Question 1

When firms from one country make investments in another,it is known as __________.
A)direct foreign investment (DFI)
B)direct licensing (DL)
C)foreign direct investment (FDI)
D)investment transfer authorization (ITA)

Accepted Answer

Foreign direct investment (FDI) refers to the investment made by a firm from one country into another country. This investment can take the form of building a new facility, acquiring an existing business, or increasing ownership in an existing business. DFI and ITA are not commonly used terms in the context of international business, and direct licensing (DL) refers to a different type of investment where a firm allows another company to use its intellectual property in exchange for royalties.

Question 2

In the nineteenth century,which group represented a reliable source of demand for consumption of goods?
A)politicians
B)farmers
C)city residents
D)new immigrants

Accepted Answer

City residents represented a reliable source of demand for consumption of goods in the nineteenth century. With the rise of industrialization and urbanization, people in cities had greater access to goods and services, and their growing populations led to a larger overall demand for consumer goods. Politicians, farmers, and new immigrants did not necessarily represent as consistent or significant a market for consumption as city residents did.

Question 3

Which of the following technologies is recognized as the primary engine behind the communications revolution of the nineteenth century?
A)the telephone
B)the telegraph
C)radio
D)trans-Atlantic mail

Accepted Answer

The telegraph was the primary engine behind the communications revolution of the nineteenth century as it allowed for the transmission of messages over long distances in a matter of seconds. It transformed communication, commerce, and society by enabling real-time communication across large distances, making it easier to conduct business, coordinate military operations, and stay connected with loved ones. While other technologies like the telephone and radio were also important innovations, they did not have the same transformative impact on society as the telegraph.

Question 4

Before __________,economic production and consumption had to be largely local.
A)price convergence
B)the spread of international trade
C)foreign investment
D)the advent of the railway

Accepted Answer

Before the advent of the railway, transportation of goods was slow, risky and expensive, which made economic production and consumption largely local.

Question 5

Prior to the rise of capitalism,what was the traditional means of survival among peasants?
A)selling produced goods at local markets
B)working for wages in rural communities
C)working their own land with their own labour
D)leasing their own land for agricultural production

Accepted Answer

Prior to the rise of capitalism, the traditional means of survival among peasants was to work their own land with their own labor. This meant that they would cultivate crops and raise livestock to meet their basic needs and the surplus could be sold or traded for other goods. It was a self-sufficient model of subsistence agriculture that was prevalent in pre-industrial societies.

Question 6

The ebb and flow of globalization since 1900 has been governed mainly by __________ factors.
A)economic
B)political
C)social
D)technological

Accepted Answer

The answer of The ebb and flow of globalization since...

Question 7

Consider the course of globalization from the nineteenth century to today.After a period of increasing globalization that began in the nineteenth century,when did the process of deglobalization start?
A)after World War I
B)during the Great Depression
C)at the start of World War II
D)after World War II

Accepted Answer

The process of deglobalization started after World War I, marked by a significant reduction in global trade and investment flows, partly due to the economic policies adopted by countries in response to the war's aftermath.

Question 8

A tariff __________ the price of goods.
A)raises
B)lowers
C)destabilizes
D)equalizes

Accepted Answer

A tariff is a tax imposed on imported goods, which increases the cost of production and importation. As a result, this increase in cost is passed on to the consumer by raising the price of the goods.

Question 9

_____________ is the term for the price of a good being sold in different places tending toward the same level.
A)Price convergence
B)Factors of production
C)Foreign investment
D)Capitalist economy

Accepted Answer

Price convergence refers to the tendency of the price of a good being sold in different places to converge or become similar. This can occur due to various factors such as competition and market forces. The other options do not accurately describe this concept.

Question 10

After the Great Depression,what was the most important factor that worked against the resumption of globalized economic integration?
A)continued instability in Europe
B)devalued American currency
C)government control of national economies
D)the spread of communism

Accepted Answer

After the Great Depression, governments became increasingly involved in the control of national economies, implementing protectionist policies and tariffs, which hindered the resumption of globalized economic integration. This was known as the "era of statism" and it lasted until the 1980s.

Question 11

Which two instruments of economic policy helped states gain more control over the flow of economic activity in the period of deglobalization that followed the Great Depression?
A)capital controls and currency devaluation
B)currency devaluation and import quotas
C)tariffs and capital controls
D)tariffs and capital investments

Accepted Answer

Tariffs and capital controls were the two instruments of economic policy that helped states gain more control over the flow of economic activity in the period of deglobalization that followed the Great Depression. Tariffs were used to protect domestic industries from foreign competition, while capital controls were used to regulate the inflow and outflow of foreign investment. Currency devaluation and import quotas were also used, but they were not as effective in providing control over economic activity. Capital investments were not an instrument of economic policy used to gain more control over economic activity.

Question 12

Which two modes of transportation around the middle of the nineteenth century were considered revolutionary?
A)steamship and automobiles
B)steamship and railway
C)railway and roads
D)railway and subway

Accepted Answer

Steamships and railways were considered revolutionary modes of transportation around the middle of the nineteenth century as they allowed for faster and more efficient movement of people and goods. Automobiles did not become widely available until the early twentieth century, while roads and subways were not yet prominent modes of transportation during this time period.

