global economy

Question 1

Which of the following is true concerning globalizations impact on the US:

Answer 1

it has hit low wage factory workers the hardest

Question 2

A _______ currency discourages imports and protects domestic businesses

Answer 2

weak

Question 3

A limit on the number of goods allowed for importation is a(n):

Answer 3

quota

Question 4

Which of the following is true concerning globalization’s impact on the distribution of wealth:

Answer 4

it increases all wages, but increases those of the wealthy more than the bottom 50%

Question 5

MNC’s #1 loyalty is to:

Answer 5

loyalty

Question 6

Economies of scale:

Answer 6

lead to lower consumer prices

Question 7

The two factors leading to exponential growth of global trade were:

Answer 7

technological advances in communication and shipping

Question 8

Global competition in the product and labor market means that:

Answer 8

wages are suppressed, but lower prices allow for an equal or better standard of living

Question 9

Which of the following is NOT a result of globalization:

Answer 9

individual nations now produce a wider range of goods than they used to

Question 10

Understanding the global economy is important because:

Answer 10

a. job-seekers compete against workers from around the globe
b. workers will likely interact with people from different nations
c. ALL OF THESE
d. more than one of these
e. a large amount of our consumer goods are made overseas