Question 1

In recent years, the rate of economic growth for both India and China has lagged well behind that of the United States.

Accepted Answer

This statement is false. In recent years, the rate of economic growth for both India and China has been higher than that of the United States.

Question 2

International trade can offer companies an invaluable source of new ideas.

Accepted Answer

International trade can expose companies to new cultures, technologies, and business practices, which can spark innovative ideas and approaches.

Question 3

One drawback of global trade is that it increases the risk to firms who must do business in many different countries.

Accepted Answer

False

Question 4

Companies engage in global trade because of the benefits such as better access to factors of production, reduced risk, and an inflow of new ideas.

Accepted Answer

Companies engage in global trade because it provides them with benefits such as better access to factors of production, reduced risks, and new ideas from different cultures and markets.

Question 5

One of the factors limiting the economic development of nations like China and India is that they are tied down by old technologies like conventional landline telephone networks.

Accepted Answer

This statement is false. While it is true that conventional landline telephone networks may not be as advanced as newer technologies like IP telephone systems or mobile phones, they are hardly a major factor limiting the economic development of nations like China and India. There are many other more significant factors at play, such as lack of infrastructure, limited access to capital and resources, and political instability.

Question 6

Businesses that are actively involved in foreign markets often discover leading­edge trends that can give them a jump on the competition in other markets around the world.

Accepted Answer

Active involvement in foreign markets can provide businesses with insights into changing consumer preferences, emerging technologies, and industry innovations, which can be leveraged to gain a competitive advantage in other markets around the world.

Question 7

The United States is known to offer plentiful capital, which is less available in other parts of the world.

Accepted Answer

The United States is known for its abundant capital, which is less widely available in other parts of the world due to factors such as political instability, limited access to credit, and underdeveloped financial systems. This abundance of capital has contributed to the growth of many industries and has made the US a hub for innovation and entrepreneurship.

Question 8

Compared to the U.S., the nations of China and India have larger populations but lower rates of economic growth.

Accepted Answer

This statement is false. Both China and India have experienced higher rates of economic growth than the U.S. in recent years, although their populations are larger.

Question 9

Global trade increases dependence on one economy, increasing the economic risk for multinational firms.

Accepted Answer

Global trade typically diversifies economic risk for multinational firms by spreading their operations and investments across multiple economies, rather than concentrating dependence on a single one.

Question 10

Access to technology has led individual economies around the world to become more interdependent than ever before.

Accepted Answer

Access to technology has made it easier for countries to communicate and do business with each other, leading to greater interdependence of economies around the world.

Question 11

Despite their huge populations, China and India offer very limited market opportunities to foreign producers, because they refuse to open their economies to foreign investment.

Accepted Answer

While there are certain restrictions and regulations on foreign investment in China and India, the two countries have opened up their economies significantly over the past few decades and offer significant market opportunities to foreign producers.

Question 12

International trade helps even out some of the resource imbalances among nations.

Accepted Answer

International trade allows countries to specialize in producing goods and services that they have a comparative advantage in, which means they can produce them more efficiently than other countries. This helps to even out resource imbalances among nations, as each country can obtain the goods and services they need from other countries that produce them more efficiently.

Question 13

One major risk of engaging in global trade is that as national economies continue to integrate, an economic meltdown in one part of the world can have far­reaching impact.

Accepted Answer

This statement is true. The interconnectedness of global trade means that a crisis, such as a financial or economic downturn, in one country can have significant consequences for other countries and even the global economy as a whole. Examples of this include the 2008 global financial crisis, which began with the collapse of the US housing market but had ripple effects around the world, and the ongoing COVID-19 pandemic, which has disrupted supply chains and caused economic turmoil globally.

Question 14

The GDP rate has been shown to grow in relation to an increase in cell phone ownership.

Accepted Answer

Studies have shown that there is a correlation between cell phone usage and economic growth, with countries experiencing higher GDP rates as mobile phone ownership increases.

Question 15

As access to technology rises and barriers to trade fall, individual economies around the world have become more independent than ever before.

Accepted Answer

As access to technology and trade increases, individual economies around the world have become more interconnected and interdependent, rather than independent.

Question 16

International trade helps to ease some of the resource imbalance among nations around the world.

Accepted Answer

International trade allows countries to exchange resources and goods that they may not have in abundance domestically. This can help to address resource imbalances among nations and contribute to a more efficient global economy.

Question 17

The markets in China and India are attractive to American firms due to both the huge populations of these nations and because both nations are experiencing rapid economic growth.

Accepted Answer

Both China and India have large populations and are experiencing significant economic growth, making them attractive markets for American firms.

Question 18

International trade stimulates competition as it encourages innovation and creativity for new products.

Accepted Answer

International trade allows businesses to access new markets and customers, leading to greater competition. This competition encourages companies to continuously innovate and develop new products as they strive to stay ahead of their rivals, ultimately benefiting consumers through better products and lower prices.

