Question 1

What is "global capitalism"?

Accepted Answer

A)   Capitalism that exists in more than one country.
B)   Most countries are predominantly capitalist.
C)   A few capitalist countries dominate the world economy.
D)   Capitalism that is based primarily on international trade and investment.E) C) and D)
F) A) and B)

Question 2

A resident of Canada purchases 1,000 shares of stock in Dell Computers. This is an example of

Accepted Answer

A)   international trade.
B)   international investment.
C)   economic imperialism.
D)   international finance.E) C) and D)
F) A) and C) D

Question 3

A key indicator of global warming is the increase in greenhouse gases such as

Accepted Answer

A)   sodium chloride.
B)   carbon dioxide.
C)   helium.
D)   sulfuric acid.E) All of the above
F) A) and D)

Question 4

The world's richest 1% of households own ____________of the world's wealth.

Accepted Answer

A)   1%
B)   20%
C)   40%
D)   60%E) A) and C)
F) B) and C) C

Question 5

How does a recession in the United States affect the level of foreign investment undertaken by American businesses?

Accepted Answer

A)   Businesses tend to increase the level of foreign investment during a recession.
B)   Businesses tend to decrease the level of foreign investment during a recession.
C)   Businesses tend to maintain the same level of foreign investment over the business cycle.
D)   It is against the law businesses to engage in foreign investment during a recession.E) A) and C)
F) B) and D)

Question 6

The use of the internet is often cited as evidence of increased globalization. Approximately how many of the world's 6.6 billion people are internet users (as of 2005) ?

Accepted Answer

A)   3 billion
B)   1.5 billion
C)   500 million
D)   500 thousandE) A) and B)
F) A) and C)

Question 7

Conservatives point to the positive aspects of globalization including

Accepted Answer

A)   the increase in the growth rate of the GDP of the global economy since 1970.
B)   the increase in the growth rate of GDP per capita since 1970.
C)   the increase in the profit rate of the 500 largest transnational corporations since 1970.
D)   the increase in the growth rate of real global investment since 1970.E) All of the above
F) B) and D)

Question 8

The conservative position on the global movement of financial capital is that

Accepted Answer

A)   the rapid movement of financial capital into and out of a country can be destabilizing to the country's economy.
B)   the free movement of financial capital from one country to another will ensure that it will be put to the most productive use.
C)   the movement of financial capital out of the developed countries and into the developing countries will lead to greater inefficiency and lower productivity.
D)   all international movement of financial capital should be regulated by the International Monetary Fund.E) A) and B)
F) B) and D)

Question 9

What are the three mechanisms that transmit recessions and expansions from one country to another?

Accepted Answer

A)   Exports of goods, exports of services, and exports of currency.
B)   International trade, international investment, and international finance.
C)   Consumers, businesses, and governments.
D)   The United Nations, the World Bank, and the International Labor Organization.E) None of the above
F) B) and C)

Question 10

In general, what is the attitude of businesses toward foreign investments compared to domestic investment?

Accepted Answer

A)   Businesses are more cautious about making foreign investments.
B)   Businesses are more cautious about making domestic investment.
C)   Businesses are equally cautious about all investments.
D)   Businesses will engage either in foreign investment or domestic investment but not both.E) None of the above
F) A) and C)

Question 11

The poorest 50% of the world's population own ____________of the world's wealth.

Accepted Answer

A)   1%
B)   15%
C)   30%
D)   50%E) All of the above
F) A) and B)

Question 12

Assume Toyota builds a new plant in Mississippi to produce the Prius. This is an example of

Accepted Answer

A)   international trade.
B)   international investment.
C)   economic imperialism.
D)   international finance.E) All of the above
F) C) and D)

Question 13

The United States imports approximately $45 billion in automobiles from Japan. If there is a recession in the United States, we can expect

Accepted Answer

A)   that aggregate demand in Japan will increase.
B)   that aggregate demand in Japan will decrease.
C)   that aggregate demand in Japan will remain the same.
D)   that Japan will have no aggregate demand.E) A) and B)
F) A) and C)

Question 14

Free trade means

Accepted Answer

A)   all countries are permitted to engage in international trade.
B)   there are no goods that are prohibited from entering the country.
C)   there is no international trade embargo in place.
D)   there are no tariffs, quotas or other barriers to international trade.E) A) and B)
F) B) and C)

