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Globalization — Cumulative exam Answers

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How do quotas help domestic producers?

A
Quotas facilitate increased exports of domestic goods.
B
Quotas lower the cost of domestic goods.
C
Quotas limit the number of producers that compete in a sector.
D
Quotas facilitate the sale of more domestic goods.
2
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most likely

F
Free trade helps every nation.
F
Free trade has drawbacks for participants.
F
Free trade will eliminate poverty.
F
Free trade must be carefully monitored.
3

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

A
continue to invest in the United States and have no effect on the exchange rate.
B
want to invest in Mexico and cause the exchange rate to rise.
C
try to do anything possible to keep the exchange rate from changing.
D
want to invest in Mexico, which will cause the peso to appreciate.
4

Global trade provides consumers with

A
more options and lower prices.
B
fewer options and lower prices.
C
more options and higher prices.
D
fewer options and higher prices.
5

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.

A
Countries now rely on one another for vital resources.
B
Countries now rely on each other for new industries.
C
Countries now rely on one another for chances to import and export.
D
Countries now rely on one another to lower their GDP.
E
Countries rely on each other for cheaper products.
F
Countries now rely on one another for an employment base.
6

Which region specializes in diamonds?

A
Central America
B
Middle East
C
Europe
D
Sub-Saharan Africa
7

The primary benefit of a Free Trade Agreement is that they

A
allow countries to charge high tariffs on imports and exports.
B
allow countries to more easily buy what they do not produce.
C
have fewer economic restrictions than trade organizations.
D
can fund international finance projects.
8

Why were free trade zones created in China?

A
to avoid governmental rules and conditions
B
to attract investments by foreign countries
C
to import technology more easily
D
to control imports and exports
9

Which statement best describes how globalization is affecting the world?

A
Globalization is growing less important as time passes.
B
The world is becoming more globalized and connected.
C
Globalization has resulted in fewer connections among countries.
D
Countries are growing less likely to trade with one another.
10

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

A
All countries in North America use the US dollar.
B
All countries in North America use the euro.
C
North American countries have done away with separate currencies.
D
Each country in North America uses its own currency.
11

What role does competition play in international trade?

A
It results in higher prices.
B
It discourages imports.
C
It drives down prices for consumers.
D
It does away with the need for investment.
12

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

A
to establish barriers to trade
B
to cut taxes
C
to collect more taxes
D
to limit trade opportunities for competing companies
13

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

Question illustration
A
rising against the Canadian dollar.
B
falling against the Canadian dollar.
C
more than twice that of the Canadian dollar.
D
about half that of the Canadian dollar.
14

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

A
globalization.
B
insourcing.
C
subcontracting.
D
outsourcing.
15

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

Question illustration
A
A 30 percent increase in internet access has most likely had little effect on globalization.
B
A 40 percent decrease in internet access has most likely had little effect on globalization.
C
A 50 percent increase in internet access has most likely sped up globalization.
D
A 60 percent decrease in internet access has most likely slowed down globalization.
16

"technology"

Answer:

33190

17

What is one stated purpose of the World Trade Organization?

A
to create a common currency
B
to encourage the expansion of exports
C
to monitor trade policies of many countries
D
to establish direct trade agreements between countries
18

Which group directly benefits from subsidies?

A
exporters
B
sellers
C
producers
D
importers
19

What is the government’s aim in setting quotas?

A
to create more competition in the market
B
to increase sales of domestic goods
C
to keep tariffs high
D
to limit export of domestic goods
20

How are subsidies similar to tariffs?

A
Both are types of taxes.
B
Both aim to lower the price of domestic goods.
C
Both are types of tax breaks and financial assistance.
D
Both allow domestic goods to compete against foreign goods.

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