Javi Lpz Gmz
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Quiz on global economy, created by Javi Lpz Gmz on 13/03/2016.

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Javi Lpz Gmz
Created by Javi Lpz Gmz almost 9 years ago
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global economy

Question 1 of 51

1

Choose the correct answer. Economic globalization is:

Select one of the following:

  • The process that expands international trade, international investment, and immigration relative to national output, investment, and population growth.

  • The process that merely expands international trade

  • The process that merely expands international investment.

Explanation

Question 2 of 51

1

Which are the mayor aspect of economic globalization identified by economic literature:

Select one of the following:

  • Only globalization of consumption

  • Only globalization of production and ownership

  • Both a) and b) as globalization of labor

Explanation

Question 3 of 51

1

Which type of economic globalization typically refers to the growing volume of international trade?

Select one of the following:

  • Globalization in consumption

  • Globalization in labor

  • Globalization in of production and ownership

Explanation

Question 4 of 51

1

Choose the correct answer. Direct Foreign Investment (FDI):

Select one of the following:

  • Brings only an expansion of the physical capital stock

  • rings only knowledge about management techniques.

  • a) and b) as technical innovation and knowledge about production

Explanation

Question 5 of 51

1

Globalization of labor Implies:

Select one of the following:

  • That the nationality of the owner and controller of productive assets becomes independent of the nation housing them.

  • An increasing number of workers who make products and services for export or cross borders for work.

  • That the nation in which a product was made becomes independent of the nationality of the consumer.

Explanation

Question 6 of 51

1

What aspect of economic globalization implies that the nation in which a product was made becomes independent of the nationality of the consumer?

Select one of the following:

  • Globalization in consumption

  • Globalization in labor

  • Globalization in of production and ownership

Explanation

Question 7 of 51

1

)Which type of economic globalization typically refers to the phenomenon of rising cross-border financial flows (financial globalization)?

Select one of the following:

  • globalization of labor and con

  • globalization of production and ownership

  • Direct Foreign Investment (FDI)

Explanation

Question 8 of 51

1

Choose the correct answer. Related with the globalization in labor, there have also been increasing flows of migrants across borders (international labor migration), through:
a) Legal routes only
b) Informal routes only
c) Both legal and informal routes.

Select one of the following:

  • Legal routes only

  • Informal routes only

  • Both legal and informal routes.

Explanation

Question 9 of 51

1

Which is the name given to the best educated generation in human history and the generation of digital natives?

Select one of the following:

  • X Generation

  • Generation Y

  • New generation

Explanation

Question 10 of 51

1

If we say that the demand for workers is being most pronounced in emerging markets thanks to continued brisk growth in most of these economies, regarding which phenomenon are we talking about?

Select one of the following:

  • Tectonic market shifts are transforming the global business landscape.

  • A new “geography of talent”

  • Digital skills and Agile thinking

Explanation

Question 11 of 51

1

Choose the correct answer.
a) The speed of the globalization process is closely related to the ability of the state to supply the conditions of a successful market economy.
b) Globalization appears as the new ideology of capitalism.
c) Both a) and b) are right

Select one of the following:

  • The speed of the globalization process is closely related to the ability of the state to supply the conditions of a successful market economy.

  • Globalization appears as the new ideology of capitalism.

  • Both a) and b) are right

Explanation

Question 12 of 51

1

Free trade refers to:
a) A situation where a government does not attempt to restrict what its citizens can buy from another country or what they can sell to another country.
b) A situation that allows to arbitrage in order to earn profits from the price difference between previously separated markets
c) Both a) and b) are right

Select one of the following:

  • A situation where a government does not attempt to restrict what its citizens can buy from another country or what they can sell to another country.

  • A situation that allows to arbitrage in order to earn profits from the price difference between previously separated markets

  • Both a) and b) are right

Explanation

Question 13 of 51

1

Which wave of globalization was focused on integration between rich countries as Europe, North America and Japan restored trade relations through a series of multilateral trade liberalizations?

Select one of the following:

  • First wave (1870-1914)

  • Second Wave (1950-1980)

  • Third wave (1980-present)

Explanation

Question 14 of 51

1

Which wave of globalization was sparked by advances in transport and reductions in trade barriers such that the level of exports to world income doubled to 8 percent as international trade boomed?

Select one of the following:

  • First wave(1870-1914)

  • Second Wave (1950-1980)

  • Third wave (1980-present)

Explanation

Question 15 of 51

1

Which wave of globalization sparked that 10 percent of the world's population moved to new countries searching for better jobs?

Select one of the following:

  • First wave(1870-1914)

  • Second Wave (1950-1980)

  • Third wave (1980-present)

Explanation

Question 16 of 51

1

Choose the correct answer. After World War II:

Select one of the following:

  • Advanced countries made a commitment to higher barriers to trade and investment.

  • Since 1950, average tariffs have increased significantly

  • Advanced countries made a commitment to lower barriers to trade and investment.

