Question 1

In India, several politicians are working very hard toward a system of full disclosure and openness that aims to avoid any semblance of corruption and cronyism. These efforts can be described as creating a system focused on _____.
A) politics
B) integrity
C) accountability
D) transparency
E) democracy

Accepted Answer

The sentence explicitly mentions "full disclosure and openness" as well as "avoiding corruption and cronyism," which are all related to transparency. Therefore, the answer choice that best fits is D) transparency.

Question 2

The International Center for the Settlement of Investment Disputes performs which of the following functions?
A) Provides long-term low-interest social sector and infrastructure loans to the poorest members utilizing foreign aid funds provided by rich nation members
B) Provide loans and take equity position in private companies of developing countries and works toward developing capital markets in those economies
C) Supports reconstruction and restructuring of member countries utilizing funds raised in international capital markets
D) Provides political risk coverage for private investments made in developing countries
E) Works on issues related to foreign investment disputes

Accepted Answer

The International Center for the Settlement of Investment Disputes (ICSID) is part of the World Bank Group and its primary function is to provide support and facilities for the resolution of investment disputes between foreign investors and their host countries. Therefore, the best choice is E, which highlights the center's work related to foreign investment disputes. Choices A, B, and C are not accurate because they describe functions of other organizations such as the World Bank or the International Monetary Fund. Choice D is partially correct, as ICSID can provide political risk coverage for investments made in member countries, but it is not its primary function.

Question 3

Which of the following is NOT true regarding property rights?
A) Protection of property rights has always been fundamental to market economies.
B) Studies have shown that countries that have successfully adapted to globalization guarantee property rights.
C) Less globalized countries offer less property rigiht protection.
D) In economies in Central Asia and parts of Africa and the Middle East, property rights are well defined.
E) Countries without property rights will most likely fall behind nations that guarantee property rights.

Accepted Answer

In economies in Central Asia and parts of Africa and the Middle East, property rights are often not well defined, which makes them vulnerable to corruption, abuse, and political instability.

Question 4

The Multilateral Investment Guarantee Agency performs which of the following functions?
A) Provides long-term low-interest social sector and infrastructure loans to the poorest members utilizing foreign aid funds provided by rich nation members
B) Provide loans and take equity position in private companies of developing countries and works toward developing capital markets in those economies
C) Supports reconstruction and restructuring of member countries utilizing funds raised in international capital markets
D) Provides political risk coverage for private investments made in developing countries
E) Works on issues related to foreign investment disputes

Accepted Answer

The Multilateral Investment Guarantee Agency provides political risk coverage for private investments made in developing countries.

Question 5

In Brazil, if there are government organizations that create strong incentives for private investment and operate under a system of checks and balances that function best in a democratic system of government, they could be classified as which of these?
A) Transparent organizations
B) Antitrust corporations
C) Adaptive institutions
D) Emerging markets
E) Capital markets

Accepted Answer

The described organizations are best classified as adaptive institutions because they adapt to create incentives for private investment and operate under a system of checks and balances. Additionally, the use of the word "democratic" implies that they operate within a democratic system of government, further fitting the definition of adaptive institutions.

Question 6

The most recent device(s)that enables greatest ease in portability and accessibility of information is (are)the _____.
A) magazines
B) newspapers
C) Internet
D) smart phones
E) computer

Accepted Answer

Smart phones are the most recent and portable device that offers easy accessibility to information. With internet connectivity and various applications, people can have access to news, entertainment, and various other forms of information on their smartphones while on the go. This makes the smartphones a popular choice for accessing information.

Question 7

India and Brazil have been moving towards more open trade and free market policies. These countries can be described as
A) emerging market economies.
B) open-door economies.
C) industrialized countries.
D) common market economies.
E) the World Bank countries.

Accepted Answer

India and Brazil are both considered emerging market economies, which means they are transitioning from developing nations to more advanced economies. Adopting more open trade and free market policies can be a part of this transition process. The other options are not as applicable as they do not necessarily reflect the current economic status and policies of India and Brazil.

