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CHAPTER 1—THE INTERNATIONAL ECONOMY AND GLOBALIZATION MULTIPLE CHOICE QUESTIONS 1. A primary reason why nations conduct international trade is because: a. Some nations prefer to produce one thing while others produce other things b. Resources are not equally distributed among all trading nations c. Trade enhances opportunities to accumulate profits d. Interest rates are not identical in all trading nations 2. International trade in goods and services is sometimes used as a substitute for all of the following except : a. International movements of capital b. International movements of labor c. Domestic production of the same goods and services d. Domestic production of different goods and services 3. If a nation has an open economy, it means that the nation: a. Allows private ownership of capital b. Has flexible exchange rates c. Has fixed exchange rates d. Conducts trade with other countries 4. International trade forces domestic firms to become more competitive in terms of: a. The introduction of new products
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This note was uploaded on 01/17/2012 for the course BUSINESS BU2005 taught by Professor Smith during the Three '10 term at Bond College.

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