Explanation

Question 17 of 51

1

Free trade refers to a situation where:

Select one of the following:

  • Government does not attempt to restrict what its citizens can buy from another country or what they can sell to another country

  • Government tend to intervene in international trade to protect the interests of politically important groups

  • Both a) and b) are right

Explanation

Question 18 of 51

1

A tariff is an instrument of trade policy that consist in:

Select one of the following:

  • A government payment to a domestic producer

  • A tax levied on imports that effectively raises the cost of imported products relative to domestic products

  • A direct restriction on the quantity of some good that may be imported into a country

Explanation

Question 19 of 51

1

A subsidy is an instrument of trade policy that consist in:

Select one of the following:

  • A government payment to a domestic producer

  • A tax levied on imports that effectively raises the cost of imported products relative to domestic products

  • A direct restriction on the quantity of some good that may be imported into a country

Explanation

Question 20 of 51

1

An Import quota is an instrument of trade policy that consist in:
a) A government payment to a domestic producer
b) A tax levied on imports that effectively raises the cost of imported products relative to domestic products
c) A direct restriction on the quantity of some good that may be imported into a country

Select one of the following:

  • A government payment to a domestic producer

  • A tax levied on imports that effectively raises the cost of imported products relative to domestic products

  • A direct restriction on the quantity of some good that may be imported into a country

Explanation

Question 21 of 51

1

The extra profit that producers make when supply is artificially limited by an import quota is:
a) A Voluntary export restraints
b) A quota rent
c) A Tariff rate quota

Select one of the following:

  • A Voluntary export restraints

  • A quota rent

  • A Tariff rate quota

Explanation

Question 22 of 51

1

) Choose the wrong answer.

Select one of the following:

  • Tariffs are unambiguously pro-producer and anti-consumer and reduce the overall efficiency of the world economy

  • Subsidies help domestic producers compete against low-cost foreign imports

  • Tariffs are unambiguously pro-consumer and anti-producer and increase the overall efficiency of the world economy

Explanation

Question 23 of 51

1

Choose the right answer. Ad valorem tariffs:

Select one of the following:

  • Are levied as a fixed charge for each unit of a good imported

  • Are levied as a proportion of the value of the imported good

  • Are a hybrid of a quota and a tariff where a lower tariff is applied to imports within the quota than to those over the quota

Explanation

Question 24 of 51

1

A local content requirement is an instrument of trade policy that:
a) Demands that some specific fraction of a good be produced domestically
b) Establishes bureaucratic rules that are designed to make it difficult for imports to enter a country
c) Forbids selling goods in a foreign market below their cost of production.

Select one of the following:

  • Demands that some specific fraction of a good be produced domestically

  • Establishes bureaucratic rules that are designed to make it difficult for imports to enter a country

  • Forbids selling goods in a foreign market below their cost of production.

Explanation

Question 25 of 51

1

Administrative trade polices is an instrument of trade policy that:

Select one of the following:

  • Demands that some specific fraction of a good be produced domestically

  • Establishes bureaucratic rules that are designed to make it difficult for imports to enter a country

  • Forbids selling goods in a foreign market below their cost of production.

Explanation

Question 26 of 51

1

Which of these trade policies hurt consumers by denying access to possibly superior foreign products?

Select one of the following:

  • local content requirement

  • Antidumping policies

  • Administrative trade

Explanation

Question 27 of 51

1

Which of these trade policies are designed to punish foreign firms in order to protect domestic producers from “unfair” foreign competition?

Select one of the following:

  • local content requirement

  • Antidumping policies

  • Administrative trade

Explanation

Question 28 of 51

1

Choose the wrong answer. Local content requirements:

Select one of the following:

  • Punish domestic producers and jobs, but consumers face lower prices

  • Benefits domestic producers and jobs, but consumers face higher prices

  • Requirement can be in physical terms or in value terms

Explanation

Question 29 of 51

1

Which type of arguments exit in order justify the government intervention in trade?

Select one of the following:

  • Legal arguments only

  • Political arguments only

  • Political and economic arguments mainly

Explanation

Question 30 of 51

1

Choose the right answer. Political reasons argued in order to justify government intervention:

Select one of the following:

  • are typically concerned with protecting the interests of certain groups within a nation (normally producers), often at the expense of other groups (normally consumers)

  • are typically concerned with boosting the overall wealth of a nation (to the benefit of all, both producers and consumers)

  • Both a) and b) are right.

Explanation

Question 31 of 51

1

Choose the right answer. Economic arguments for government intervention in international trade include:

Select one of the following:

  • Protecting jobs, protecting industries deemed important for national security, retaliating to unfair foreign competition

  • The infant industry argument and Strategic trade policy

  • Both a) and b) are right

Explanation

Question 32 of 51

1

Choose the right answer. The infant industry argument suggests that:

Select one of the following:

  • An industry should be protected until it can develop and be viable and competitive internationally.

