INR2002 - Ch. 7-10 Inquizative

What does it most commonly mean for a currency to manipulate its currency? (401) A. A country strengthens its currency. B. A country pegs the value of its own currency to another, larger country's currency. C. A country keeps the value of its currency artificially low. D. A country changes its macroeconomics policies to prevent a recession.

C. A country keeps the value of its currency artificially low.

Which of the following best captures the relationship, if any, between different patterns of colonial settlement and long-term economic development outcomes? (440-442) A. Europeans preferred to live in colonies that were further from their original home nation. B. Regions where European colonists did not want to live have had better long-term economic outcomes. C. Areas where European colonists could settle have had better long-term economic outcomes. D. There does not appear to be a relationship between the type of environmental climate of colony and its eventual economic success.

C. Areas where European colonists could settle have had better long-term economic outcomes.

Which group would benefit from a fixed currency? (393-399) A. Businesses that are entirely domestic in nature B. Central Banks C. Business that conduct international trade

C. Business that conduct international trade

(T/F) A stable international monetary regime I an example of a public good requiring a collective action. (404-405)

True

(T/F) Currency crises that start in one country often spread to others. (414-416)

True

(T/F) The eurozone crisis in the early 2010s primarily took place in countries such as Greece, Ireland, Portugal, and Spain. (418-419)

True

(T/F) The interests of creditor and debtor nations are most at odds with each other during recessions and depressions. (358-360)

True

(T/F) There is no major international institution specifically related to foreign direct investment. (376-377)

True

Would domestic manufacturers who sell overseas want a weak or strong currency? (393-399)

Weak currency

Would farmers want a weak or strong currency? (393-399)

Weak currency

Which of the following best captures the relationship between interest rates and exchange rates? (391-392) A. A country with higher interest rates will have a stronger currency. B. only those countries with a powerful central bank can have both interest rates and exchange rates. C. There is no relationship between interest rates and the strength of a currency. D. A country with higher interest rates will have a weaker currency.

A. A country with higher interest rates will have a stronger currency.

Choose all the following that are reasons a country might want a weak currency relative to other currencies. (389-390) A. A weaker currency encourages foreigners to buy its goods. B. A weaker increases the purchasing power of domestic consumers and importers C. A weaker currency allows groups such as domestic farers to be more competitive on the international market. D. A weaker currency allows a country's citizens to purchase more with their currency when abroad.

A. A weaker currency encourages foreigners to buy its goods. and C. A weaker currency allows groups such as domestic farers to be more competitive on the international market.

Which of the following is true about "comparative advantage"? A. Because of comparative advantage, trade barriers make domestic production less efficient. B. Comparative Advantage means a country can produce something better than any other country. C. Comparative Advantage means that trade will make one country better off at the expense of another.

A. Because of comparative advantage, trade barriers make domestic production less efficient.

Match the currency standard with the era in which it was commonly used. Classical gold-standard era --> ___________________ A. Commodity Standard B. National Paper Currency Standard C. Commodity-Backed Paper Standard

A. Commodity Standard

Panama pegs its currency to the value of the U.S. dollar is an example of _________. (391-391) A. Fixed exchange rate B. Gold Standard exchange rate C. Floating exchange rate

A. Fixed exchange rate

Why might a government want a fixed exchange rate? Choose all that apply. (393-397) A. Fixed exchange rates keep prices stable B. Fixed exchange rates facilitate international trade C. governments have ore flexibility in monetary policy with fixed exchange rates. D. Currency manipulation is easier with a fixed exchange rate.

A. Fixed exchange rates keep prices stable and B. Fixed exchange rates facilitate international trade

Choose all the following that are reason a government might want a floating exchange rate. (393-397) A. Floating exchange rates allow economic policies to have greater flexibility. B. Central banks have more authority with floating exchange rates. C. A floating exchange rate ties its currency's value to the value of fold or other precious metals. D. Trade is simplified with a floating exchange rate.

