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The Global Economy — Test Answers

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Based on this graph, globalization has affected China’s workforce by creating a shift toward specialization in

A
industry and away from services.
B
agriculture and away from services.
C
services and away from agriculture.
D
agriculture, services, and industry.
2
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International trade organizations promote free trade by encouraging countries to

A
limit their protectionism policies.
B
establish their trade quotas.
C
maintain their tariffs.
D
develop their products.
3

Who decides which currency each country in the world uses?

A
each individual country
B
the United States
C
the European Union
D
the United Nations
4

What type of economic growth do most developed economies experience?

A
rapid growth
B
moderate growth
C
unpredictable growth
D
slow growth
5

Which of these is a positive incentive for domestic producers?

A
a tariff on clothes
B
a subsidy on domestic oranges
C
a subsidy on imported cars
D
a tariff on cars
8

Why might a country choose to devalue its currency?

A
to encourage exports
B
to encourage imports
C
to reduce taxes
D
to please its trading partners
11

Technologies that allow for instant worldwide communication include

A
outsourcing and new trade markets.
B
mobile phones and Internet access.
C
high-speed trains and naval ships.
D
airplanes and container shipping.
12

Which statement best describes how globalization is affecting the world?

A
Countries are growing less likely to trade with one another.
B
Globalization has resulted in fewer connections among countries.
C
The world is becoming more globalized and connected.
D
Globalization is growing less important as time passes.
13

Which statement accurately describes a developing country?

A
The country's population has a high growth rate.
B
The country has a high standard of living.
C
The country has a high GDP per capita.
D
The country's population has a high life expectancy.
14

Why does the US import oil?

A
because it needs higher quality oil than it produces
B
because it does not produce any oil at all
C
because it has exported too much oil to nearby countries
D
because it is cheaper to import oil than to produce it
15

Which statements best explain how globalization offers an advantage to businesses? Choose four correct answers.

A
Businesses can take advantage of favorable laws to make products cheaply.
B
Businesses can take advantage of favorable taxes to make products cheaply.
C
Businesses can take advantage of new forms of technology to make products cheaply.
D
Businesses can take advantage of new forms of democracy to make products cheaply.
E
Businesses can take advantage of faster technology to make products faster.
16

Tariffs and subsidies are both types of

A
economic benefits for the international producer.
B
positive and negative incentives.
C
economic benefits for the consumer.
D
monetary restrictions for the domestic producer.
17

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

A
All countries in North America use the US dollar.
B
North American countries have done away with separate currencies.
C
Each country in North America uses its own currency.
D
All countries in North America use the euro.
18

Why do countries provide financial incentives?

A
Financial incentives act as trade barriers.
B
Financial incentives set standards.
C
Financial incentives limit imports.
D
Financial incentives restrict all trade.
19

Trade agreements are helpful because they allow countries to

A
help create new trade barriers.
B
influence foreign trade.
C
increase trade tax revenue.
D
trade for necessary goods.
20

Which statement best describes how globalization connects the world?

A
Globalization helps mandate new forms of transportation, communication, and technology.
B
Globalization helps create new forms of transportation, communication, and technology.
C
Globalization helps share old forms of transportation, communication, and technology.
D
Globalization helps expand old forms of transportation, communication, and technology.
21

What are standards designed to do? Choose three correct answers.

A
offer domestic industries an advantage
B
ensure safety
C
protect consumers
D
limit imports
E
support domestic industries

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