Economic Interactions

Globalization has led to growth in the following areas EXCEPT —

• international banks

• cottage industries

• service industries

• trade alliances

Which of the following has NOT been a result of improvements in transportation and communication promoting globalization?

• Technology that allows instant communication among people in different countries

• Widespread marketing of products

• Resulted in a lack of cottage industry growth

• Rapid and efficient exchange of goods and materials

Many businesses in industrialized countries have maintained competitive prices for their products by —

• increasing the hourly salaries of employees

• exporting labor-intensive work to developing nations

• preventing jobs from being outsourced to other countries

• offering monetary incentives to employees to increase production

The development of _________ is one way the people of India have tried to improve their standard of living.

• joint family systems

• tax reform

• highly developed transportation systems

• cottage industries

The U.S. Postal Service, FedEx, and UPS enable the growth of industry by—

• shipping merchandise quickly all over the world.

• providing postage stamps for people with low incomes.

• increasing postage rates.

• competing for service.

Which change occurred as a result of industrialization?

• Factory systems replaced cottage industries.

• Subsistence farming replaced commercial agriculture.

• Military production replaced consumer industries.

• Surface transportation replaced air transportation.

The expanded use of computers in the workplace has led to the increased —

• demand for unskilled laborers

• speed in the exchange of information

• distance employees must commute

• expense of international communications

What has been a disadvantage of the formation of economic unions?

• They have led to the creation of more efficient industries.

• They have led to the replacement of family farms by agribusinesses.

• They have more of an influence on the world market.

• They have given access to more resources without trade restrictions.

Brunei, Indonesia, Malaysia and Thailand are a few countries that have the highest developed economies in their region. Which alliance has helped promote the success of these nations?

• OPEC

• EU

• NAFTA

• ASEAN

Which of the following is NOT an economic union?

• North Atlantic Treaty Organization

• Association of Southeast Asian Nations

• Organization of Petroleum Exporting Countries

• North American Free Trade Agreement