Economic Development and Globalization Textbook Exam Questions - 1874 Verified Questions

Economic Development and Globalization Textbook Exam Questions https://quizplus.com/study-set/1081 17 Chapters 1874 Verified Questions

Economic Development and Globalization Textbook Exam Questions Course Introduction This course explores the complex relationship between economic development and globalization, analyzing how global integration influences growth, poverty reduction, and inequality in both developing and developed nations. Students will examine key theories and concepts, the role of international institutions, trade, investment flows, and the impact of policy decisions on economic outcomes. The course also addresses challenges such as sustainable development, technological change, and the political and social dimensions of globalization, encouraging critical analysis of real-world case studies and policy debates.

Recommended Textbook International Economics 14th Edition by Robert Carbaugh

Available Study Resources on Quizplus 17 Chapters 1874 Verified Questions 1874 Flashcards Source URL: https://quizplus.com/study-set/1081

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Chapter 1: The International Economy and Globalization Available Study Resources on Quizplus for this Chatper 48 Verified Questions 48 Flashcards Source URL: https://quizplus.com/quiz/21353

Sample Questions Q1) The United States exports a larger percentage of its gross domestic product than Japan, Germany, and Canada.

A)True B)False Answer: False Q2) Opening the economy to international trade tends to lessen inflationary pressures at home.

A)True B)False Answer: True Q3) International trade tends to cause welfare losses to at least some groups in a country: A) The less mobile the country's resources B) The more mobile the country's resources C) The lower the country's initial living standard D) The higher the country's initial living standard Answer: A Q4) What is the most important factor which contributes to competitiveness?

Answer: Key to the concept of competitiveness is productivity, or output per worker hour.

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Chapter 2: Foundations of Modern Trade Theory: Comparative Advantage Available Study Resources on Quizplus for this Chatper 170 Verified Questions 170 Flashcards Source URL: https://quizplus.com/quiz/21354

Sample Questions Q1) According to Ricardo, a country will have a comparative advantage in the product in which its: A) Labor productivity is relatively low B) Labor productivity is relatively high C) Labor mobility is relatively low D) Labor mobility is relatively high Answer: B Q2) If Canada has a higher wage level and higher labor productivity than Mexico, Canada will necessarily produce a good at a higher labor cost than Mexico.

A)True B)False Answer: False Q3) Assume 1990 to be the base year. If by the end of 2004 a country's export price index rose from 100 to 125 while its import price index rose from 100 to 125, its terms of trade would equal 100.

A)True B)False Answer: True To view all questions and flashcards with Page answers, 4 click on the resource link above.

Chapter 3: Sources of Comparative Advantage Available Study Resources on Quizplus for this Chatper 109 Verified Questions 109 Flashcards Source URL: https://quizplus.com/quiz/21355

Sample Questions Q1) According to Ricardian theory, comparative advantage depends on relative differences in labor productivity.

A)True B)False Answer: True Q2) The factor-endowment theory asserts that with specialization and trade there tends to occur an equalization in the relative resource prices of trading partners.

A)True B)False Answer: True Q3) In explaining international trade, the product life cycle theory focuses on A) Tastes and preferences B) The role of technological innovation C) Per-capita income levels of nations D) Both b and c Answer: B To view all questions and flashcards with answers, click on the resource link above.

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Chapter 4: Tariffs Available Study Resources on Quizplus for this Chatper 124 Verified Questions 124 Flashcards Source URL: https://quizplus.com/quiz/21356

Sample Questions Q1) If we consider the impact on both consumers and producers, then protection of the steel industry is: A) In the interest of the United States as a whole, but not in the interest of the state of Pennsylvania B) In the interest of the United States as a whole and in the interest of the state of Pennsylvania C) Not in the interest of the United States as a whole, but it might be in the interest of the state of Pennsylvania D) Not in the interest of the United States as a whole, nor in the interest of the state of Pennsylvania Q2) Refer to Exhibit 4.2. The tariff's revenue effect equals $6,000.

A)True B)False Q3) Consider Figure 4.1. With a per-unit tariff of $3, the quantity of imports decreases to: A) 20 calculators B) 40 calculators C) 50 calculators D) 70 calculators To view all questions and flashcards with answers, click on the resource link above.

