IBM CHAP 1B

Which of the following is true of the IMF?

• It is often seen as the lender of first choice to nation-states whose economies are in turmoil

• Its loans come with no strings attached

• It is the less controversial of the two sister institutions, the IMF and the World Bank

• It has emerged as a significant player in the global economy

In late 2001, the WTO launched a new round of talks in Doha aimed at:

• Helping member states to cope with financial crisis

• Liberalizing the global trade and investment framework

• Protecting national economies from global competition

• Promoting higher standards of living in all member states

Which of the following is included in world merchandise trade?

• Service industry

• Agricultural labor

• Foreign services

• Mining products

_____ have/has the most to gain from reductions in agricultural tariffs and subsidies that are a part of the Doha agenda.

• The world’s developed nations

• The world’s poorer nations

• European nations

• The United States

The volume of world trade in merchandise growing faster than world GDP implies that:

• More firms are dispersing their production processes to global locations

• The economies of the world's nation-states are becoming more independent from each other

• The global economy is headed for a large downward correction

• The world is becoming poorer

In 2009, the financial crisis in the United States was triggered by:

• The global hike in the price of crude oil

• The slowdown in U.S. imports

• The problems in the U.S. subprime mortgage lending market

• The artificial fixing of currency rate by China

_____ predicts that the power of microprocessor technology doubles and its cost of production falls in half every 18 months.

• Keynes's Law

• Say's Law

• Moore's Law

• Sullivan Principles

Containerization allows:

• Reduction of the time needed to get from one location to another

• Simplification of transshipment from one mode of transport to another

• Buyers and sellers to find each other easily in a global economy

• Enterprises to coordinate and control a globally dispersed production system

The average tariff rates for manufactured goods have fallen significantly since 1950 and now stand at about _____.

• 18%

• 5.9%

• 4.8%

• 1.5%

The volume of world trade in merchandised goods has been:

• Growing at the same rate as world GDP

• Growing faster than world GDP

• Growing slower than world GDP

• Declining faster than world GDP