A. Floating exchange rates allow economic policies to have greater flexibility. and B. Central banks have more authority with floating exchange rates.

Choose all the following statements about import-substituting industrialization that are true. (446-448) A. Import-substituting industrialization focused on reducing reliance on imports from developed countries. B. Import-substituting industrialization was very popular after the end of the Great Depression and World War Two. C. Developed countries were more likely than developing countries to use import-substituting industrialization . D. Plantation owners and those who controlled natural resources in developing countries were in favor of import-substituting industrialization.

A. Import-substituting industrialization focused on reducing reliance on imports from developed countries. and B. Import-substituting industrialization was very popular after the end of the Great Depression and World War Two.

Programs such as Trade Adjustment Assistance (TAA) in the United States offer compensation and other social services to those harmed by globalization. Why? (316-318) Choose all that apply: A. In rich countries, trade may reduce the wages of low skilled workers. B. Citizens overwhelmingly support free trade. C. Globalization harms a majority of the population; hence, compensation is an easy political win for politicians. D. They reduce support for protectionism and opposition to free trade.

A. In rich countries, trade may reduce the wages of low skilled workers. and D. They reduce support for protectionism and opposition to free trade.

Which of the following are examples of austerity policy. Choose all that apply. (356, 358-360) A. Increasing Taxes B. Raising Wages C. Increasing Consumption D. Reducing Government Spending

A. Increasing Taxes and D. Reducing Government Spending

Choose all of the following that are ways the Heckscher-Ohlin theory helps explain trends in foreign investment in emerging markets. (350-352) A. Investors can get larger returns in developing countries because of the scarcity of capital. B. The abundance of land in developed countries leads to higher interest rates for capital there. C. Very few companies are comfortable operating in foreign markets. D. Developed countries pay little interest on loans because of the abundance of capital.

A. Investors can get larger returns in developing countries because of the scarcity of capital. and D. Developed countries pay little interest on loans because of the abundance of capital.

What reasons did supporters give for wanting to move the United States from the gold standard to the silver standard in the late 1800s and early 1900s? Choose all that apply. (403, 405-406) A. It would make American exports more competitive by devaluing the dollar. B. It would have lowered domestic prices for goods. C. It would have helped creditors. D. It would have helped debtors.

A. It would make American exports more competitive by devaluing the dollar. and D. It would have helped debtors.

Which of the following statements about the history of labor migration is correct? A. Labor migration was a proportionally larger percentage of the population in the 1800s than today. B. Labor migration has had traditionally been from developed countries to developing ones. C. Labor migration has been less politically controversial than other areas of international finance. D. Labor migration has been increasing in percentage terms since the beginning of the 1800s.

A. Labor migration was a proportionally larger percentage of the population in the 1800s than today.

Many people in developed countries where multinational corporations are headquartered have criticized MNCs for their practices. Which of the following is NOT a reason why people in developed countries criticize MNCs. (372-373) A. MNCs pay taxes in both their home countries and host countries. B. MNCs outsource some jobs to other countries, thereby hurting labor in their home country. C. MNCs avoid environmental regulations by moving production to states with less intense environmental standards. D. MNCs use the threat of moving jobs overseas to extract concessions from workers.

A. MNCs pay taxes in both their home countries and host countries.

Which of the following is NOT a key element of import-substitution industrialization? (446-448) A. Manufacturers are encouraged to produce goods for foreign markets. B. The government provides incentives to domestic industries. C. Trade barriers are erected to protect domestic manufacturers D. Basic industrial services such as power and water are provided by public enterprises.

A. Manufacturers are encouraged to produce goods for foreign markets.

Which of the following best explains the creation of the euro? A. Many European countries wanted a stable exchange rate between their countries. B. Germany found it more useful to have a common euro than to have other countries' currencies pegged to their old currency, the Deutschmark. C. Countries were tired of having to set their own macroeconomic policies. D. EU members wanted to restrict access to credit.

