Mock_test

What is the dominant form of production and consumption around the world?

• Capitalism

• Communism

• Globalization

• Laissez-faire

• Mercantilism

What is the most important institution of allocation of resources in a capitalist system?

• the elites

• the state

• the autocrats

• the market

• the government

Consequences of the Industrial Revolution:

• Creation of an industrial working class

• all of the above

• Urbanization

• Population effects

• Growth of global markets and international trade

Globalization:

• is a mixture of both negative and beneficial effects

• is inherently negative

• is mostly negative

• is mostly beneficial

• is always beneficial

Which is NOT TRUE regarding TNCs (MNEs) ?

• TNCs have the advantages of economies of scale

• TNCs are the primary agents of international trade

• They account for a large portion of the goods produced in the world

• Most maintain their headquarters in North America, Western Europe, and Japan

• Their total number has decreased since 1970 with mergers and consolidations

Which commodities dominate international trade?

• Manufactured goods and commercial services

• Chemicals

• Travel

• Transportation

• Agricultural products

Choose the wrong statement

• Mediterranean traders like the Genoese and the Venetians established banking operations in distant locations as early as 1200 CE to finance the trade which their ships carried

• From the time that people began to trade with one another, they set up foreign commercial operations

• Foreign commercial investment reached a high point in the development of the large mercantile trading companies

• Foreign direct investment was discovered and developed in the 21st century

• Beginning in the eighteenth century, but more importantly in the nineteenth century, there was a direct foreign investment in agriculture, mining, and manufacturing as distinct from the earlier forms of commercial investment

The Bretton Woods System is referred to as the "gold exchange standard" because...

• ...it replaced sterling which had been the silver exchange standard

• ...gold was the fundamental standard of value based on the ability of the US to maintain the parity of $35 per ounce

• ...all central banks exchanged their foreign exchange reserves for gold to become members of the system

• ...gold could be exchanged between countries, all other capital was controlled

• all ansewers are incorrect

In the context of globalization, how can we best define the term 'development'?

• The term development refers to the human condition in which there is freedom from fear and want; there are sufficient resources to sustain life and this life can exist in a state free from the threat, or perceived threat, of sudden interruption

• To be considered as developed, a nation must have achieved certain economic and political status within the global state system; the criterion for what constitutes a 'developed' state is thus defined by those requirements of interaction in this system

• Development of a community refers to the ideological and ethical value systems to which its population subscribes. In the globalised international system this refers to the adoption of western liberal democratic ideology and free market economics

• all answers are incorrect

• Development is a means to address the inequalities that accompany neoliberal globalization. In this context, development refers to the ability of a population or community to effectively utilize resources and increase efficiency in production and distribution, promoting the more equitable distribution of income within society

What was the name of the US-led and -funded plan for reconstructing postwar Europe called?

• The Marshall Plan

• The Truman Doctrine

• The Bretton Woods system

• The Structural Adjustment Plan

• The Keynes Plan