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Chapter 01: The International Economy and Globalization
Copyright Cengage Learning. Poweredby Cognero.Page 1 1.Which of the following is a dimension of integration into the world economy?
- Fair labor standards.
- Flexible exchange rates.
- Decreased foreign competition.
- Dependence on imported materials.
ANSWER: d
FEEDBACK: a.
b.c.
- Integration involves several dimensions, including the dependence on imported
materials.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: - Analytic STATE STANDARDS: United States - PA - DISC1: - Gains from trade, specialization, and trade
TOPICS: The United States as an Open Economy
KEYWORDS: BLOOM'S: Understand 2.Which of the following is a disadvantage of globalization?
- Living standards can increase more rapidly.
- Global competition and cheap imports keep a constraint on prices.
- Easier access to foreign investment and low interest rates.
- Companies building state-of-the-art factories in low-wage countries.
ANSWER: d
FEEDBACK: a.
b.c.
- American employees can lose their competitiveness when companies build
state-of-the-art factories in low-wage countries, making them as productive as those in the United States.
POINTS: 1
DIFFICULTY: Challenging
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: - Analytic STATE STANDARDS: United States - PA - DISC1: - Gains from trade, specialization, and trade
TOPICS: Has Globalization Gone Too Far?
KEYWORDS: BLOOM'S: Remember 3.Which statement about globalization is true?
- It has led to more quotas on trade around the world.
- It is a purely economic term used to describe interrelated global markets.
International Economics, 18e Robert Carbaugh (Test Bank All Chapters, 100% Original Verified, A+ Grade) 1 / 4
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- It has been fueled by trade, immigration, and foreign investment.
- It is the process by which more countries are becoming economically self-sufficient around the globe.
ANSWER: c
FEEDBACK: a.
b.
- Globalization consists of the increased interaction of product and resource
markets across nations via trade, immigration, and foreign investment.d.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: - Analytic STATE STANDARDS: United States - PA - DISC1: - Gains from trade, specialization, and trade
TOPICS: Globalization of Economic Activity
KEYWORDS: BLOOM'S: Understand
- Which statement is true about import restrictions?
- They decrease the volume of exports.
- They lead to more jobs for domestic workers.
- They decrease imports and increase exports.
- They are more conducive to prosperity than free trade.
ANSWER: a
FEEDBACK: a. Trade restrictions that decrease the volume of imports will also decrease exports.b.
c.
d.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: - Analytic STATE STANDARDS: United States - PA - DISC1: - Gains from trade, specialization, and trade
TOPICS: Common Fallacies of International Trade
KEYWORDS: BLOOM'S: Understand
- Most of the world's population now lives in nations that are
- integrated or becoming integrated into world markets.
- trying to overcome economic isolation.
- cutting back on foreign investment.
- economically independent.
ANSWER: a
FEEDBACK: a. In today’s world, no nation exists in economic isolation.
b.
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c.
d.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: - Analytic STATE STANDARDS: United States - PA - DISC1: - Gains from trade, specialization, and trade
TOPICS: Introduction
KEYWORDS: BLOOM'S: Understand
- International trade generally
- decreases jobs.
- generates income.
- decreases productivity.
- reduces competition.
ANSWER: b
FEEDBACK: a.
- Producing goods for export generates jobs and income for domestic workers.
c.
d.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: - Analytic STATE STANDARDS: United States - PA - DISC1: - Gains from trade, specialization, and trade
TOPICS: Is International Trade an Opportunity or Threat to Workers?
KEYWORDS: BLOOM'S: Understand
- The largest amount of trade with the United States in recent years has been conducted with
- China.
- Germany.
- Canada.
- the United Kingdom.
ANSWER: a
FEEDBACK: a. China heads the list of United States’ trading partners.
b.
c.
d.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False 3 / 4
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NATIONAL STANDARDS: United States - BUSPROG: - Analytic STATE STANDARDS: United States - PA - DISC1: - Gains from trade, specialization, and trade
TOPICS: The United States as an Open Economy
KEYWORDS: BLOOM'S: Remember
- What led to the sharp loss of market share in the example of the Eastman Kodak Company?
- increased desire for higher-quality product substitutes
- consumer concern over Eastman Kodak’s near monopoly in the U.S. markets
- lack of innovation in emerging digital technologies
- increased profits of domestic import-competing industries
ANSWER: c
FEEDBACK: a.
b.
- Kodak provides a striking example of an industrial giant that faltered in the face
of global competition and advancing technology. It was slow in launching the production of digital cameras and failed to understand that smartphones replaced cameras.d.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: - Analytic STATE STANDARDS: United States - PA - DISC1: - Gains from trade, specialization, and trade
TOPICS: The United States as an Open Economy
KEYWORDS: BLOOM'S: Understand
- Which statement is true about international trade?
- It is zero-sum game.
- Imports always result in domestic unemployment.
- Tariffs on imports always protect domestic jobs.
- Imports and exports are connected; as one falls, the other generally rises.
ANSWER: d
FEEDBACK: a.
b.
c.
- The drag on an economy caused by rising imports tends to be offset by the
stimulus on the economy caused by rising exports.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: - Analytic STATE STANDARDS: United States - PA - DISC1: - Gains from trade, specialization, and trade
TOPICS: Common Fallacies of International Trade
KEYWORDS: BLOOM'S: Understand
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