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978-0521177108 Chapter 1
Test Bank for An Introduction to International Economics: New Perspectives on the World Economy 1 Chapter 1: Introduction MULTIPLE CHOICE 1. Which of the following is not an asset exchanged among counties? a. Real estate b. Equities c. Insurance d. […]
978-0521177108 Chapter 10
Chapter 10: Foreign Direct Investment and Intra-Firm Trade MULTIPLE CHOICE 1. Forward integration along a value chain refers to: a. The addition of facilities to further process a product currently produced. b. The introduction of a new material to be […]
978-0521177108 Chapter 11
Chapter 11: Managing International Production MULTIPLE CHOICE 1. Which item is not one of Porter’s four elements of competitive advantage in the home base? a. Demand conditions. b. Factor conditions. c. Related and supporting industries. d. Foreign trade barriers. 2. […]
978-0521177108 Chapter 12
Chapter 12: Migration MULTIPLE CHOICE 1. Which of the following types of migration is least relevant to international production? a. Permanent high skilled migration. b. Refugees. c. Temporary high-skilled migration. d. Temporary low-skilled migration. 2. Which of the following is […]
978-0521177108 Chapter 13
Chapter 13: Accounting Frameworks MULTIPLE CHOICE 1. Which item below is not an element of income in a closed economy? a. Wages. b. Salaries. c. Payments for use of property assets. d. Barter transactions. 2. Which item below is not […]
978-0521177108 Chapter 14
Chapter 14: Exchange Rates and Purchasing Power Parity MULTIPLE CHOICE 1. The nominal exchange rate is: a. The price of one currency in terms of another. b. The rate at which two countries’ goods trade against each other. c. The […]
978-0521177108 Chapter 15
Chapter 15: Flexible Exchange Rates MULTIPLE CHOICE 1. In the trade-based model of exchange rate determination, the nominal exchange rate is determined by: a. Purchases and sales of currencies arising from imports and exports. b. Transactions arising from the exchange […]
978-0521177108 Chapter 16
Chapter 16: Fixed Exchange Rates MULTIPLE CHOICE 1. Which of the following is the most flexible exchange rate regime? a. Crawling peg. b. Crawling band. c. Managed float. d. Currency board. 2. Which of the following will not help sustain […]
978-0521177108 Chapter 17
Chapter 17: The International Monetary Fund MULTIPLE CHOICE 1. Countries operating under the gold standard in the 19th century faced what important constraint? a. Capital mobility was limited. b. The inability to conduct an independent monetary policy. c. Fiscal policy […]
978-0521177108 Chapter 18
Chapter 18: Crises and Responses MULTIPLE CHOICE 1. The Mexican crisis of 1994-1995 was an example of: a. Balance of payments and currency crisis. b. Hyperinflation. c. Domestic debt crisis. d. Banking crisis. 2. The Zimbabwe crisis of 1998-2009 was […]
978-0521177108 Chapter 19
Chapter 19: Monetary Unions MULTIPLE CHOICE 1. Which of the following is not one of the European Monetary Union convergence criteria? a. Price stability. b. Low employment rate. c. Reasonable level of government budget deficit. d. Reasonable level of government […]
978-0521177108 Chapter 2
Chapter 2: Absolute Advantage MULTIPLE CHOICE 1. In Vietnam and Japan, the supply curve for rice will shift to the right if: a. Weather conditions for rice worsen b. Prices of farm input go up c. Rice-growing technology increases its […]
978-0521177108 Chapter 20
Chapter 20: Development Concepts MULTIPLE CHOICE 1. Which of the following is a positive aspect of the per-capita GDP concept of development? a. It only includes market activities. b. Higher GDP per capita allows people to purchase more goods and […]
978-0521177108 Chapter 21
Chapter 21: Growth and Development MULTIPLE CHOICE 1. Which of the following is not a factor in the intensive production function? a. Per capita output. b. Capital-labor ratio. c. Wages. d. Technology. 2. Which of the following is the correct […]
978-0521177108 Chapter 22
Chapter 22: International Production and Development MULTIPLE CHOICE 1. Which of the following is not an employment benefit of FDI in a host country? a. Transfer of existing jobs from local to foreign firms. b. Increase of total number of […]
978-0521177108 Chapter 23
Chapter 23: The World Bank MULTIPLE CHOICE 1. Which of the following is not one of the purposes of the World Bank? a. To provide loans to help with reconstruction and development of countries. b. To promote private foreign investment. […]
978-0521177108 Chapter 24
Chapter 24: Structural Change and Adjustment MULTIPLE CHOICE 1. The best way of viewing structural change in development processes is: a. Agriculture is an unproductive s sector. b. Resources move from less-productive to more-productive sectors. c. As development proceeds, the […]
978-0521177108 Chapter 3
Chapter 3: Comparative Advantage MULTIPLE CHOICE 1. The value of a good that is given up to produce another is: a. Dollar cost b. Opportunity cost c. Relative cost d. Absolute cost 2. Any point on the production possibilities frontier […]
978-0521177108 Chapter 4
Chapter 4: Intra-Industry Trade MULTIPLE CHOICE 1. Which of the following does not describe inter-industry trade? a. It is based on comparative advantage. b. It covers either imports or exports in a given sector of the economy. c. It covers […]
978-0521177108 Chapter 5
Chapter 5: The Political Economy of Trade MULTIPLE CHOICE 1. In a two-product, comparative advantage model involving wheat and computers, which of the following statements is true? a. The country with an absolute advantage in wheat should export wheat because […]
978-0521177108 Chapter 6
Chapter 6: Trade Policy Analysis MULTIPLE CHOICE 1. Which of the following is a non-tariff measure (NTM): a. Quota. b. Technical barrier to trade. c. Countervailing duty. d. All of the above. 2. In the figure above, how much wheat […]
978-0521177108 Chapter 7
Chapter 7: The World Trade Organization MULTIPLE CHOICE 1. Which of the following is not one of the key principles incorporated into the original GATT? a. Most favored nation. b. National treatment. c. Prohibition of quotas. d. Intellectual property rights […]
978-0521177108 Chapter 8
Chapter 8: Preferential Trade Agreements MULTIPLE CHOICE 1. Which type of preferential trade agreement has a common external tariff? a. Free trade area. b. NAFTA. c. Customs union. d. FTAA. 2. Which type of preferential trade agreement allows the free […]
978-0521177108 Chapter 9
Chapter 9: Foreign Market Entry and International Production MULTIPLE CHOICE 1. A company seeks to sell it products in a foreign country. That country prohibits any controlling interests in locally-based enterprises. What is the company’s best course of action? a. […]