Question 8

Trade without discrimination, freer trade, predictability, promotion of fair competition, and _____ are the five principles of the multilateral trading system.
A) integrated capital markets
B) encouragement of economic reform in developing countries
C) liberalization of the trading system
D) nontariff trade
E) international

Accepted Answer

The five principles of the multilateral trading system are trade without discrimination, freer trade, predictability, promotion of fair competition, and encouragement of economic reform in developing countries.

Question 9

The concept of curtailing agricultural subsidies in developed economies was incorporated into the ninth round to trade negotiations called the _____.
A) "Dallas Round"
B) "Toronoto Round"
C) "Sparta Round"
D) "Kabul Round"
E) "Doha Round"

Accepted Answer

The "Doha Round" of trade negotiations, launched in 2001 under the World Trade Organization (WTO), included discussions on reducing agricultural subsidies in developed countries to promote fairer global trade.

Question 10

Which of the following is NOT a main purpose of the IMF?
A) Provide a forum for cooperation on international monetary problems
B) Facilitate the sustainable growth of international trade
C) Promote exchange rate stability
D) Lend countries foreign exchange when needed
E) Provide long-term low-interest social sector and infrastructure loans

Accepted Answer

While the IMF does provide loans to countries, its main focus is on macroeconomic stability, exchange rate stability, and international cooperation. Providing long-term, low-interest loans for social sector and infrastructure projects is not a main purpose of the IMF, although it may provide such loans in certain circumstances.

Question 11

What was the initial primary role of the World Bank?
A) To aide in the reconstruction of Europe after World War II
B) To help eradictate communicable diseases
C) To try to avoid a repetition of the disastrous economic policies that had contributed to the Great Depression.
D) To deal primarily with tariff negotiations
E) To provide loans and take equity position in private companies

Accepted Answer

The World Bank was initially established to provide financial and technical assistance for the reconstruction of Europe after World War II.

Question 12

Trade expansion has been a leading factor in global integration, especially since the early _____.
A) 1650s
B) 1760s
C) 1890s
D) 1970s
E) 2000s

Accepted Answer

The 1970s marked a significant period of globalization and trade expansion, with advancements in technology, transportation, and international trade agreements facilitating increased global integration.

Question 13

The International Bank for Reconstruction and Development performs which of the following functions?
A) Provides long-term low-interest social sector and infrastructure loans to the poorest members utilizing foreign aid funds provided by rich nation members
B) Provide loans and take equity position in private companies of developing countries and works toward developing capital markets in theose economies
C) Supports reconstruction and restructuring of member countries utilizing funds raised in international capital markets
D) Provides political risk coverage for private investments made in developing countries
E) Works on issues related to foreign investment disputes

Accepted Answer

The International Bank for Reconstruction and Development supports reconstruction and restructuring of member countries utilizing funds raised in international capital markets. It focuses on providing long-term loans to member countries to promote economic development and alleviate poverty. Its primary goal is to reduce poverty in member countries and support sustainable economic growth.

Question 14

A sustainable decoupling process would eventually lead to _____.
A) a multi-polar world
B) globalization
C) outsourcing
D) importing
E) exporting

Accepted Answer

A sustainable decoupling process would lead to a multi-polar world, in which countries are less economically dependent on each other and have more independence in their decision-making. This can also promote a more sustainable and equitable distribution of resources and economic opportunities globally.

Question 15

In ABC country, a system of responsibility in which an authority, such as the government, is not answerable for its actions, it would be described as having the lack of _____.
A) banking system
B) integrity
C) accountability
D) transaction-based exporting
E) trustworthiness

Accepted Answer

The lack of accountability refers to a system where an authority, such as the government or any other organization, is not held responsible or answerable for its actions or decisions. This lack of accountability can be damaging to the system and its stakeholders, as there is no mechanism for transparency, oversight, and correction of any wrongdoings or mistakes. Option A, B, D, and E are unrelated to the given scenario.

Question 16

GATT refers to which of the following?
A) General Agreement of Tariffs and Trade
B) Great American Trade Tax
C) Gift of American Treaty Tips
D) General Articles on Tariffs and Trade
E) Great Articles on Tariffs and Trade

Accepted Answer

GATT stands for General Agreement on Tariffs and Trade, which was a multinational agreement aimed to reduce trade barriers and increase international trade.

