QUESTION The World Trade Organization, the International Monetary Fund and its sister institution the World Bank, and the United Nations were all created by voluntary agreement between individual nation-states. Indicate whether the statement is true or false. ANSWER TRUE Over the past half century, a number of important global institutions have been created to […]
QUESTION Substantial impediments, such as barriers to foreign direct investment, make it difficult for firms to achieve the optimal dispersion of their productive activities to locations around the globe. Indicate whether the statement is true or false. ANSWER TRUE Substantial impediments make it difficult for firms to achieve the optimal dispersion of their productive […]
QUESTION The IMF is less controversial than its sister institution, the World Bank. Indicate whether the statement is true or false. ANSWER FALSE The World Bank is less controversial than its sister institution, the IMF. The World Bank has focused on making low-interest loans to cash-strapped governments in poor nations that wish to undertake […]
QUESTION Foreign direct investment (FDI) occurs when a firm invests resources in business activities outside its home country. Indicate whether the statement is true or false. ANSWER TRUE Foreign direct investment (FDI) occurs when a firm invests resources in business activities outside its home country.
QUESTION After World War II, the advanced nations of the West committed themselves to increasing barriers to the free flow of goods, services, and capital between nations. Indicate whether the statement is true or false. ANSWER FALSE Having learned from past experience, the advanced industrial nations of the West committed themselves after World War […]
QUESTION The globalization of markets and production and the resulting growth of world trade, foreign direct investment, and imports all imply that firms are finding it easier to protect themselves from attack by foreign competitors Indicate whether the statement is true or false. ANSWER FALSE The globalization of markets and production and the resulting […]
QUESTION The lowering of trade and investment barriers allows firms to base production at the optimal location for that activity. Indicate whether the statement is true or false. ANSWER TRUE The lowering of trade and investment barriers allows firms to base production at the optimal location for that activity.
QUESTION As a result of international trade, the economies of the world’s nation-states are becoming less intertwined. Indicate whether the statement is true or false. ANSWER FALSE The economies of the world’s nation-states are becoming more intertwined. As trade expands, nations are becoming increasingly dependent on each other for important goods and services
QUESTION Containerization has revolutionized the transportation business, significantly lowering the costs of shipping goods over long distances. Indicate whether the statement is true or false. ANSWER TRUE In economic terms, the most important major innovations in transportation technology are probably the development of commercial jet aircraft and superfreighters and the introduction of containerization, which […]
QUESTION The Uruguay Round extended GATT to cover services as well as manufactured goods. Indicate whether the statement is true or false. ANSWER TRUE The Uruguay Round reduced trade barriers; extended GATT to cover services as well as manufactured goods; provided enhanced protection for patents, trademarks, and copyrights; and established the World Trade Organization […]