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Chapter 5: Nontariff Trade Barriers Available Study Resources on Quizplus for this Chatper 133 Verified Questions 133 Flashcards Source URL: https://quizplus.com/quiz/21357

Sample Questions Q1) If a tariff and an import quota lead to equivalent increases in the domestic price of steel, then: A) The quota results in efficiency reductions but the tariff does not B) The tariff results in efficiency reductions but the quota does not C) They have different impacts on how much is produced and consumed D) They have different impacts on how income is distributed Q2) What is an OMA? Q3) Compared to an import quota, an equivalent tariff may provide a \(\underline { \text { less } }\) certain amount of protection for home producers since: A) A tariff has no deadweight loss in terms of production and consumption B) Foreign firms may absorb the tariff by offering exports at lower prices C) Tariffs are effective only if home demand is perfectly elastic D) Quotas do not result in increases in the price of the imported good Q4) Domestic content legislation applied to autos would tend to: A) Support wage levels of American autoworkers B) Lower auto prices for American autoworkers C) Encourage American automakers to locate production overseas D) Increase profits of American auto companies Q5) Is a tariff-rate quota a two-tier tariff? Why? 7 click on the resource link above.

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Chapter 6: Trade Regulations and Industrial Policies Available Study Resources on Quizplus for this Chatper 129 Verified Questions 129 Flashcards Source URL: https://quizplus.com/quiz/21358

Sample Questions Q1) The World Trade Organization was established by the ____ of multilateral trade negotiations: A) Kennedy Round B) Tokyo Round C) Uruguay Round D) Clinton Round Q2) It is generally agreed that the Smoot-Hawley Act of 1930 led to improvements in U.S. exports and an overall increase in U.S. output and employment.

A)True B)False Q3) The Uruguay Round of trade negotiations lowered: A) Trade sanctions levied against South Africa B) Trade sanctions levied against the Soviet Union C) Tariffs, but not nontariff trade barriers D) Tariffs as well as nontariff trade barriers Q4) What is the essential idea behind strategic trade policy?

Q5) Has industrial policy contributed significantly to Japan's economic growth?

Q6) Explain how advocates of strategic trade policy differ from the classical free traders in their treatment of externalities?

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Chapter 7: Trade Policies for the Developing Nations Available Study Resources on Quizplus for this Chatper 100 Verified Questions 100 Flashcards Source URL: https://quizplus.com/quiz/21359

Sample Questions Q1) Which trade strategy have developing countries used to restrict imports of manufactured goods so that the domestic market is preserved for home producers, who thus can take over markets already established in the country?

A) International commodity agreement B) Export promotion C) Multilateral contract D) Import substitution Q2) What are some of the growth strategies that have been employed by the developing nations? How successful are these strategies?

Q3) The developing nations are most of those in Africa, Asia, North America, and Western Europe.

A)True B)False Q4) Consider Figure 7.3. Under competitive conditions, the price of a barrel of oil equals: A) $7 B) $11 C) $12 D) $16 To view all questions and flashcards with answers, click on the resource link above.

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Chapter 8: Regional Trading Arrangements Available Study Resources on Quizplus for this Chatper 130 Verified Questions 130 Flashcards Source URL: https://quizplus.com/quiz/21360

Sample Questions Q1) Concerning transition economies, what do the advocates of shock therapy propose?

Q2) The failure of the centrally-planned economies was exemplified by all of the following\(\underline { \text { except } }\) A) Interest rates that were below free-market levels B) Consumer and producer goods of inferior quality C) Declining rates of economic growth D) Shortages of essential goods and services Q3) Which economic integration scheme is solely intended to abolish trade restrictions among member countries, while setting up common tariffs against nonmembers?

A) Economic union B) Common market C) Free trade area D) Customs union Q4) For countries forming a customs union, the trade-creation effect represents a welfare loss and the trade-diversion effect represents a welfare gain.

A)True B)False Q5) Explain the theory of optimum currency areas.

