exam2-answers - University of Houston INTB 3353 Economics...

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University of Houston Fall 2008 INTB 3353: Economics of Globalization Professor Ruxandra Prodan 23202 Exam #2 - Answers Name:_________________________________________________________________ 1. Offshore Outsourcing is: a. relocation of an organizational function to a foreign country b. transfer of an organizational function to a third party c. transfer of an organizational function to a third party, when the party is located outside the country 2. According to article” French Riots - Are Labor Policies Part of the Problem?” which of the following aspects of French labor policy does not necessarily marginalize young, less qualified workers? a. Minimum wages b. Payroll taxes c. Firing restrictions d. Unionization 3. International trade allows countries to specialize in the production of goods and services in which they have an absolute advantage. This can lead to a. big countries exploiting small countries which lack these advantages. b. an increase in total global output. c. more efficient allocation of a country’s scarce resources d. both a) and b) e. both b) and c) 4. The Employment Protection Legislation (EPL): a. Reduces probability of unemployment (p) b. Increases the probability of finding a job(s) c. Reduces probability of finding a job (s) d. A and B e. A and C
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5. Which one of the following is not an objection to outsourcing? a. increased unemployment b. reduction in wages & benefits c. provides private corporations with a means to escape taxation d. increase in the incentives for raising productivity e. provides private corporations with a means to escape government regulation 6. When a nation requires fewer resources than another nation to produce a product, the nation is said to have a: a. Absolute advantage in the production of the product b. Comparative advantage in the production of the product c. Lower marginal rate of transformation for the product d. Lower opportunity cost of producing the product 7. As suggested by the Aplia article “Winners and Losers from Trade”, who would benefit the most if the WTO was abolished and rich countries did not have to eliminate their barriers to trade in textiles? a. Textile workers in Pakistan b. Consumers in the United States c. Textile workers in the United States 8. If a production possibilities curve is bowed out (i.e., concave) in appearance, production occurs under conditions of: a. Constant opportunity costs b. Increasing opportunity costs c. Decreasing opportunity costs d. Zero opportunity costs 9. The major US trading partners are: a. Canada, Mexico, Japan b. China, Mexico, UK c. Canada, Mexico, China d. Canada, Mexico, UK e. Canada, Mexico, France 10. The redistribution effect of an import tariff is the transfer of income from the domestic: a. Producers to domestic buyers of the good b. Buyers to domestic producers of the good c. Buyers to the domestic government d. Government to the domestic buyers
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11. Which of the following is not alleged to be a problem associated with free trade?
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This note was uploaded on 02/23/2010 for the course BUSINESS intb 3353 taught by Professor Prodon during the Spring '10 term at University of Houston.

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exam2-answers - University of Houston INTB 3353 Economics...

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