  • In cases where there may be important first mover advantages, governments can help firms from their countries attain these advantages

  • Both a) and b) are right

Explanation

Question 33 of 51

1

Choose the right answer. The Strategic Trade Policy suggests that:

Select one of the following:

  • In cases where there may be important first mover advantages, governments can help firms from their countries attain these advantages

  • Governments can help firms overcome barriers to entry into industries where foreign firms have an initial advantage

  • Both a) and b) are right

Explanation

Question 34 of 51

1

Choose the right answer. New trade theorists believe:

Select one of the following:

  • government intervention in international trade is always justified

  • government intervention in international trade is never justified

  • Both a) and b) are wrong

Explanation

Question 35 of 51

1

Choose the right answer. Classic trade theorists believe:

Select one of the following:

  • Disagree with new trade theorists

  • Agree partially with some new trade theorists

  • While strategic trade theory is appealing in theory, it may not be workable in practice – they suggest a revised case for free trade

Explanation

Question 36 of 51

1

) Who famous economist argues that strategic trade policies aimed at establishing domestic firms in a dominant position in a global industry are beggar-thy-neighbor policies that boost national income at the expense of other countries. A country that attempts to use such policies will probably provoke retaliation

Select one of the following:

  • Adam Smith

  • David Ricardo

  • Paul Krugman

Explanation

Question 37 of 51

1

Which was the philosophy that guided European thinking about international trade in the several centuries before Adam Smith?

Select one of the following:

  • Mercantilism

  • Imperialism

  • Colonialism

Explanation

Question 38 of 51

1

Choose the right answer. Mercantilists viewed international trade:

Select one of the following:

  • as a source of major benefits to a nation

  • As a zero-sum activity

  • Both a) and b) are right

Explanation

Question 39 of 51

1

Choose the right answer. A central belief of mercantilist was:

Select one of the following:

  • That national well-being or wealth was based on national holdings of gold and silver.

  • The government regulation of trade was necessary to provide the largest national benefits.

  • Both a) and b) are right

Explanation

Question 40 of 51

1

Choose the right answer. Based on mercantilist thinking, governments:

Select one of the following:

  • Imposed an array of taxes and prohibitions to limit imports

  • Subsidized and encouraged exports.

  • Both a) and b) are right

Explanation

Question 41 of 51

1

Choose the right answer. Neo-mercantilists believe that:

Select one of the following:

  • Exports are good because they create jobs in the country, and imports are bad because they take jobs from the country. Neo-mercantilists continue to depict trade as a zero-sum activity.

  • Imports are good because they create jobs in the country, and exports are bad because they take jobs in more country.

  • With the Economic Globalization international trade is not a zero-sum activity.

Explanation

Question 42 of 51

1

What are the key factors of influencing the development of trade from the point of Krugman model?

Select one of the following:

  • Product differentiation

  • Economies of Scale

  • Global Economics

Explanation

Question 43 of 51

1

What is the countries trading goal based on, in order to maximize the Profit regarding to the Krugman model?

Select one of the following:

  • Demand

  • Economies of Scale

  • Product differentiations

Explanation

Question 44 of 51

1

What is not an advantage of the Krugman model?

Select one of the following:

  • Economies of scales are possible

  • Comparative advantage for products

  • No specification between countries

Explanation

Question 45 of 51

1

Who benefits the most from the Krugman model?

Select one of the following:

  • Developed countries

  • Multinational companies

  • Developing countries

Explanation

Question 46 of 51

1

Which theory is giving the benefit of selling on the lowest costs?

Select one of the following:

  • Krugman model

  • Gravity model

  • Product lifecycle

Explanation

Question 47 of 51

1

Which types of intra-industry trade theory are there?

Select one of the following:

  • Horizontal and parallel

  • Vertical and parallel

  • Horizontal and vertical

Explanation

Question 48 of 51

1

This type of intra-industry trade theory refers to the simultaneous exports and imports of goods classified in the same sector and at the same stage of processing…

Select one of the following:

  • Horizontal

  • Vertical

  • Parallel

Explanation

Question 49 of 51

1

) Why do countries implement the intra-industry trade theory?

Select one of the following:

  • Lower transportation costs near borders

  • Overlapping demand segments

  • All of the above are correct

Explanation

Question 50 of 51

1

Which one of the answers is wrong? The product life cycle theory:

Select one of the following:

  • Explains the expected life cycle of a typical product from design to obsolescence.

  • Is divided into the phases of product introduction, product growth, maturity, and decline.

  • Its goal is to minimize its value and profitability at each stage.

Explanation

Question 51 of 51

1

The product life cycle theory regarding the international trade theory consists in:

Select one of the following:

  • Introduction, growth, maturity and decline

  • Introduction, expansion, maturity and decline

  • Introduction, development, maturity and decline

Explanation

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