Question 15

The progressive position on the global movement of financial capital is that

Accepted Answer

A)   the rapid movement of financial capital into and out of a country can be destabilizing to the country's economy.
B)   the free movement of financial capital from one country to another will ensure that it will be put to the most productive use.
C)   the movement of financial capital out of the developed countries and into the developing countries will lead to greater inefficiency and lower productivity.
D)   all international movement of financial capital should be regulated by the International Monetary Fund.E) A) and C)
F) C) and D) A

Question 16

Over the past 30 years, globalization has led to

Accepted Answer

A)   strong economic growth in almost all countries.
B)   weak economic growth in almost all countries.
C)   negative economic growth in almost all countries.
D)   uneven economic growth with strong growth in some regions and weak growth in others.E) A) and B)
F) A) and C)

Question 17

The global integration of the world economy means that

Accepted Answer

A)   most industrial countries experience tend recessions at the same time.
B)   a recession in one industrialized country will be offset by a boom in another country.
C)   industrial countries are relatively immune from international financial instability.
D)   most industrial countries now use the same currency.E) All of the above
F) A) and B)

Question 18

The wealth of individuals in all countries has been estimated at

Accepted Answer

A)   $125 million
B)   $125 billion
C)   $125 trillion
D)   $125 quadrillionE) B) and C)
F) A) and B)

Question 19

If the United States is the most important market for Bolivian exports, then a recession in the United States is likely to

Accepted Answer

A)   increase demand for goods imported from Bolivia.
B)   lead to an economic expansion in Bolivia.
C)   lead to an economic downturn in Bolivia.
D)   have no effect on Bolivia's economy.E) None of the above
F) All of the above

Question 20

Progressives point to the negative aspects of globalization including

Accepted Answer

A)   the decrease in the growth rate of the GDP of the global economy since 1970.
B)   the decrease in the growth rate of GDP per capita since 1970.
C)   the increase in global inflation since 1970.
D)   the decrease in the volume of global trade since 1970.E) A) and B)
F) C) and D)

Exam 13: Globalization and the Spread of Instability

What is "global capitalism"?

Correct AnswerverifiedShow Answer

A resident of Canada purchases 1,000 shares of stock in Dell Computers. This is an example of

Correct AnswerverifiedD

A key indicator of global warming is the increase in greenhouse gases such as

Correct AnswerverifiedShow Answer

The world's richest 1% of households own ____________of the world's wealth.

Correct AnswerverifiedC

How does a recession in the United States affect the level of foreign investment undertaken by American businesses?

Correct AnswerverifiedShow Answer

The use of the internet is often cited as evidence of increased globalization. Approximately how many of the world's 6.6 billion people are internet users (as of 2005) ?

Correct AnswerverifiedShow Answer

Conservatives point to the positive aspects of globalization including

Correct AnswerverifiedShow Answer

The conservative position on the global movement of financial capital is that

Correct AnswerverifiedShow Answer

What are the three mechanisms that transmit recessions and expansions from one country to another?

Correct AnswerverifiedShow Answer

In general, what is the attitude of businesses toward foreign investments compared to domestic investment?

Correct AnswerverifiedShow Answer

The poorest 50% of the world's population own ____________of the world's wealth.

Correct AnswerverifiedShow Answer

Assume Toyota builds a new plant in Mississippi to produce the Prius. This is an example of

Correct AnswerverifiedShow Answer

The United States imports approximately $45 billion in automobiles from Japan. If there is a recession in the United States, we can expect

Correct AnswerverifiedShow Answer

Free trade means

Correct AnswerverifiedShow Answer

The progressive position on the global movement of financial capital is that

Correct AnswerverifiedA

Over the past 30 years, globalization has led to

Correct AnswerverifiedShow Answer

The global integration of the world economy means that

Correct AnswerverifiedShow Answer

The wealth of individuals in all countries has been estimated at

Correct AnswerverifiedShow Answer

If the United States is the most important market for Bolivian exports, then a recession in the United States is likely to

Correct AnswerverifiedShow Answer

Progressives point to the negative aspects of globalization including

Correct AnswerverifiedShow Answer

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