Applied Economics Finals Quiz 1

Globalization is a process of moderate integration or interconnection between countries. State whether true or false.

• True

• False

Globalization will result by connecting countries as;

• Less competition among producers

• More competition among others

• No change in competition among manufacturers

Governments can use ____________ to increase or decrease (regulate) foreign trade and to decide what kinds of goods and how much of each should come into the country

• Trade Barriers

• Foreign Investment

• Imposition of Tariff and Quota

How technology enabled Globalization ?

• To reduce the trade barriers that happens in the country

• To exploit the natural diamonds in the invested country

• To reduce the cost and increase the speed in the market

•Multinational corporations have a detrimental effect on the environment because their operations may encourage pollution, land development, and the depletion of local and natural resources is an example of:

• Externalities

• Lower cost

• Environmental Sustainability

When an individual decides to reduce their spending now to increase the amount of savings they have in the bank, this results to:

• Economics Crisis

• Economic Leakage

• Threat to local economy

Universal Robina Corporation opened manufacturing plants to it's branches worldwide in order to increase the number of products produced day-by-day and it is called:

• Tariff Avoidance

• Economies of Scale

• Exploiting national diamonds

. According to the theory of comparative advantage, which of the following is not a reason why countries trade?

• The productivity of labor differs across countries and industries.

• Exports give a country a political advantage over other countries that export less

• Cost are higher

These are also known as transnational corporations

• Multinational Entrerprises

• Export and Import

• Absolute Advantage

A close economy uses four sector circular flow of income while an open economy uses two circular flow of income.

• True

• False