CHAPTER_1__THE_INTERNATIONAL_ECONOMY_AND_GLOBALIZATION

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CHAPTER_1__THE_INTERNATIONAL_ECONOMY_AND_GLOBALIZATION

1.A main advantage of specialization results from:

• Economies of large-scale production
• The specializing country behaving as a monopoly
• Smaller production runs resulting in lower unit costs
• High wages paid to foreign workers

ANSWER: a

POINTS: 1

DIFFICULTY: Moderate

QUESTION TYPE: Multiple Choice

HAS VARIABLES: False

NATIONAL STANDARDS: United States - BUSPROG: Diversity STATE STANDARDS: United States - PA - DISC: Gains from trade, speciali - DISC: Gains from trade, specialization and trade

TOPICS: Why is Globalization Important?

KEYWORDS: BLOOM'S: Understand

DATE CREATED: 6/22/2016 3:06 PM

DATE MODIFIED: 6/22/2016 3:06 PM

2.A primary reason why nations conduct international trade is because:

• Some nations prefer to produce one thing while others produce other things
• Resources are not equally distributed among all trading nations
• Trade enhances opportunities to accumulate profits
• Interest rates are not identical in all trading nations

ANSWER: b

POINTS: 1

DIFFICULTY: Easy

QUESTION TYPE: Multiple Choice

HAS VARIABLES: False

NATIONAL STANDARDS: United States - BUSPROG: Promotion - BUSPROG: Analytic STATE STANDARDS: United States - PA - DISC: Gains from trade, speciali - DISC: Gains from trade, specialization and trade

TOPICS: Globalization of Economic Activity

KEYWORDS: BLOOM'S: Remember

DATE CREATED: 6/22/2016 3:06 PM

DATE MODIFIED: 6/22/2016 3:06 PM

3.International trade in goods and services is sometimes used as a substitute for all of the following except:

• International movements of capital
• International movements of labor
• Domestic production of the same goods and services
• Domestic production of different goods and services

ANSWER: d

POINTS: 1

DIFFICULTY: Challenging

International Economics, 16e Robert Carbaugh (Test Bank All Chapters, 100% Original Verified, A+ Grade) 1 / 4

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QUESTION TYPE: Multiple Choice

HAS VARIABLES: False

NATIONAL STANDARDS: United States - BUSPROG: Diversity STATE STANDARDS: United States - PA - DISC: Gains from trade, speciali - DISC: Gains from trade, specialization and trade

TOPICS: Globalization of Economic Activity

KEYWORDS: BLOOM'S: Understand

DATE CREATED: 6/22/2016 3:06 PM

DATE MODIFIED: 6/22/2016 3:06 PM

4.If a nation has an open economy, it means that the nation:

• Allows private ownership of capital
• Has flexible exchange rates
• Has fixed exchange rates
• Conducts trade with other countries

ANSWER: d

POINTS: 1

DIFFICULTY: Easy

QUESTION TYPE: Multiple Choice

HAS VARIABLES: False

NATIONAL STANDARDS: United States - BUSPROG: Diversity STATE STANDARDS: United States - PA - DISC: Gains from trade, speciali - DISC: Gains from trade, specialization and trade

TOPICS: The United States as an Open Economy

KEYWORDS: BLOOM'S: Understand

DATE CREATED: 6/22/2016 3:06 PM

DATE MODIFIED: 6/22/2016 3:06 PM

5.International trade forces domestic firms to become more competitive in terms of:

• The introduction of new products
• Product design and quality
• Product price
• All of the above

ANSWER: d

POINTS: 1

DIFFICULTY: Moderate

QUESTION TYPE: Multiple Choice

HAS VARIABLES: False

NATIONAL STANDARDS: United States - BUSPROG: Diversity STATE STANDARDS: United States - PA - DISC: Gains from trade, speciali - DISC: Gains from trade, specialization and trade