Question 19

When resources are limited, producing more of one good means producing less of something else. The opportunity cost of producing more of a good is the value given up by not producing the second­best choice.

Accepted Answer

This statement accurately describes the concept of opportunity cost in economics. Resources are limited and every choice has an opportunity cost, meaning that producing more of one good necessarily means producing less of something else. The opportunity cost is the value of the next best alternative that is forgone.

Question 20

The United States's economy lags behind other highly­populated countries, because a lower population in the U.S. puts a drag on economic growth.

Accepted Answer

The United States has the largest economy in the world, despite not having the highest population. Other factors such as technological innovation, natural resources, and political stability contribute to its economic strength.

Quiz 3: The World Marketplace: Business Without Borders

In recent years, the rate of economic growth for both India and China has lagged well behind that of the United States.

International trade can offer companies an invaluable source of new ideas.

One drawback of global trade is that it increases the risk to firms who must do business in many different countries.

Companies engage in global trade because of the benefits such as better access to factors of production, reduced risk, and an inflow of new ideas.

One of the factors limiting the economic development of nations like China and India is that they are tied down by old technologies like conventional landline telephone networks.

Businesses that are actively involved in foreign markets often discover leadingedge trends that can give them a jump on the competition in other markets around the world.

The United States is known to offer plentiful capital, which is less available in other parts of the world.

Compared to the U.S., the nations of China and India have larger populations but lower rates of economic growth.

Global trade increases dependence on one economy, increasing the economic risk for multinational firms.

Access to technology has led individual economies around the world to become more interdependent than ever before.

Despite their huge populations, China and India offer very limited market opportunities to foreign producers, because they refuse to open their economies to foreign investment.

International trade helps even out some of the resource imbalances among nations.

One major risk of engaging in global trade is that as national economies continue to integrate, an economic meltdown in one part of the world can have farreaching impact.

The GDP rate has been shown to grow in relation to an increase in cell phone ownership.

As access to technology rises and barriers to trade fall, individual economies around the world have become more independent than ever before.

International trade helps to ease some of the resource imbalance among nations around the world.

The markets in China and India are attractive to American firms due to both the huge populations of these nations and because both nations are experiencing rapid economic growth.

International trade stimulates competition as it encourages innovation and creativity for new products.

When resources are limited, producing more of one good means producing less of something else. The opportunity cost of producing more of a good is the value given up by not producing the secondbest choice.

The United States's economy lags behind other highlypopulated countries, because a lower population in the U.S. puts a drag on economic growth.

Quiz 3: The World Marketplace: Business Without Borders

In recent years, the rate of economic growth for both India and China has lagged well behind that of the United States.

International trade can offer companies an invaluable source of new ideas.

One drawback of global trade is that it increases the risk to firms who must do business in many different countries.

Companies engage in global trade because of the benefits such as better access to factors of production, reduced risk, and an inflow of new ideas.

One of the factors limiting the economic development of nations like China and India is that they are tied down by old technologies like conventional landline telephone networks.

Businesses that are actively involved in foreign markets often discover leading­edge trends that can give them a jump on the competition in other markets around the world.

The United States is known to offer plentiful capital, which is less available in other parts of the world.

Compared to the U.S., the nations of China and India have larger populations but lower rates of economic growth.

Global trade increases dependence on one economy, increasing the economic risk for multinational firms.

Access to technology has led individual economies around the world to become more interdependent than ever before.

Despite their huge populations, China and India offer very limited market opportunities to foreign producers, because they refuse to open their economies to foreign investment.

International trade helps even out some of the resource imbalances among nations.

One major risk of engaging in global trade is that as national economies continue to integrate, an economic meltdown in one part of the world can have far­reaching impact.

The GDP rate has been shown to grow in relation to an increase in cell phone ownership.

As access to technology rises and barriers to trade fall, individual economies around the world have become more independent than ever before.

International trade helps to ease some of the resource imbalance among nations around the world.

The markets in China and India are attractive to American firms due to both the huge populations of these nations and because both nations are experiencing rapid economic growth.

International trade stimulates competition as it encourages innovation and creativity for new products.

When resources are limited, producing more of one good means producing less of something else. The opportunity cost of producing more of a good is the value given up by not producing the second­best choice.

The United States's economy lags behind other highly­populated countries, because a lower population in the U.S. puts a drag on economic growth.

Businesses that are actively involved in foreign markets often discover leadingedge trends that can give them a jump on the competition in other markets around the world.

One major risk of engaging in global trade is that as national economies continue to integrate, an economic meltdown in one part of the world can have farreaching impact.

When resources are limited, producing more of one good means producing less of something else. The opportunity cost of producing more of a good is the value given up by not producing the secondbest choice.

The United States's economy lags behind other highlypopulated countries, because a lower population in the U.S. puts a drag on economic growth.