A. Many European countries wanted a stable exchange rate between their countries.

Match the currency crisis with the event that helped caused it. (416-419) Caused in part by political unrest and uncertainty tied to an assassination --> _______________ A. Mexico 1994 B. East Asia 1997 C. Europe 1992 D. Europe 2011-2015

A. Mexico 1994

The International Monetary Fund (IMF) is _________ likely to be involved with a debtor nation during a recession than during good economic times. (361-368) A. More B. Less

A. More

When debtor nations are going through a recession, they are _________ likely to default no their debts. (361-368) A. More B. Less

A. More

The United States places a limit on the amount of a good that is allowed to be imported. Is an example of: (324-325) A. Quota B. Most Favored Nation status C. Reciprocity D. Tariff

A. Quota

Why do some people criticize global attempts to contain currency crises? A. Some people believe that bailing out such currencies only rewards undeserving banks and governments. B. Currency crises rarely spread from one country to another. C. few are concerned about currency crises destabilizing governments. D. The international monetary regime is currently stable enough that currency crises no longer occur.

A. Some people believe that bailing out such currencies only rewards undeserving banks and governments.

Goldman Sachs, an American-based investment bank, lends money to the government of Indonesia for an infrastructure project. This is an example of _________. (349-353) A. Soveregin lending B. Portfolio investment C. Foreign direct investment

A. Soveregin lending

The relative movement of a country's import and export prices is known as what? (442) A. Terms of trade B. Commodity cartel C. Primary products D. Commerce infrastructure

A. Terms of trade

In the modern international monetary order, currencies are backed by which of the following? (404-405) A. The commitment of issuing government to maintain their values. B. The value of silver C. The value of gold D. Complex mathematics and cryptography that ensures a traceable ledger of transactions.

A. The commitment of issuing government to maintain their values.

How can incomplete information complicate bargaining between debtor and creditor nations? (355-371) Choose all that apply. A. The creditor may not know whether the debtor state ca really repay its debts. B. Debtors may not know how willing creditors really are to retaliate on defaults. C. Debtors may not know whether they can afford to pay back their debts. D. Creditors may not know how much debtors owe them.

A. The creditor may not know whether the debtor state ca really repay its debts. B. Debtors may not know how willing creditors really are to retaliate on defaults.

Which of the following were features of the gold-standard international monetary regime? Choose all that apply. (405-406) A. The system relied on major financial powers being willing to stabilize each other through emergency loans. B. It proved contentious places like the United States. C. Currency was backed by national government commitments rather than being tied to the value of a precious metal. D. The system ended in the 1970s.

A. The system relied on major financial powers being willing to stabilize each other through emergency loans. and B. It proved contentious places like the United States.

Relative to the situation under autarky, if a country introduces free trade this tends to _________ the domestic price and increase _________. If the country introduces a tariff, then, relative to free trade, _________ and producer surplus increase. (342-344) Fill-in the blanks: A. Decrease B. Consumer Surplus C. Increase D. Producer Surplus E. Government revenue

A. decrease, B. consumer surplus, E. government revenue

Country A is labor abundant, so democratization should provide political incentives to politicians to make trade policy more _________. This is because democratization expands the electorate and trade _________ the abundant factor. (336) Fill in the blanks: A. harms B. open C. protectionist D. benefits

A. open, B. benefits

Which of the following is NOT a domestic factor that can encourage economic growth? (429-434) A. A strong infrastructure B. A tropical environment C. Public confidence in the government D. A commitment to private property rights

B. A tropical environment

Choose all the following that are principal features of an international monetary regime. (404-405) A. Funding for international organizations to help set exchange rates. B. An understanding of whether currencies are fixed, floating, or a combination thereof. C. Agreement on what benchmark or standard currency value will be based on. D. Rules about allowable trade barriers between states.

B. An understanding of whether currencies are fixed, floating, or a combination thereof. and C. Agreement on what benchmark or standard currency value will be based on.

