Global Economy Test 100%

A country that has multinational corporations is most likely to be a. a developed economy. b. a transitioning economy. c. a developing economy. d. a control economy.

Which statement accurately describes a developing country? a. The country's population has a high growth rate. b. The country has a high standard of living. c. The country's population has a high life expectancy. d. The country has a high GDP per capita.

Which type of trade barrier is explicitly used for political purposes? a. standards b. embargoes c. quotas d. tariffs

The United States is said to have an absolute advantage in producing food compared with Japan. What does that mean? a. It must import most of its food from Japan. b. It produces food more efficiently than Japan. c. It produces food at a higher cost than Japan. d. It must export most of its food to Japan

What term describes a ban or restriction on trade with another country?

The Middle East is best associated with which internationally traded product? a. electronics b. bananas c. manufactured goods d. oil

Read the introduction to an informative essay about globalization in China. Globalization is connecting our world through faster transportation and communication. The world's economies are becoming increasingly connected. However, this growth comes with consequences for many developing economies. Globalization has led to rising levels of pollution in China's cities due to increased manufacturing and population growth. If the introduction continued, which topic would most likely be discussed? a. how pollution affects Chinese cities b. how globalization affects transportation c. how pollution affects developing economies d. how globalization helps world economies

Which group directly benefits from subsidies? a. exporters b. sellers c. producers d. importers

What role does competition play in international trade? a. It results in higher prices. b. It discourages imports. c. It drives down prices for consumers. d. It does away with the need for investment.

Tariffs and subsidies are both types of a. restrictions. b. economic benefits. c. economic penalties. d. incentives.

How has globalization made countries more interdependent? Check all that apply. a. Countries now rely on one another for vital resources. b. Countries now rely on each other for new industries. c. Countries now rely on one another for chances to import. d. Countries now rely on one another for an employment base. e. Countries rely on each other for cheaper products. f. Countries now rely on one another for chances to export.

Read the sentence from an informative essay about globalization in China. Pollution levels in Beijing are improving in some ways thanks to government programs. What would most improve the sentence? a. adding facts and evidence b. removing "in Beijing" c. adding clearer language d. removing "in some ways"

An introduction to an informative essay about globalization in China should include a. a brief background about globalization. b. a few sources related to globalization. c. main subtopics related to globalization. d. supporting evidence about globalization.

What is the government's aim in setting quotas? a. to create more competition in the market b. to increase sales of domestic goods c. to keep tariffs high d. to limit export of domestic goods

What are the most likely reasons a US corporation would open a factory in China? Check all that apply. a. to take advantage of affordable land prices b. to take advantage of abundant resources c. to take advantage of lower labor costs d. to take advantage of favorable tax laws e. to take advantage of employment opportunities

As of 2013, which of these countries had the highest GDP per capita? a. Uganda b. the United States c. Switzerland d. Brazil

The graph shows China's workforce from 2000 to 2019. Based on this graph, globalization has affected China's workforce by creating a shift toward specialization in a. agriculture and away from services. b. services and away from agriculture. c. industry and away from services. d. agriculture, services, and industry.

Why do countries provide financial incentives? a. Financial incentives act as trade barriers. b. Financial incentives limit imports. c. Financial incentives set standards. d. Financial incentives restrict all trade.

How do quotas help domestic producers? a. Quotas facilitate increased exports of domestic goods. b. Quotas lower the cost of domestic goods. c. Quotas limit the number of producers that compete in a sector. d. Quotas facilitate the sale of more domestic goods.

The body paragraphs in an informative essay should include a. clear examples. b. a thesis statement. c. restated evidence. d. a clear direction.

Which best describes why countries establish limits on trade? Check all that apply. a. to force domestic industries to compete b. to restrict foreign influence in a sector c. to restrict importation of a foreign good d. to raise the price of foreign goods e. to punish other countries

Read the sentence from an informative essay about globalization in China. As urban populations continue to grow, so do the number of citizens who burn coal for fuel. Which detail would provide factual support for this sentence? a. data about pollution caused by motorized vehicles b. data about China's economy in the global marketplace c. data about population growth in China's largest city d. data about the kinds of pollution caused by burning coal

Read this excerpt describing the mission of the World Bank. The World Bank is a vital source of financial and technical assistance to developing countries around the world. It is not a bank in the common sense. Instead, it plays a different but supportive role in its mission of global poverty reduction and the improvement of living standards. It provides low-interest loans, interest-free credit, and grants to developing countries for education, health, infrastructure, communications, and many other purposes. According to this excerpt, what is one major way in which the World Bank differs from a regular bank? a. The World Bank is a source of financial assistance. b. The World Bank aims to improve living standards. c. The World Bank provides low-interest loans and credit. d. The World Bank serves people of different income levels.

Which situation is the best example of opportunity cost? a. A country chooses to produce bananas instead of wheat. b. A country chooses to invest in manufacturing and agriculture. c. A country chooses to specialize in producing paper products. d. A country chooses to export all of its products.

How might foreign investment be problematic for a transitioning economy? a. Foreign investment can temporarily slow economic growth. b. It may be difficult to adjust to another nation's influence. c. A foreign government may seize control of the country. d. The transitioning economy must adopt a foreign currency.