Question 1

What is "global capitalism"?

Accepted Answer

B

Question 2

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

Accepted Answer

The three mechanisms that transmit recessions and expansions from one country to another are international trade, international investment, and international finance. These mechanisms can cause a ripple effect that can impact multiple countries and their economies. For example, a recession in one country can lead to decreased demand for imports from other countries, which can result in decreased exports and economic activity in those countries. Similarly, a surge in investment or finance can lead to increased economic activity and growth in multiple countries.

Question 3

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 recession in the United States is likely to decrease demand for imports, including Bolivian exports. This would lead to a decrease in demand for Bolivian goods and likely result in an economic downturn in Bolivia.

Question 4

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

Accepted Answer

Building a new plant in another country is an example of international investment, as the company is investing in the production capacity of that country. It is not international trade because the cars produced are not being shipped across borders for sale, and it is not economic imperialism because Toyota is not taking control of the country's economy. Finally, it is not related to international finance because it does not involve financial transactions across borders.

Question 5

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

Accepted Answer

The answer of A resident of Canada purchases 1,000 shares...

Question 6

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

Accepted Answer

During a recession, businesses tend to decrease the level of foreign investment due to the uncertain economic conditions and lack of available funds. As a result, they focus on stabilizing their domestic operations.

Question 7

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

Accepted Answer

Generally, businesses are more cautious about making foreign investments due to the increased risk involved in investing in unfamiliar markets, as well as factors such as legal and regulatory differences, cultural barriers, and exchange rate fluctuations. Domestic investment is seen as less risky and more predictable, as businesses are familiar with the market conditions and the business environment in their own country.

Question 8

A resident of Dubai buys $1,000,000 in U.S. government bonds. This is an example of

Accepted Answer

The answer of A resident of Dubai buys $1,000,000 in...

Question 9

The global integration of the world economy means that

Accepted Answer

The global integration of the world economy means that there is greater interdependence and interconnectedness among countries, particularly in the realm of trade and finance. This has led to an increase in synchronized business cycles, meaning that when one country experiences a recession, other industrialized countries are likely to experience a downturn as well.

Question 10

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

During a recession, consumers tend to cut back on their spending and purchase fewer goods, including automobiles. Therefore, U.S. imports of automobiles from Japan are likely to decrease.

Question 11

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

If there is a recession in the United States, the demand for automobiles will decrease, which will negatively affect the Japanese auto industry since they export a significant portion of their vehicles to the United States. As a result, the aggregate demand in Japan is likely to decrease.

Question 12

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

Accepted Answer

The conservative position typically emphasizes the benefits of free markets and the efficient allocation of resources, arguing that allowing financial capital to move freely across borders ensures it is used where it can be most productive.

Question 13

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

Accepted Answer

The progressive position on the global movement of financial capital is that the rapid and unregulated movement of financial capital can destabilize a country's economy. This can lead to currency and financial crises, devaluation of currencies, and unemployment. Therefore, some level of regulation or control is necessary to ensure stability and prevent crises.

Question 14

Conservatives point to the positive aspects of globalization including

Accepted Answer

Globalization has contributed to the increase in the growth rate of the GDP of the global economy since 1970, as it has facilitated trade, investment, and economic integration across countries.

Question 15

Progressives point to the negative aspects of globalization including

Accepted Answer

Progressives often highlight the negative aspects of globalization, such as the decrease in the growth rate of GDP per capita, which can indicate that the benefits of globalization are not evenly distributed among individuals.

Question 16

The wealth of individuals in all countries has been estimated at

Accepted Answer

According to estimates from Credit Suisse, the total global wealth of individuals was approximately $125 trillion in 2019. Therefore, choice C is the correct answer.

Question 17

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

Accepted Answer

The world's richest 1% of households own approximately 40% of the world's wealth. This statistic highlights the significant wealth inequality that exists globally.

Question 18

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

Accepted Answer

The poorest 50% of the world's population own only 1% of the world's wealth, making choice A the correct answer. This staggering wealth inequality highlights the need for increased efforts towards reducing poverty and promoting economic equality.

Question 19

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

Accepted Answer

Carbon dioxide is a significant greenhouse gas that traps heat in the atmosphere, leading to global warming. Sodium chloride and helium are not greenhouse gases, and sulfuric acid is a secondary pollutant formed from other emissions.

Question 20

The term, "outsourcing" means

Accepted Answer

Outsourcing refers to the practice of turning over a part of a production process to an outside supplier, often located in another country. It can be done to reduce costs, improve efficiency, or gain access to specialized skills and technology.

Quiz 13: Globalization and the Spread of Instability

What is "global capitalism"?

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

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

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

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

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

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

A resident of Dubai buys $1,000,000 in U.S. government bonds. This is an example of

The global integration of the world economy means that

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

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

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

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

Conservatives point to the positive aspects of globalization including

Progressives point to the negative aspects of globalization including

The wealth of individuals in all countries has been estimated at

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

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

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

The term, "outsourcing" means