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Chapter 9: International Factor Movements and Multinational Enterprises Available Study Resources on Quizplus for this Chatper 96 Verified Questions 96 Flashcards Source URL: https://quizplus.com/quiz/21361

Sample Questions Q1) All of the following are potential advantages of an international joint venture \(\underline { \text { except } }\) A) Sharing research and development costs among corporations B) Forestalling protectionism against imports C) Establishing work rules promoting higher labor productivity D) Operating at diseconomy-of-scale output levels Q2) Consider Figure 9.1. Assume Venture Company's formation yields new cost reductions,

indicated

\(\underline {

by

MC₁=AC₁,

\text { wage concessions }

which

result

from

}\) accepted by Venture Company

employees. The net effect of Venture Company's formation on the welfare of the domestic economy is: A) No change B) Gain of $2 C) Loss of $2 D) Loss of $4 Q3) What are the disadvantages of forming joint ventures?

Q4) Forward vertical integration would occur if a U.S. automobile manufacturer acquired a German subsidiary.

A)True B)False

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Chapter 10: The Balance of Payments Available Study Resources on Quizplus for this Chatper 99 Verified Questions 99 Flashcards Source URL: https://quizplus.com/quiz/21362

Sample Questions Q1) Concerning the balance of payments, a current-account deficit results in a worsening of a country's net foreign investment position.

A)True B)False Q2) If Bank of America receives repayment for a loan it made to a Mexican firm, the U.S. capital account would register an inflow.

A)True B)False Q3) For the first time since World War I, in 1985 the United States became a net international: A) Exporter B) Importer C) Debtor D) Creditor Q4) Current-account transactions include direct foreign investment, purchases of foreign government securities, and commercial bank loans made abroad.

A)True B)False To view all questions and flashcards with answers, click on the resource link above.

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Chapter 11: Foreign Exchange Available Study Resources on Quizplus for this Chatper 121 Verified Questions 121 Flashcards Source URL: https://quizplus.com/quiz/21363

Sample Questions Q1) Given an upward-sloping supply schedule of pounds and a downward-sloping demand schedule for pounds, a decrease in the supply schedule causes an appreciation of the dollar against the pound.

A)True B)False Q2) In the forward market, the exchange rate is agreed on at the time of the currency contract, but payment is not made until the future delivery of the currency actually takes place.

A)True B)False Q3) Concerning the foreign exchange market, one can best say that: A) There is a spot market for virtually every currency in the world B) The market is highly centralized like the stock exchange C) Most foreign exchange payments are made with bank notes D) The values of the forward and spot rates are always in agreement Q4) The supply schedule of pesos has a negative-sloping region corresponding to the inelastic region on the Mexican demand schedule for foreign currency.

A)True B)False To view all questions and flashcards with answers, click on the resource link above.

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Chapter 12: Exchange-Rate Determination Available Study Resources on Quizplus for this Chatper 133 Verified Questions 133 Flashcards Source URL: https://quizplus.com/quiz/21364

Sample Questions Q1) Which of the following is likely to result in long-run depreciation of the U.S. dollar relative to the euro?

A) Relatively low interest rates in the United States B) Relatively high labor productivity in the United States C) Tariffs levied by the United States on steel imports from Europe D) Stronger American preferences for goods produced in Europe Q2) If consumer tastes in the United States change in favor of goods produced in France, the demand for francs will increase which causes an appreciation of the dollar against the franc under a floating exchange rate system.

A)True B)False Q3) The demand in the United States for yen will increase if, other things remaining equal: A) Labor costs rise in Japan B) Income rises in Japan C) Prices rise in Japan D) Interest rates rise in Japan Q4) In a free market, what determines exchange rates in the long run and the short run?

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Chapter 13: Mechanisms of International Adjustment Available Study Resources on Quizplus for this Chatper 107 Verified Questions 107 Flashcards Source URL: https://quizplus.com/quiz/21365

Sample Questions Q1) The value of the foreign trade multiplier equals the reciprocal of the sum of the marginal propensities to: A) Save plus import B) Import plus invest.

C) Consume plus export, D) Save plus import,.

Q2)

Refer

to

Figure

13.2.

Starting

at

equilibrium

income

$50

billion,

where

(S-I)₀ intersects (X-M)₀, suppose that dwindling thriftiness leads to an autonomous decrease in Australian saving to $5 billion. Australian income thus ____ which leads to Australia's trade account moving to a ____.

