Understanding Economic Connections

What percentage of global trade is accounted for by TNCs?

• 50%

• 80%

• 90%

• 65%

How much of global trade value is double-counted due to GVCs?

• Approximately 15% of global trade value is double-counted due to GVCs.

• Approximately 30% of global trade value is double-counted due to GVCs.

• Approximately 50% of global trade value is double-counted due to GVCs.

• Approximately 10% of global trade value is double-counted due to GVCs.

What was the share of developing countries in global value-added trade in 1990?

• 15%

• 50%

• 35%

• 25%

Which company designs products in the USA but assembles them in China?

• Sony

• Microsoft

• Apple

• Samsung

What is an example of a product manufactured by IKEA?

• KALLAX shelf unit

• MALM dresser

• LACK coffee table

• BILLY bookcase

What percentage of global FDI is directed towards services activities by TNCs?

• 30%

• 45%

• 75%

• 60%

How has the share of developing countries in global value-added trade changed since 1990?

• The share of developing countries in global value-added trade has decreased since 1990.

• There has been no change in the share of developing countries in global value-added trade since 1990.

• Developing countries now account for a smaller portion of global value-added trade compared to 1990.

• The share of developing countries in global value-added trade has increased since 1990.

What is the approximate annual value of global trade?

• Approximately 10 trillion USD

• Approximately 15 trillion USD

• Approximately 50 trillion USD

• Approximately 25 trillion USD

Why is double-counting significant in global trade?

• Double-counting is beneficial for economic growth.

• Double-counting can distort trade statistics and economic analysis.

• Double-counting increases trade efficiency.

• Double-counting simplifies trade agreements.

What role do TNCs play in global production networks?

• TNCs are responsible for setting government policies on trade.

• TNCs coordinate and manage global production processes, optimize efficiency, and integrate local suppliers into supply chains.

• TNCs only operate in the technology sector and do not engage in manufacturing.

• TNCs primarily focus on local market sales and distribution.