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CHAPTER_1_THE_INTERNATIONAL_ECONOMY_AND_GLOBALIZATION 1. A primary reason why nations conduct international trade is because: a. Some nations prefer to produce one thing while others produce other things b. Resources are not equally distributed among all trading nations c. Trade enhances opportunities to accumulate profits d. Interest rates are not identical in all trading nations ANSWER: b POINTS: 1 DIFFICULTY: Easy NATIONAL STANDARDS: United States - 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: Knowledge 2. A main advantage of specialization results from: a. Economies of large-scale production b. The specializing country behaving as a monopoly c. Smaller production runs resulting in lower unit costs d. High wages paid to foreign workers ANSWER: a POINTS: 1 DIFFICULTY: Moderate 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: Comprehension 3. International trade in goods and services is sometimes used as
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