Question 1
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Choose the correct answer. Economic globalization is:
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The process that expands international trade, international investment, and immigration relative to national output, investment, and population growth.
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The process that merely expands international trade
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The process that merely expands international investment.
Question 2
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Which are the mayor aspect of economic globalization identified by economic literature:
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Only globalization of consumption
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Only globalization of production and ownership
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Both a) and b) as globalization of labor
Question 3
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Which type of economic globalization typically refers to the growing volume of international trade?
Question 4
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Choose the correct answer. Direct Foreign Investment (FDI):
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Brings only an expansion of the physical capital stock
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rings only knowledge about management techniques.
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a) and b) as technical innovation and knowledge about production
Question 5
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Globalization of labor Implies:
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That the nationality of the owner and controller of productive assets becomes independent of the nation housing them.
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An increasing number of workers who make products and services for export or cross borders for work.
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That the nation in which a product was made becomes independent of the nationality of the consumer.
Question 6
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What aspect of economic globalization implies that the nation in which a product was made becomes independent of the nationality of the consumer?
Question 7
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)Which type of economic globalization typically refers to the phenomenon of rising cross-border financial flows (financial globalization)?
Answer
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globalization of labor and con
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globalization of production and ownership
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Direct Foreign Investment (FDI)
Question 8
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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.
Question 9
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Which is the name given to the best educated generation in human history and the generation of digital natives?
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X Generation
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Generation Y
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New generation
Question 10
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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?
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Tectonic market shifts are transforming the global business landscape.
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A new “geography of talent”
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Digital skills and Agile thinking
Question 11
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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
Question 12
Question
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
Answer
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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.
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A situation that allows to arbitrage in order to earn profits from the price difference between previously separated markets
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Both a) and b) are right
Question 13
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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?
Question 14
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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?
Question 15
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Which wave of globalization sparked that 10 percent of the world's population moved to new countries searching for better jobs?
Question 16
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Choose the correct answer. After World War II:
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Advanced countries made a commitment to higher barriers to trade and investment.
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Since 1950, average tariffs have increased significantly
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Advanced countries made a commitment to lower barriers to trade and investment.
Question 17
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Free trade refers to a situation where:
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Government does not attempt to restrict what its citizens can buy from another country or what they can sell to another country
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Government tend to intervene in international trade to protect the interests of politically important groups
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Both a) and b) are right
Question 18
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A tariff is an instrument of trade policy that consist in:
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A government payment to a domestic producer
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A tax levied on imports that effectively raises the cost of imported products relative to domestic products
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A direct restriction on the quantity of some good that may be imported into a country
Question 19
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A subsidy is an instrument of trade policy that consist in:
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A government payment to a domestic producer
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A tax levied on imports that effectively raises the cost of imported products relative to domestic products
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A direct restriction on the quantity of some good that may be imported into a country
Question 20
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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
Answer
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A government payment to a domestic producer
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A tax levied on imports that effectively raises the cost of imported products relative to domestic products
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A direct restriction on the quantity of some good that may be imported into a country
Question 21
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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
Question 22
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) Choose the wrong answer.
Answer
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Tariffs are unambiguously pro-producer and anti-consumer and reduce the overall efficiency of the world economy
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Subsidies help domestic producers compete against low-cost foreign imports
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Tariffs are unambiguously pro-consumer and anti-producer and increase the overall efficiency of the world economy
Question 23
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Choose the right answer. Ad valorem tariffs:
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Are levied as a fixed charge for each unit of a good imported
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Are levied as a proportion of the value of the imported good
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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
Question 24
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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.
Answer
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Demands that some specific fraction of a good be produced domestically
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Establishes bureaucratic rules that are designed to make it difficult for imports to enter a country
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Forbids selling goods in a foreign market below their cost of production.
Question 25
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Administrative trade polices is an instrument of trade policy that:
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Demands that some specific fraction of a good be produced domestically
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Establishes bureaucratic rules that are designed to make it difficult for imports to enter a country
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Forbids selling goods in a foreign market below their cost of production.
