Reference no: EM133436667

Questions

1. Most payments for trade between countries in the global economy are settled using

A. Euros

B. British pounds (WRONG)

C. Gold

D. Japanese Yen

E. US dollars

2. Which of the following is not one of the major characteristics of Third Globalization:

A. relaxation of capital controls

B. diminishing importance of central banks

C. huge increase in global trade of goods

D. shift to NIDOL

E. global supply chains (WRONG)

3. According to James Fallows, NIDOL and industrialization in China

A. have stolen all of the good jobs in America

B. have destroyed the supply chains built up by Wal-Mart and other American retailers (WRONG)

C. have impoverished and immiserated the people of China with sweatshop wages and conditions

D. have lifted more people out of poverty than foreign aid and the World Bank

4. What does China do with much of the billions of US dollars accumulated through its huge trade surplus with the United States? (i.e., after Americans pay for all those imports, where do those dollars go?)

A. China invests the dollars in the United States

B. China uses the dollars to build more weapons

C. China uses the dollars to import more from the United States (WRONG)

D. China gives most of the money away as foreign aid

5. How did Malaysia avoid the worst effects of the financial crisis in Southeast Asia?

A. by opening its country to greater foreign investment to stimulate economic growth

B. by following SAP austerity measures (i.e., cutting government spending on infrastructure, etc) (WRONG)

C. by ignoring IMF prescriptions and imposing capital controls

D. by raising interest rates in order to strengthen its currency

6. The Gold Standard of the 1870s is an example of

A. a fixed exchange rate system

B. a managed float system

C. a balance of payments adjustment

D. a deflationary pressure on trading economies

E. a floating exchange rate system (WRONG)