Which of the following do some scholars believe are geographic reasons a country might struggle to develop? Choose all that apply. (427-429) A. Having access to natural resources B. Being located in a tropical environment C. Having a large natural harbor D. Being landlocked

B. Being located in a tropical environment and D. Being landlocked

In country A, a political party representing labor interests was elected. It promptly instituted protectionist measures. In country B, a political party representing labor interests was similarly elected, but it promptly decreased tariffs and other barriers to trade. Which of the following explanations might account for the different policy decisions in country A and country B? (314-316) A. Country A is labor-abundant and country B is labor-scarce. B. Country A is labor-scarce, and country B is labor-abundant.

B. Country A is labor-scarce, and country B is labor-abundant.

Even at low interest rates, the cost of paying back concessional loans from the World Bank can be very costly for developing countries. This has led to a call for the World Bank to engage in _________. A. Austerity B. Debt forgivness C. Foreign Direct Investments D. Sovereign Lending

B. Debt forgivness

Which of the following is NOT a reason why foreign aid is unlikely to play a major role in overcoming underdevelopment? A. Foreign aid does not always get spent in a way that promotes development. B. Developing countries are incapable of achieving sustainable economic growth. C. There is not much political will in developed countries for substantially increasing foreign aid. D. The amount of foreign aid currently given is relatively small.

B. Developing countries are incapable of achieving sustainable economic growth.

Match the currency crisis with the event that helped caused it. (416-419) Spread rapidly from country to country, caused in part by lagging exports and rising inflation --> _______________ A. Mexico 1994 B. East Asia 1997 C. Europe 1992 D. Europe 2011-2015

B. East Asia 1997

The United States allows individuals to trade their currency for a set amount of gold per dollar is an example of _________. (391-392) A. Fixed exchange rate B. Gold Standard exchange rate C. Floating exchange rate

B. Gold Standard exchange rate

What does it mean when a country might have a "resource curse"? (435) A. Being a country with no useful natural resources means that economic growth is difficult to achieve. B. Having abundant access to a valuable natural resource often leads to less economic development over time. C. Access to natural resources does not appear to correlate with economic growth. D. Giving a country foreign aid in the form of natural resources rather than cash can lead to larger economic gains.

B. Having abundant access to a valuable natural resource often leads to less economic development over time.

Which of the following was one the most important lessons from the 1990s currency crisis in East Asia? (416-419) A. How pegging one's currency to gold can trigger a crisis when gold supplies drop. B. How quickly currency crises can spread from country to country C. How pegging one's currency to a regional superpower can be financially dangerous D. How changes in international monetary regimes can lead to crises.

B. How quickly currency crises can spread from country to country

What does LDC stand for? (427) A. Least developed cities B. Less developed country C. Legal development of capital D. Lowering development considerations

B. Less developed country

If the United States confers this status on Argentina, then a tariff reduction given by the United States to any other country with this status will automatically be given to Argentina. This is an example of: (324-325) A. Quota B. Most Favored Nation status C. Reciprocity D. Tariff

B. Most Favored Nation Status

Match the currency standard with the era in which it was commonly used. Modern era --> __________________ A. Commodity Standard B. National Paper Currency Standard C. Commodity-Backed Paper Standard

B. National Paper Currency Standard

Chase Bank, based out of the United States, purchases stock in a Japanese telecommunications company. This is an example of _________. (349-353) A. Soveregin lending B. Portfolio investment C. Foreign direct investment

B. Portfolio investment

When two countries that would gain from trade choose not to liberalize trade because of concerns that the other country might find hidden ways to maintain their barriers through health or safety regulations, this most closely resembles which of the following game theory interactions? (321) A. Stag Hunt B. Prisoner's Dilemma C. Chicken

B. Prisoner's Dilemma

Ukraine and Austria both produce wheat. Ukraine can produce a ton of wheat using man-hours, land resources, and other inputs equal to about 90 euros, while in Austria the inputs to produce the same ton of wheat cost approximately 180 euros. Based solely on this information, which of the following statements is accurate? (298, 340-342) A. Ukraine has comparative advantage in wheat production. B. Relative to Austria, Ukraine has absolute advantage in wheat production. C. Austria has comparative advantage in wheat production.

