F: Free trade must be carefully monitored.

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How do quotas help domestic producers?

Quotas facilitate increased exports of domestic goods.

Quotas lower the cost of domestic goods.

Quotas limit the number of producers that compete in a sector.

Quotas facilitate the sale of more domestic goods.

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Read the following quotation by President Bill Clinton."Free trade can be a win-win for everyone, but only if it is based on fair rules, enforced faithfully, with adequate safeguards to protect the rights of workers and the environment.” With which statement would President Bill Clinton most likely have agreed?

Free trade helps every nation.

Free trade has drawbacks for participants.

Free trade will eliminate poverty.

Free trade must be carefully monitored.

most likely

Free trade helps every nation.

Free trade has drawbacks for participants.

Free trade will eliminate poverty.

Free trade must be carefully monitored.

How have airplanes changed the way the world does business? Choose four answers.by shipping raw materials to manufacture goods in other countriesby shortening travel timeby opening up new trade markets worldwideby connecting business partners the fastestby increasing options for travel destinations

by shipping raw materials to manufacture goods in other countries

by shortening travel time

by opening up new trade markets worldwide

by connecting business partners the fastest

by increasing options for travel destinations

If investors can earn 10 percent interest in an account in Mexico but just 3 percent in the United States, those investors will most likely

continue to invest in the United States and have no effect on the exchange rate.

want to invest in Mexico and cause the exchange rate to rise.

try to do anything possible to keep the exchange rate from changing.

want to invest in Mexico, which will cause the peso to appreciate.

International trade organizations promote free trade by encouraging countries to

maintain their tariffs.

establish their trade quotas.

reduce their trade barriers.

develop their products.

Why were free trade zones created in China?

to avoid governmental rules and conditions

to attract investments by foreign countries

to import technology more easily

to control imports and exports

Global trade provides consumers with

more options and lower prices.

fewer options and lower prices.

more options and higher prices.

fewer options and higher prices.

Which best describes the standards required of foreign producers?

Foreign producers have more stringent standards than domestic producers.

Foreign producers must meet the same standards as domestic producers.

Foreign producers must meet specific standards based on their origin.

Foreign producers do not use standards that harm consumers.

What is the most common reason why countries create trade agreements?

to limit imports

to create free trade

to establish quotas

to decrease trade

How has globalization made countries more interdependent? Choose five answers.Countries now rely on one another for vital resources.Countries now rely on each other for new industries.Countries now rely on one another for chances to import and export.Countries now rely on one another to lower their GDP.Countries rely on each other for cheaper products.Countries now rely on one another for an employment base.

Countries now rely on one another for vital resources.

Countries now rely on each other for new industries.

Countries now rely on one another for chances to import and export.

Countries now rely on one another to lower their GDP.

Countries rely on each other for cheaper products.

Countries now rely on one another for an employment base.

Which factor plays a role in establishing the value of a country’s currency?

the attractiveness of the currency design

the location of the country

supply and demand

distance between countries

The chart below shows an exchange rate table.

less than a pound

more than a pound

exactly one pound

about eight pounds

Which region specializes in diamonds?

Central America

Middle East

Europe

Sub-Saharan Africa

Purchasing power parity is used to compare the gross domestic product between

businesses.

consumers.

stock markets.

countries' currencies.

What is one reason two countries may sign a treaty to create a direct agreement with one another?

to establish barriers to trade

to cut taxes

to collect more taxes

to limit trade opportunities for competing companies

The primary benefit of a Free Trade Agreement is that they

allow countries to charge high tariffs on imports and exports.

allow countries to more easily buy what they do not produce.

have fewer economic restrictions than trade organizations.

can fund international finance projects.

A country with an absolute advantage can produce a good or service

more slowly than another country.

more efficiently than another country.

less efficiently than another country.

in twice the time as another country.

Why were free trade zones created in China?

to avoid governmental rules and conditions

to attract investments by foreign countries

to import technology more easily

to control imports and exports

What is the most common reason why countries create trade agreements?

to limit imports

to create free trade

to establish quotas

to decrease trade

What can be a result of free trade? Check all that apply.trade imbalancesdecreased productionlower economic growthincreased pollutionexploitation of workersnew opportunities

trade imbalances

decreased production

lower economic growth

increased pollution

exploitation of workers

new opportunities

Which statement best describes how globalization is affecting the world?

Globalization is growing less important as time passes.

The world is becoming more globalized and connected.

Globalization has resulted in fewer connections among countries.

Countries are growing less likely to trade with one another.

Tariffs and subsidies are both examples of

monetary restrictions for the domestic producer.

economic benefits for the consumer.

economic benefits for the international producer.

incentives—one positive and one negative.

Trade agreements can cause jobs to go to countries that provide those jobs

efficiently.

expensively.

freely.

gradually.

Which of these statements most accurately describes currencies in North America?

All countries in North America use the US dollar.

All countries in North America use the euro.

North American countries have done away with separate currencies.

Each country in North America uses its own currency.

What is an example of a country that makes use of another nation’s currency?

France

Germany

Panama

Mexico

What role does competition play in international trade?

It results in higher prices.

It discourages imports.

It drives down prices for consumers.

It does away with the need for investment.

Which type of trade barrier is explicitly used for political purposes?

standards

embargoes

quotas

tariffs

What is one reason two countries may sign a treaty to create a direct agreement with one another?

to establish barriers to trade

to cut taxes

to collect more taxes

to limit trade opportunities for competing companies

Which region is most likely to export bananas to the United States?

Europe

Central America

Middle East

Asia

Which region specializes in diamonds?

Central America

Middle East

Europe

Sub-Saharan Africa

The graph below shows the value of the US dollar versus the Canadian dollar.

rising against the Canadian dollar.

falling against the Canadian dollar.

more than twice that of the Canadian dollar.

about half that of the Canadian dollar.