A) Rises to $60 billion, deficit of $2.5 billion B) Rises to $60 billion, deficit of $5 billion C) Falls to $40 billion, surplus of $2.5 billion D) Falls to $40 billion, surplus of $5 billion Q3) Under the gold standard of the 1800s, exchange rates were allowed to float freely in the currency markets.

A)True B)False Q4) What is the foreign repercussion effect?

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Chapter 14: Exchange-Rate Adjustments and the Balance of Payments Available Study Resources on Quizplus for this Chatper 100 Verified Questions 100 Flashcards Source URL: https://quizplus.com/quiz/21366

Sample Questions Q1) Complete currency pass-through arises when a 10 percent depreciation in the value of the dollar causes U.S.: A) Import prices to fall by 10 percent B) Import prices to rise by 10 percent C) Export prices to rise by 10 percent D) Export prices to rise by 20 percent Q2) Which analysis considers the extent by which foreign and domestic prices adjust to a change in the exchange rate in the short run: A) Monetary analysis B) Absorption analysis C) Expenditures analysis D) Pass-through analysis Q3) The effect of currency depreciation on the purchasing power of money balances and the resulting impact on domestic expenditures is emphasized by the: A) Absorption approach B) Monetary approach C) Fiscal approach D) Elasticity approach Q4) What is a pass-through relationship?Page 16 To view all questions and flashcards with answers, click on the resource link above.

Chapter 15: Exchange-Rate Systems and Currency Crises Available Study Resources on Quizplus for this Chatper 107 Verified Questions 107 Flashcards Source URL: https://quizplus.com/quiz/21367

Sample Questions Q1) A primary objective of dual exchange rates is to allow a country the ability to insulate its balance of payments from net: A) Current account transactions B) Unilateral transfers C) Merchandise trade transactions D) Capital account transactions Q2) To temporarily offset an \(\underline { \text { appreciation } }\) in the dollar's exchange value, the Federal Reserve could ____ the U.S. money supply which would promote a (an) ____ in U.S. interest rates and a ____ in investment flows to the United States.

A) Increase, decrease, decrease B) Increase, increase, decrease C) Decrease, decrease, decrease D) Decrease, increase, decrease Q3) Today, fixed exchange rates are used primarily by small, developing countries that tie their currencies to a key currency such as the U.S. dollar.

A)True B)False Q4) What is an SDR? To view all questions and flashcards with answers, click on the resource link above.

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Chapter 16: Macroeconomic Policy in an Open Economy Available Study Resources on Quizplus for this Chatper 72 Verified Questions 72 Flashcards Source URL: https://quizplus.com/quiz/21368

Sample Questions Q1) The Group of five (G-5) nations include Japan, Germany, China, and Australia.

A)True B)False Q2) Suppose that Brazil faces domestic inflation and a current account deficit. Should Brazil \(\underline { \text { devalue } }\) its currency, one would expect the: A) Inflation to become more severe--deficit to become less severe B) Inflation to become more severe--deficit to become more severe C) Inflation to become less severe--deficit to become less severe D) Inflation to become less severe--deficit to become more severe Q3) The goals of the Plaza Agreement of 1985 were to combat protectionism in the U.S. Congress, promote world economic expansion by stimulating demand in Germany and Japan, and to ease the burden of the U.S. debt service.

A)True B)False Q4) A nation realizes internal balance if economy achieves full employment and price stability.

A)True B)False Q5) What policy instrument should be used when demand-pull inflation exists?

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Chapter 17: International Banking: Reserves, Debt, and Risk Available Study Resources on Quizplus for this Chatper 96 Verified Questions 96 Flashcards Source URL: https://quizplus.com/quiz/21369

Sample Questions Q1) Concerning international lending risk, country risk refers to the risk that part or all of the interest or principal of a loan will not be repaid.

A)True B)False Q2) Why do countries hold international reserves?

Q3) A debt buyback is a debt-reduction technique in which a government of a debtor nation buys loans from commercial banks at a discount.

A)True B)False Q4) In response to the international debt problem, the United States set up a special fund in 1986 to help make up for lost oil revenues. Under the plan, the United States would make more money available as world oil prices fell. This plan was designed to help: A) Argentina B) Saudi Arabia C) Mexico D) Brazil Q5) Are international reserve needs different for different exchange rate regimes?

Q6) Describe the eurocurrency market.

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