Question 17

Which of the following is NOT an objective of the WTO?
A) Reviewing national trade policies
B) Acting as a form for trade negotiations
C) Helping eradictate communicable diseases
D) Settling trade disputes
E) Administering trade agreements

Accepted Answer

The World Trade Organization's objectives include reviewing national trade policies, acting as a form for trade negotiations, settling trade disputes, and administering trade agreements. However, helping eradicate communicable diseases is not one of its objectives.

Question 18

The rules, enforcement mechanisms, and organizations that support market transactions are referred to as _____.
A) industries
B) companies
C) businesses
D) corporations
E) institutions

Accepted Answer

The rules, enforcement mechanisms, and organizations that support market transactions are referred to as institutions. Industries, companies, businesses, and corporations all refer to specific entities within the market system, but they do not encompass the entire mechanism by which market transactions are supported.

Question 19

A world economy in which the engines of growth could comprise the United States, the European Union, China, India, Brazil, Russia, and South Africa rather than the United States alone can be described as a(an)__________.
A) interdependent world
B) industrialized world
C) globalized economy
D) multi-polar world
E) diverse world

Accepted Answer

A multi-polar world refers to a world in which power is much more widely distributed among a number of different economic and political entities. In this scenario, the engines of growth are not just limited to one dominant player (such as the United States), but rather are spread out among multiple countries (including China, India, Brazil, and others). This leads to a more diverse and balanced global economy, which is less vulnerable to shocks and disruptions that might arise if one country were to experience a major economic upheaval.

Question 20

According to the authors, which of the following is NOT true regarding globalization lessons for developing countries?
A) Import oriented nations must switch to concentrate on domestication.
B) Export oriented nations must diversify their market to include major emerging markets.
C) Countries emphasizing exports should base their strategy on their true competitive advantage.
D) For countries with large populations, the size of the domestic market remains most important.
E) Overindulgence can lead to disaster.

Accepted Answer

The authors actually state that "Import substitution has been largely discredited as a strategy for growth" and recommend that developing countries should focus on enhancing their competitiveness for exports instead of solely relying on domestic markets. Therefore, option A is incorrect as it contradicts the authors' view.

Quiz 1: The Rise of Globalization

In India, several politicians are working very hard toward a system of full disclosure and openness that aims to avoid any semblance of corruption and cronyism. These efforts can be described as creating a system focused on _____.

The International Center for the Settlement of Investment Disputes performs which of the following functions?

Which of the following is NOT true regarding property rights?

The Multilateral Investment Guarantee Agency performs which of the following functions?

In Brazil, if there are government organizations that create strong incentives for private investment and operate under a system of checks and balances that function best in a democratic system of government, they could be classified as which of these?

The most recent device(s) that enables greatest ease in portability and accessibility of information is (are) the _____.

India and Brazil have been moving towards more open trade and free market policies. These countries can be described as

Trade without discrimination, freer trade, predictability, promotion of fair competition, and _____ are the five principles of the multilateral trading system.

The concept of curtailing agricultural subsidies in developed economies was incorporated into the ninth round to trade negotiations called the _____.

Which of the following is NOT a main purpose of the IMF?

What was the initial primary role of the World Bank?

Trade expansion has been a leading factor in global integration, especially since the early _____.

The International Bank for Reconstruction and Development performs which of the following functions?

A sustainable decoupling process would eventually lead to _____.

In ABC country, a system of responsibility in which an authority, such as the government, is not answerable for its actions, it would be described as having the lack of _____.

GATT refers to which of the following?

Which of the following is NOT an objective of the WTO?

The rules, enforcement mechanisms, and organizations that support market transactions are referred to as _____.

A world economy in which the engines of growth could comprise the United States, the European Union, China, India, Brazil, Russia, and South Africa rather than the United States alone can be described as a(an) __________.

According to the authors, which of the following is NOT true regarding globalization lessons for developing countries?