Question 1

The Trans-Pacific Partnership (TPP) currently includes:

Accepted Answer

The TPP group currently includes Australia, Brunei Darussalam, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States, and Vietnam.

Question 2

The emerging global community is becoming increasingly:

Accepted Answer

An emerging global community is becoming increasingly interdependent economically.

Question 3

A major development in South America is:

Accepted Answer

Despite the ups and downs, a major development in South America is the growth of intercountry trade, spurred on by the progress toward free-market policies.

Question 4

Which of the following statements is false with regard to a mixed economy?

Accepted Answer

Businesses in the command economy model are owned by the state to ensure that investments and other business practices are done in the best interest of the nation despite the often contradictory outcomes.

Question 5

In 2009, FDI inflows and outflows:

Accepted Answer

In the wake of the global recession, global FDI dropped almost 50 percent to $896 billion in 2009.

Question 6

In 2011, global merchandise exports and global commercial services exports:

Accepted Answer

According to the World Trade Organization (WTO), both global merchandise exports and global commercial services exports reached a record high in 2011.

Question 7

Which of the following statements is true of the economic system of North America?

Accepted Answer

The free-market-based economy of North America allows considerable freedom in decision-making processes of private firms.

Question 8

Identify the statement which is not true of Mexico.

Accepted Answer

Mexico's trade with both the EU and Asia is on the rise, which is important to Mexico as it wants to reduce its overreliance on the U.S. market.

Question 9

_____ is the United States' largest trading partner, a position it has held for many years.

Accepted Answer

Canada is the United States' largest trading partner, a position it has held for many years.

Question 10

In the early 1990s, _____ had recovered from its economic problems of the previous decade and become the strongest economy in Latin America.

Accepted Answer

By the early 1990s Mexico had recovered from its economic problems of the previous decade and had become the strongest economy in Latin America.

Question 11

Which country receives the most foreign direct investment (FDI) by U.S.companies?

Accepted Answer

The United States has considerable foreign direct investment in Canada, more than in any other country except the United Kingdom.

Question 12

The United States holds a dominant position in all of the following industries except:

Accepted Answer

U.S. firms maintain particularly dominant global positions in technology-intensive industries, including computing (hardware and services), telecommunications, media, and biotechnology.

Question 13

A _____ exists when private enterprise reserves the right to own property and monitor the production and distribution of goods and services while the state simply supports competition and efficient practices.

Accepted Answer

A market economy exists when private enterprise reserves the right to own property and monitor the production and distribution of goods and services while the state simply supports competition and efficient practices.

Question 14

The FDI is estimated to reach _____ in 2014.

Accepted Answer

By 2014, FDI is estimated to reach $1.9 trillion, surpassing the all-time high set in 2007.

Question 15

The term used to indicate the amount invested in property, plant, and equipment in another country is:

Accepted Answer

Foreign direct investment (FDI) is the term used to indicate the amount invested in property, plant, and equipment in another country.

Question 16

The Goldman Sachs global economics team:

Accepted Answer

In 2011, Goldman Sachs further argued that the economic potential of Brazil, Russia, India, and China (the "BRIC" economies) is growing at an even faster pace such that they may constitute four of the top five most dominant economies by the year 2050, with China surpassing the United States in output by 2027.

Question 17

A factory located in a Mexican border town that imports materials and equipment on a duty and tariff-free basis for assembly or manufacturing and re-exports is called a:

Accepted Answer

Under a maquiladora system, materials and equipment can be imported on a duty- and tariff-free basis for assembly or manufacturing and re-export mostly in Mexican border towns.

Question 18

A survey (reported in our textbook) of businesspeople from Argentina, Brazil, Chile, Columbia, and Venezuela found that the _____ market, on average, was more important to their economic well-being than any other.

Accepted Answer

A survey of businesspeople from Argentina, Brazil, Chile, Colombia, and Venezuela found that the U.S. market, on average, was more important for them than any other.

Question 19

Which of the following observations about NAFTA is incorrect?

Accepted Answer

Mexican firms, taking advantage of a new arrangement that the government has negotiated with the EU, can also now export goods into the European community without having to pay a tariff.

Question 20

A _____ is comparable to a monopoly in the sense that the organization, in this case the government, has explicit control over the price and supply of a good or service.

Accepted Answer

A command economy is comparable to a monopoly in the sense that the organization, in this case the government, has explicit control over the price and supply of a good or service.

Quiz 1: Globalization and International Linkages