Answers2026-2027 FBISD - EconomicsGlobalization

Globalization — Cumulative exam Answers

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41
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What is an example of a country that makes use of another nation’s currency?

A
France
B
Germany
C
Panama
D
Mexico
42
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Which type of trade barrier is explicitly used for political purposes?

A
standards
B
embargoes
C
quotas
D
tariffs
43

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

A
Europe
B
Central America
C
Middle East
D
Asia
44

Which region specializes in diamonds?

A
Central America
B
Middle East
C
Europe
D
Sub-Saharan Africa
45

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.
46

One primary purpose of the European Union is to

A
create a common market.
B
eliminate borders between countries.
C
allow highly skilled workers to be employed.
D
limit trade among member countries.
47

The chart below shows an exchange rate table.

Question illustration
A
Japan's currency shows that it has the strongest economy of any country.
B
The value of each currency is shown in relation to the US dollar.
C
It would take six British pounds to purchase one US dollar.
D
Swiss francs are the strongest currency in Europe.
48

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

A
positive incentive and subsidy.
B
negative incentive and subsidy.
C
positive incentive and tariff.
D
negative incentive and tariff.
49

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.
50

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.”

A
Increased trade barriers would help the economy.
B
Free trade associations would limit competition.
C
Increased fair trade would help the economy.
D
Trade barriers would help make trade more fair.
51

four

b
by shipping raw materials to manufacture goods in other countries
b
by shortening travel time
b
by opening up new trade markets worldwide
b
by connecting business partners the fastest
b
by increasing options for travel destinations
52

How can a nation benefit from effectively exporting its goods?

A
Its citizens can buy cheaper goods.
B
Its businesses can invest in the future.
C
Its domestic spending increases.
D
Its citizens have more money.
53

Which situation is the best example of opportunity cost?

A
A country chooses to produce bananas instead of wheat.
B
A country chooses to invest in manufacturing and agriculture.
C
A country chooses to specialize in producing paper products.
D
A country chooses to export all of its products.
54

Technologies that allow for instant worldwide communication include

A
high-speed trains and naval ships.
B
mobile phones and Internet access.
C
airplanes and container shipping.
D
outsourcing and new trade markets.
55

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

A
work zone.
B
border zone.
C
tax-free zone.
D
economic zone.
56

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

A
trade imbalances
B
decreased production
C
lower economic growth
D
increased pollution
E
exploitation of workers
F
new opportunities
57

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.

A
followed the law of supply and demand.
B
allowed the exchange rate to remain unchanged.
C
increased the number of bolivars needed to buy one dollar.
D
decreased the number of bolivars needed to buy one dollar.
58

best

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

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