true or false. ANSWER TRUE Supporters of free trade and greater globalization argue that tougher environmental regulations and stricter labor standards go hand in hand with economic progress. In general, as countries get richer, they […]
QUESTION According to the UN Charter, one of the four purposes of the UN is to: A. be a center for harmonizing the actions of nations. B. encourage high tariffs on imports of manufactured goods. C. provide enhanced protection for patents. D. promote the establishment of multinational treaties. E. facilitate globalization of production. ANSWER […]
