Exam: 500662RR - The Nature of International Business and Cooperation among N
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Questions 1 to 20: Select the best answer to each question. Note that a question and its answers may be split across a page break, so be sure that you have seen the entire question and all the answers before choosing an answer.
1. Which of the following is not one of the primary criticisms of globalization?
A. It's contributed to a decline in environmental and health conditions.
B. It's had deleterious effects on labor and labor standards.
C. It's increased the number of children in the work force.
D. It's produced uneven results across nations and peoples.
2. Decision making in the international environment is _______ in a purely domestic environment.
A. about the same as
B. less complex than
C. more complex than
D. less demanding than
3. The IMF established the _______ as the principal reserve asset in the international monetary system.
A. gold standard
B. BOP account
C. capital account
D. special drawing right
4. In 2010, only 23 nations had GNIs greater than
A. Walmart's total annual sales.
B. the sum of the combined sales of Ford and General Electric.
C. the total sales of Exxon Mobil and Citigroup.
D. the sum of the GNIs of Japan, Germany, and France.
5. The main drivers of globalization depend on
A. the foreign environment.
B. domestic growth.
D. cultural differences.
6. The United Nations organ involved in trade development, education, and health issues is the
B. Security Council.
C. General Assembly.
D. Economic and Social Council.
7. Mercantilists believed that nations should
A. lower import duties to establish a level playing field.
B. produce goods for which there's a comparative advantage.
C. allow an export surplus so they can accumulate gold.
D. import goods to raise the standard of living.
8. What is an economy of scale?
A. As a plant gets larger, the average cost of producing a unit of output decreases.
B. The price of scales exceeds the cost of producing them.
C. As a plant gets larger, the average cost of producing a unit of output increases.
D. The price of scales is lower than the cost of producing them.
9. _______ can be divided into portfolio and direct investment.
B. Exchange rate investment
C. Domestic investment
D. Foreign investment
10. An evaluation of a country's economic and political risks made by a bank or potential investor is called a/an
B. international credit score.
C. stability appraisal.
D. country risk assessment.
11. _______ is an agreement among the countries that make up North America.
12. Treasury and Central Bank representatives met in _______ at the end of World War II and established the IMF, the World Bank, and the gold exchange standard.
B. Bretton Woods
13. The _______ has had a central role as a main central reserve asset of many countries, as a vehicle
currency, and as an intervention currency.
A. British pound
D. U.S. dollar
14. Defining a standard unit of currency by its equivalent in gold is called
B. the price specie flow.
C. par value.
D. the gold standard.
15. Inflation is generally measured by calculating the changes in
A. exchange prices.
B. interest rates.
C. the balance of payments of 10 nations.
D. the prices of a variety of goods and services.
16. According to its advocates, one of the advantages of the gold standard is that it provides
A. monetary security.
17. An explanation of how a product begins as a country's export and later becomes an import is the theory of
A. supply and demand.
B. international product life cycles.
C. directional trade.
D. unfair retaliation.
18. An international business manager who bases decisions solely on his or her own experience or preference is using
A. controllable forces.
B. the self-reference criterion.
C. domestic standards.
D. internalization theory.
19. When market demand and supply regulate the exchange rate with intervention designed to moderate the rate of change, it's called a/an
A. fixed peg.
B. market method.
C. crawling peg.
End of exam
D. independent float.
20. The economic cooperation of the EU is most accurately described as a
A. complete economic integration.
B. free trade area.
C. common market.
D. customs union
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