How do quotas help domestic producers?

Quotas facilitate increased exports of domestic goods.

Quotas lower the cost of domestic goods.

Quotas limit the number of producers that compete in a sector.

Quotas facilitate the sale of more domestic goods.

The business practice of hiring workers in another country is known as

globalization.

insourcing.

subcontracting.

outsourcing.

One primary purpose of the European Union is to

create a common market.

eliminate borders between countries.

allow highly skilled workers to be employed.

limit trade among member countries.

The graph shows households in the world with internet access from 2003 to 2019.

A 30 percent increase in internet access has most likely had little effect on globalization.

A 40 percent decrease in internet access has most likely had little effect on globalization.

A 50 percent increase in internet access has most likely sped up globalization.

A 60 percent decrease in internet access has most likely slowed down globalization.

The chart below shows an exchange rate table.

Japan's currency shows that it has the strongest economy of any country.

The value of each currency is shown in relation to the US dollar.

It would take six British pounds to purchase one US dollar.

Swiss francs are the strongest currency in Europe.

Often duties and taxes are imposed on cars that are imported from other countries. What types of incentives are these duties and taxes?

positive incentive and subsidy.

negative incentive and subsidy.

positive incentive and tariff.

negative incentive and tariff.

"technology"

Answer:

33190

If investors can earn 10 percent interest in an account in Mexico but just 3 percent in the United States, those investors will most likely

continue to invest in the United States and have no effect on the exchange rate.

want to invest in Mexico and cause the exchange rate to rise.

try to do anything possible to keep the exchange rate from changing.

want to invest in Mexico, which will cause the peso to appreciate.

What is one stated purpose of the World Trade Organization?

to create a common currency

to encourage the expansion of exports

to monitor trade policies of many countries

to establish direct trade agreements between countries

According to this quotation, what did President Ronald Reagan believe about economic growth?"We should be trying to foster the growth of two-way trade, not trying to put up roadblocks, to open foreign markets, not close our own.”

Increased trade barriers would help the economy.

Free trade associations would limit competition.

Increased fair trade would help the economy.

Trade barriers would help make trade more fair.

Which group directly benefits from subsidies?

exporters

sellers

producers

importers

four

by shipping raw materials to manufacture goods in other countries

by shortening travel time

by opening up new trade markets worldwide

by connecting business partners the fastest

by increasing options for travel destinations

How can a nation benefit from effectively exporting its goods?

Its citizens can buy cheaper goods.

Its businesses can invest in the future.

Its domestic spending increases.

Its citizens have more money.

What is the government’s aim in setting quotas?

to create more competition in the market

to increase sales of domestic goods

to keep tariffs high

to limit export of domestic goods

Which situation is the best example of opportunity cost?

A country chooses to produce bananas instead of wheat.

A country chooses to invest in manufacturing and agriculture.

A country chooses to specialize in producing paper products.

A country chooses to export all of its products.

Technologies that allow for instant worldwide communication include

high-speed trains and naval ships.

mobile phones and Internet access.

airplanes and container shipping.

outsourcing and new trade markets.

How are subsidies similar to tariffs?

Both are types of taxes.

Both aim to lower the price of domestic goods.

Both are types of tax breaks and financial assistance.

Both allow domestic goods to compete against foreign goods.

A specific territory or zone that has laws and regulations different from the rest of the country is called a(n)

work zone.

border zone.

tax-free zone.

economic zone.

Which is an example of a country that is overly dependent on another country for critical goods and services?

a country that imports all its oil

a country that imports all of its luxury goods

a country that licenses some television shows

a country that has some international businesses

What can be a result of free trade? Check all that apply.trade imbalancesdecreased productionlower economic growthincreased pollutionexploitation of workersnew opportunities

trade imbalances

decreased production

lower economic growth

increased pollution

exploitation of workers

new opportunities

Gross domestic product tracks economic growth by measuring all goods and services

exported by an economy.

produced by an economy.

imported by an economy.

purchased by an economy.

Read this news report about a planned devaluation of the bolivar, the currency of Venezuela.The president of Venezuela announced that the country would be devaluating the bolivar for the fifth time in nine years. The official rate is falling from 4.3 bolivars to the dollar, to 6.3, a 32% devaluation. By increasing the bolivar value of exports of oil to the US and other nations, the government hopes to alleviate a budget crisis caused by its increasing reliance on borrowing to meet spending obligations.In response to the announcement, the people of Venezuela lined up today to buy televisions, electronics, and airline tickets in order to protect themselves from projected price increases.

followed the law of supply and demand.

allowed the exchange rate to remain unchanged.

increased the number of bolivars needed to buy one dollar.

decreased the number of bolivars needed to buy one dollar.

What are the most likely reasons a US corporation would open a factory in China? Choose four answers.to take advantage of affordable land pricesto take advantage of abundant resourcesto take advantage of lower labor coststo take advantage of favorable tax lawsto take advantage of US employment opportunities

to take advantage of affordable land prices

to take advantage of abundant resources

to take advantage of lower labor costs

to take advantage of favorable tax laws

to take advantage of US employment opportunities

best

A US shoe company opens a factory in China and hires Chinese workers to make shoes.

A US shoe company opens a factory in the US and hires US workers to make shoes.

A US shoe company opens a factory in the US and hires Chinese workers to make shoes.

A Chinese shoe company opens a factory in China and hires Chinese workers to make shoes.

best

The US and Western Europe are strong because they have high GDPs.

The US and Western Europe are weak because they have low GDPs.

The US and Western Europe are strong because they have low GDPs.

The US and Western Europe are weak because they have high GDPs.

On which country has the United States imposed an embargo since 1960?

Cuba

Iran

North Korea

Syria

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