Question 13

An economic system in which the place for market-produced goods is limited is __________.
A)anticapitalist
B)metacapitalist
C)precapitalist
D)protocapitalist

Accepted Answer

A precapitalist economic system refers to the time period before capitalism became the dominant economic system. During this period, the economy was typically based on subsistence agriculture and trade, and the production of goods for markets was limited. Therefore, a precapitalist system would have limited space for market-produced goods. The other choices (anticapitalist, metacapitalist, protocapitalist) refer to either systems that reject capitalism or systems that are in the process of becoming capitalist, and do not necessarily imply limited space for market-produced goods.

Question 14

When a government makes it harder for an investor who,seeking diversification,wishes to move money offshore,it is exercising __________.
A)capital accumulation
B)capital control
C)currency devaluation
D)currency exchange

Accepted Answer

When a government makes it harder for an investor to move money offshore for diversification, it is exercising capital control. Capital control refers to the restrictions imposed by governments on the flow of foreign capital in and out of a country to manipulate the nation's economy. It is meant to prevent currency speculation, limit capital flight, and support the domestic economy.

Question 15

__________ is a commonly used measure of global economic integration.
A)Volume of trade
B)Gross domestic product (GDP)
C)Trade as a proportion of gross domestic product (GDP)
D)Gross domestic product (GDP)as a proportion of trade

Accepted Answer

Trade as a proportion of gross domestic product (GDP) is a commonly used measure of global economic integration as it indicates the extent to which a country is participating in international trade and how much of its economy is dependent on trade. A high proportion of trade to GDP suggests greater economic openness and connectivity, while a low proportion indicates a more closed or isolated economy. This measure is also used in conjunction with other indicators to assess the impact of trade on economic growth, income distribution, and overall development.

Question 16

What two things had to occur before globalization could really take off in the nineteenth century?
A)a change in transportation and communication
B)a change in infrastructure and a transformation of economic systems
C)an increase in the pool of labour and rising levels of education
D)accumulated capital and price stability

Accepted Answer

The answer of What two things had to occur before...

Question 17

Since the 1970s,governments across the world have enacted which type of economic policy?
A)industry-protective policies
B)labour-supportive policies
C)market-based policies
D)risk-averse policies

Accepted Answer

Since the 1970s, governments across the world have enacted market-based policies, which include deregulation, privatization, and liberalization of trade and investment. These policies aim to promote economic growth, increase efficiency, and reduce government intervention in the economy.

Question 18

Which of the following features of the capitalist system distinguishes it from other systems?
A)rising prices
B)market independence
C)market dependence
D)expanding transportation infrastructure

Accepted Answer

Market dependence is a distinguishing feature of the capitalist system, where economic activities and the allocation of resources are primarily determined by the forces of supply and demand in the market, rather than by central planning or tradition.

Question 19

Gross domestic product (GDP)is equal to the value of __________.
A)the consumer price index
B)all exports sold regionally within a defined period
C)all imports sold domestically within a defined period
D)all goods and services sold within a defined period

Accepted Answer

GDP is the value of all goods and services produced within a country's borders over a specific time period (usually a year). Therefore, option D is the most appropriate answer. The other choices are not related to GDP.

Question 20

In the 1870s,what group of indicators signalled a turning point in global economic integration?
A)the degree of trade and the flow of investment
B)the degree of trade and the convergence of international prices
C)the degree of trade,the flow of investment,and the convergence of international prices
D)the convergence of international prices and the convergence of international wage rates

Accepted Answer

The 1870s marked a turning point in global economic integration due to increased trade, investment flows, and the convergence of international prices, indicating a more interconnected global economy.

Quiz 20: Globalization

When firms from one country make investments in another,it is known as __________.

In the nineteenth century,which group represented a reliable source of demand for consumption of goods?

Which of the following technologies is recognized as the primary engine behind the communications revolution of the nineteenth century?

Before __________,economic production and consumption had to be largely local.

Prior to the rise of capitalism,what was the traditional means of survival among peasants?

The ebb and flow of globalization since 1900 has been governed mainly by __________ factors.

Consider the course of globalization from the nineteenth century to today.After a period of increasing globalization that began in the nineteenth century,when did the process of deglobalization start?

A tariff __________ the price of goods.

_____________ is the term for the price of a good being sold in different places tending toward the same level.

After the Great Depression,what was the most important factor that worked against the resumption of globalized economic integration?

Which two instruments of economic policy helped states gain more control over the flow of economic activity in the period of deglobalization that followed the Great Depression?

Which two modes of transportation around the middle of the nineteenth century were considered revolutionary?

An economic system in which the place for market-produced goods is limited is __________.

When a government makes it harder for an investor who,seeking diversification,wishes to move money offshore,it is exercising __________.

__________ is a commonly used measure of global economic integration.

What two things had to occur before globalization could really take off in the nineteenth century?

Since the 1970s,governments across the world have enacted which type of economic policy?

Which of the following features of the capitalist system distinguishes it from other systems?

Gross domestic product (GDP) is equal to the value of __________.

In the 1870s,what group of indicators signalled a turning point in global economic integration?