Question 26
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Which of these trade policies hurt consumers by denying access to possibly superior foreign products?
Question 27
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Which of these trade policies are designed to punish foreign firms in order to protect domestic producers from “unfair” foreign competition?
Question 28
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Choose the wrong answer. Local content requirements:
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Punish domestic producers and jobs, but consumers face lower prices
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Benefits domestic producers and jobs, but consumers face higher prices
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Requirement can be in physical terms or in value terms
Question 29
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Which type of arguments exit in order justify the government intervention in trade?
Question 30
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Choose the right answer. Political reasons argued in order to justify government intervention:
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are typically concerned with protecting the interests of certain groups within a nation (normally producers), often at the expense of other groups (normally consumers)
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are typically concerned with boosting the overall wealth of a nation (to the benefit of all, both producers and consumers)
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Both a) and b) are right.
Question 31
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Choose the right answer. Economic arguments for government intervention in international trade include:
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Protecting jobs, protecting industries deemed important for national security, retaliating to unfair foreign competition
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The infant industry argument and Strategic trade policy
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Both a) and b) are right
Question 32
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Choose the right answer. The infant industry argument suggests that:
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An industry should be protected until it can develop and be viable and competitive internationally.
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In cases where there may be important first mover advantages, governments can help firms from their countries attain these advantages
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Both a) and b) are right
Question 33
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Choose the right answer. The Strategic Trade Policy suggests that:
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In cases where there may be important first mover advantages, governments can help firms from their countries attain these advantages
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Governments can help firms overcome barriers to entry into industries where foreign firms have an initial advantage
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Both a) and b) are right
Question 34
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Choose the right answer. New trade theorists believe:
Question 35
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Choose the right answer. Classic trade theorists believe:
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Disagree with new trade theorists
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Agree partially with some new trade theorists
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While strategic trade theory is appealing in theory, it may not be workable in practice – they suggest a revised case for free trade
Question 36
Question
) 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
Answer
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Adam Smith
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David Ricardo
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Paul Krugman
Question 37
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Which was the philosophy that guided European thinking about international trade in the several centuries before Adam Smith?
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Mercantilism
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Imperialism
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Colonialism
Question 38
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Choose the right answer. Mercantilists viewed international trade:
Question 39
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Choose the right answer. A central belief of mercantilist was:
Question 40
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Choose the right answer. Based on mercantilist thinking, governments:
Question 41
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Choose the right answer. Neo-mercantilists believe that:
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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.
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Imports are good because they create jobs in the country, and exports are bad because they take jobs in more country.
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With the Economic Globalization international trade is not a zero-sum activity.
Question 42
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What are the key factors of influencing the development of trade from the point of Krugman model?
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Product differentiation
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Economies of Scale
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Global Economics
Question 43
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What is the countries trading goal based on, in order to maximize the Profit regarding to the Krugman model?
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Demand
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Economies of Scale
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Product differentiations
Question 44
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What is not an advantage of the Krugman model?
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Economies of scales are possible
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Comparative advantage for products
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No specification between countries
Question 45
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Who benefits the most from the Krugman model?
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Developed countries
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Multinational companies
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Developing countries
Question 46
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Which theory is giving the benefit of selling on the lowest costs?
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Krugman model
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Gravity model
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Product lifecycle
Question 47
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Which types of intra-industry trade theory are there?
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Horizontal and parallel
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Vertical and parallel
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Horizontal and vertical
Question 48
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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…
Answer
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Horizontal
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Vertical
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Parallel
Question 49
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) Why do countries implement the intra-industry trade theory?
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Lower transportation costs near borders
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Overlapping demand segments
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All of the above are correct
Question 50
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Which one of the answers is wrong? The product life cycle theory:
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Explains the expected life cycle of a typical product from design to obsolescence.
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Is divided into the phases of product introduction, product growth, maturity, and decline.
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Its goal is to minimize its value and profitability at each stage.
Question 51
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The product life cycle theory regarding the international trade theory consists in:
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Introduction, growth, maturity and decline
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Introduction, expansion, maturity and decline
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Introduction, development, maturity and decline