TOPICS: The United States as an Open Economy

KEYWORDS: BLOOM'S: Understand

DATE CREATED: 6/22/2016 3:06 PM

DATE MODIFIED: 6/22/2016 3:06 PM 2 / 4

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• The movement to free international trade is most likely to generate short-term unemployment in which industries?
• Industries in which there are neither imports nor exports
• Import-competing industries
• Industries that sell to domestic and foreign buyers
• Industries that sell to only foreign buyers

ANSWER: b

POINTS: 1

DIFFICULTY: Moderate

QUESTION TYPE: Multiple Choice

HAS VARIABLES: False

NATIONAL STANDARDS: United States - BUSPROG: Diversity STATE STANDARDS: United States - PA - DISC: Gains from trade, speciali - DISC: Gains from trade, specialization and trade

TOPICS: Globalization and Competition

KEYWORDS: BLOOM'S: Understand

DATE CREATED: 6/22/2016 3:06 PM

DATE MODIFIED: 6/22/2016 3:06 PM

7. International trade is based on the idea that:

• Exports should exceed imports
• Imports should exceed exports
• Resources are more mobile internationally than are goods
• Resources are less mobile internationally than are goods

ANSWER: d

POINTS: 1

DIFFICULTY: Easy

QUESTION TYPE: Multiple Choice

HAS VARIABLES: False

NATIONAL STANDARDS: United States - BUSPROG: Diversity STATE STANDARDS: United States - PA - DISC: Gains from trade, speciali - DISC: Gains from trade, specialization and trade

TOPICS: Globalization of Economic Activity

KEYWORDS: BLOOM'S: Understand

DATE CREATED: 6/22/2016 3:06 PM

DATE MODIFIED: 6/22/2016 3:06 PM

8. Most of the world's population now lives in countries that are:

• integrated into world markets
• becoming integrated into world markets
• near poverty
• a and b

ANSWER: d

POINTS: 1

DIFFICULTY: Moderate

QUESTION TYPE: Multiple Choice

HAS VARIABLES: False 3 / 4

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NATIONAL STANDARDS: United States - BUSPROG: Diversity STATE STANDARDS: United States - PA - DISC: Gains from trade, speciali - DISC: Gains from trade, specialization and trade

TOPICS: Is International Trade an Opportunity or Threat to Workers?

KEYWORDS: BLOOM'S: Understand

DATE CREATED: 6/22/2016 3:06 PM

DATE MODIFIED: 6/22/2016 3:06 PM

9. International trade benefits:

• all workers
• most workers
• many workers
• None of these is correct

ANSWER: c

POINTS: 1

DIFFICULTY: Moderate

QUESTION TYPE: Multiple Choice

HAS VARIABLES: False

NATIONAL STANDARDS: United States - BUSPROG: Diversity STATE STANDARDS: United States - PA - DISC: Gains from trade, speciali - DISC: Gains from trade, specialization and trade

TOPICS: Is International Trade an Opportunity or Threat to Workers?

KEYWORDS: BLOOM'S: Understand

DATE CREATED: 6/22/2016 3:06 PM

DATE MODIFIED: 6/22/2016 3:06 PM

• The largest amount of trade with the United States in recent years has been conducted by:
• Canada
• Germany
• Chile
• United Kingdom

ANSWER: a

POINTS: 1

DIFFICULTY: Easy

QUESTION TYPE: Multiple Choice

HAS VARIABLES: False

NATIONAL STANDARDS: United States - BUSPROG: Diversity STATE STANDARDS: United States - PA - DISC: Gains from trade, speciali - DISC: Gains from trade, specialization and trade

TOPICS: The United States as an Open Economy

KEYWORDS: BLOOM'S: Remember

DATE CREATED: 6/22/2016 3:06 PM

DATE MODIFIED: 6/22/2016 3:06 PM

11. Increased foreign competition tends to:

• Intensify inflationary pressures at home
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