Question 1

Manufactured items imported from developing countries equal more than 15 percent of the GDP of the industrially developed countries.

Accepted Answer

Manufactured imports from developing countries typically do not exceed 15% of the GDP of industrially developed countries, as their economies are large and diverse, with imports forming a smaller proportion of GDP.

Question 2

In 2008, exports accounted for _________of the Gross Domestic Product of the USA

Accepted Answer

In 2008, exports accounted for nearly 13 percent of the Gross Domestic Product (GDP) of the USA.

Question 3

Because it has the world's cheapest labor, sub-Saharan Africa has received the largest share of foreign investment in labor-intensive industries

Accepted Answer

Sub-Saharan Africa does not receive the largest share of foreign investment in labor-intensive industries; regions like Southeast Asia and China have historically attracted more due to better infrastructure and established manufacturing bases.

Question 4

The effects of globalization on domestic employment have significant parallels with the effects of

Accepted Answer

Technological advance, like globalization, can lead to shifts in employment patterns, such as job displacement in certain sectors and the creation of new opportunities in others.

Question 5

A fundamental economic justification for foreign trade is known as

Accepted Answer

Comparative advantage refers to the economic principle that countries should specialize in producing and exporting goods and services that they can produce more efficiently than other countries, and import goods and services that they can produce less efficiently.

Question 6

Which of the following statements is not true?

Accepted Answer

Globalization has had complex effects on jobs, creating opportunities in some sectors while causing job losses in others, but it is not accurate to say it has had a "catastrophic" impact on American jobs overall.

Question 7

Competition from low-wage countries has virtually wiped out some industries in the United States

Accepted Answer

Some industries in the United States, such as textiles and manufacturing, have been significantly impacted by competition from countries with lower labor costs, leading to a decline or relocation of these industries.

Question 8

NAFTA stands for:

Accepted Answer

NAFTA stands for the North American Free Trade Agreement, which was a treaty between Canada, Mexico, and the United States to eliminate trade barriers.

Question 9

One reason for setting up overseas subsidiaries is to avoid the consequences of fluctuations in currency exchange rates

Accepted Answer

Setting up overseas subsidiaries can help companies manage and mitigate the risks associated with currency exchange rate fluctuations by allowing them to conduct business in local currencies.

Question 10

An example of an NGO is the World Bank.

Accepted Answer

The answer of An example of an NGO is the...

Question 11

Intermodal transportation allows the transportation of containers on many different types of carriers.

Accepted Answer

Intermodal transportation involves using multiple modes of transportation (e.g., ships, trains, and trucks) to move containers efficiently from origin to destination.

Question 12

Many studies make it abundantly clear that illegal immigrants take more from all levels of government than they pay in taxes.

Accepted Answer

Studies on the economic impact of illegal immigrants show mixed results, with some indicating they contribute more in taxes than they receive in government services, while others suggest the opposite. The impact varies by region and the specific services considered.

Question 13

Globalization is synonymous with Westernization.

Accepted Answer

Globalization refers to the process of increased interconnectedness and interdependence among countries, while Westernization specifically refers to the adoption of Western culture and ideas. They are related but not synonymous.

Question 14

Due to continued high birth rates, the American population is collectively getting younger.

Accepted Answer

The American population is aging due to lower birth rates and increased life expectancy, despite some high birth rates in certain demographics.

Question 15

Maquiladoras mostly produce manufactured goods that bear the brand names of firms in their country of manufacture.

Accepted Answer

Maquiladoras are factories in Mexico run by foreign companies that import materials duty-free and export finished goods, often bearing the brand names of the foreign firms, not the country of manufacture.

Question 16

A 19^th-century thinker who formulated some early insights into the dynamics of globalization was

Accepted Answer

Karl Marx, a 19th-century thinker, provided early insights into globalization through his analysis of capitalism and its expansionary nature, which laid the groundwork for understanding global economic dynamics.

Question 17

An example of a multi-national corporation is

Accepted Answer

All the companies listed (Wal-Mart, The United Fruit Company, Microsoft, and The Hard Rock Café) operate in multiple countries, making them multi-national corporations.

Question 18

A key component of globalization is the rapid movement of information through electronic media.

Accepted Answer

The rapid movement of information through electronic media is a key component of globalization as it facilitates communication, trade, and cultural exchange across the world.

Question 19

. The U.S. used braceros for agricultural labor during the 1960s..

Accepted Answer

The Bracero Program, which allowed Mexican laborers to work temporarily in the U.S., continued until 1964, providing agricultural labor during the 1960s.

Question 20

The 27 European nations which have joined together for cooperation on a variety of economic fronts are collectively known as

Accepted Answer

The 27 European nations that have joined together for cooperation on various economic and political fronts are collectively known as the European Union (EU).

Quiz 6: Globalization