1. Which of the following is not one of the primary criticisms of globalization?

A. It's increased the number of children in the work force.
B. It's had deleterious effects on labor and labor standards.
C. It's contributed to a decline in environmental and health conditions.
D. It's produced uneven results across nations and peoples.

2. The economic cooperation of the EU is most accurately described as a

A. free trade area.
B. common market.
C. complete economic integration.
D. customs union.

3. An evaluation of a country's economic and political risks made by a bank or potential investor is called a/an

A. country risk assessment.
B. international credit score.
C. benchmark.
D. stability appraisal.

4. _______ can be divided into portfolio and direct investment.

A. Exchange rate investment
B. Foreign investment
C. Production
D. Domestic investment

5. Defining a standard unit of currency by its equivalent in gold is called

A. the price specie flow.
B. the gold standard.
C. coinage.
D. par value.

6. A/An _______ is all forces influencing the life and development of the firm.

A. local population
B. foreign exchange
C. environment
D. group pool

7. The IMF established the _______ as the principal reserve asset in the international monetary system.

A. gold standard
B. special drawing right
C. capital account
D. BOP account

8. The Association of Southeast Asian Nations was formed to provide members with a

A. way to join with China as a political force.
B. free trade area.
C. common market.
D. plan for mutual protection and peaceful relations.

9. Inflation is generally measured by calculating the changes in

A. the balance of payments of 10 nations.
B. interest rates.
C. exchange prices.
D. the prices of a variety of goods and services.

10. Mercantilists believed that nations should

A. import goods to raise the standard of living.
B. produce goods for which there's a comparative advantage.
C. lower import duties to establish a level playing field.
D. allow an export surplus so they can accumulate gold.

11. An explanation of how a product begins as a country's export and later becomes an import is the theory of

A. unfair retaliation.
B. directional trade.
C. international product life cycles.
D. supply and demand.

12. _______ is an agreement among the countries that make up North America.

A. WTO
B. OECD
C. EU
D. NAFTA

13. An import duty that's a fixed percentage of the invoice value of an imported product is called a/an _______ duty.

A. specific
B. invoice
C. ad valorem
D. compound

14. In 2010, only 23 nations had GNIs greater than

A. the total sales of Exxon Mobil and Citigroup.
B. the sum of the GNIs of Japan, Germany, and France.
C. the sum of the combined sales of Ford and General Electric.
D. Walmart's total annual sales.

15. When market demand and supply regulate the exchange rate with intervention designed to moderate the
rate of change, it's called a/an

A. market method.
B. independent float.
C. fixed peg.
D. crawling peg.

16. The _______ has had a central role as a main central reserve asset of many countries, as a vehicle currency, and as an intervention currency.

A. U.S. dollar
B. British pound
C. yen
D. Euro

17. Decision making in the international environment is _______ in a purely domestic environment.

A. less complex than
B. less demanding than
C. more complex than
D. about the same as

18. When countries benefit from importing products requiring large amounts of their scarce production factors and export products requiring large amounts of their abundant production factors, they're exemplifying

A. absolute advantage.
B. comparative advantage.
C. the Leontief paradox.
D. the theory of factor endowment.

19. The exchange rate for a currency trade for delivery within two days is called the _______ rate.

A. spot
End of exam
B. forward
C. priority
D. cross

20. Treasury and Central Bank representatives met in _______ at the end of World War II and established the IMF, the World Bank, and the gold exchange standard.

A. Berlin
B. Jamaica
C. Bretton Woods
D. Diekirch