International Trade and Globalization Test Review

In international trade, comparative advantage is measured in ___

• trade-weighted value

• difference between money paid and money received in trade

• foreign exchange

• efficiency

One trend associated with globalization is

• less political stability among nations

• a growing reliance on the World Bank among nations

• less political cooperation among nations

• a growing economic interdependence among nations

How does population growth affect a country’s natural resources?

• Population growth causes natural resources to be more carefully used in a country

• Population growth adds to the development of natural resources in a country

• Population growth adds to the depletion of many natural resources in a country.

• Population growth leads to the discovery of more natural resources in a country

A farmer can grow wheat or corn. She grows corn because it will make more money than wheat. The value of the wheat crop she chose not to grow could best be described as _______ .

• a comparative advantage
• all answers are correct
• comprative disadvantage
• opportunity cost

What would a free-trader most likely support?

• the infant industries argument
• a revenue tariff
• NAFTA
• an embargo

Natural gas is considered a renewable resource because it replaces itself over time.

• True

• False

Which of the following is most directly affected by an embargo established by the United States?

• U.S. tariffs
• U.S. exports
• U.S. imports
• U.S. free traders

Which of the following factors can slow or halt the process of globalization in the world?

• growth in number of multinationals
• more specialization
• perceived threat to a nation's culture, politics or religion
• growth in population control

Which countries are not making progress in using non-renewables and in reducing pollution?

• those countries in the early stages of industrialization
• those countries in the highly developed stages of industrialization
• those countries that have strong, wealthy economies
• those countries that have bypassed the five stages of economic growth

Exchange rates among the currencies of the world change _______ .

• annually 
• constantly
• slowly
• rarely