B. Relative to Austria, Ukraine has absolute advantage in wheat production.

Why did many European countries face difficult currency decisions in 1991 and 1992? A. They had large government debts they could no longer afford to pay off. B. They had pegged their currency to Germany's, and Germany was engaging in rapid interest rate increases. C. They wanted to remove their currency from its ties to the gold standard, but the United States would not allow them to. D. They were suffering from internal political strife that made investors hesitant to invest in their currencies.

B. They had pegged their currency to Germany's, and Germany was engaging in rapid interest rate increases.

Match the currency standard with the era in which it was commonly used. Bretton Woods Era --> __________________ A. Commodity Standard B. National Paper Currency Standard C. Commodity-Backed Paper Standard

C. Commodity-Backed Paper Standard

This kind of finance entails wealthy countries or organizations either giving money or lending it at a very low interest rate to poorer nations. (353-355) A. Portfolio B. Foreign Direct Investment (FDI) C. Concessional D. Austerity

C. Concessional

How does the Heckscher-Ohlin theory help us explain labor migration? (379-381) A. Countries with a shortage of skilled labor will "export" skilled labor to the rest of the world B. The Hecksher-Ohlin theory does not apply to labor migration. C. Countries with large numbers of unskilled labor will "export" that labor to the rest of the world. D. Countries with a shortage of land will pay more for unskilled labor.

C. Countries with large numbers of unskilled labor will "export" that labor to the rest of the world.

Country A exports computers and banking services. Country B exports dairy products and wheat. Country C exports clothing and shoes. According to the Heckscher-Ohlin trade theory, what factors would we expect each country to be abundant in, given only this information? (299-304) A. Country A: low-skilled labor, Country B: land, Country C: capital B. Country A: Land, Country B: low-skilled labor, Country C: capital C. Country A: Capital, Country B: land, Country C: low-skilled labor D. Country A: land, Country B: capital, Country C: low-skilled labor

C. Country A: Capital, Country B: land, Country C: low-skilled labor

There are several prominent approaches that help explain why it is difficult for some countries to improve their economic development. Which of the following is NOT one of those reasons? A. Domestic factors B. Domestic institutions C. Currency regimes D. Geographic location

C. Currency regimes

Match the currency crisis with the event that helped caused it. (416-419) Caused by Germany raising interest rates while other European nations had tied their currencies to the Deutschmark --> _______________ A. Mexico 1994 B. East Asia 1997 C. Europe 1992 D. Europe 2011-2015

C. Europe 1992

The United States allows the value of its currency to change based on supply and demand is an example of _________. (391-392) A. Fixed exchange rate B. Gold Standard exchange rate C. Floating exchange rate

C. Floating exchange rate

Aramco, a Saudi Arabian petroleum and natural gas company, owns and operates an oil refinery in China. This is an example of _________. (349-353) A. Soveregin lending B. Portfolio investment C. Foreign direct investment

C. Foreign direct investment

Toyota, a Japanese-based car maker, builds a new factory in Mexico. This is an example of _________. (349-353) A. Soveregin lending B. Portfolio investment C. Foreign direct investment

C. Foreign direct investment

This country was at the heart of the eurozone's currency crisis in the early 2010s and was nearly forced to leave the euro currency union on account of their sizable national debt. A. Ireland B. Spain C. Greece D. Portugal

C. Greece

Which of the following is NOT a reason that a corporation might want to become multinational. (371-373) A. MNCs avoid trade barriers by producing in a local market. B. MNCS have access to resources that they otherwise could not get. C. MNCs are less complex because they work with multiple governments. D. MNCs send different parts of the production chain to the places where they are cheapest.

C. MNCs are less complex because they work with multiple governments.

When France grants a trade-policy concession desired by Germany, Germany will also grant a trade-policy concession to France. This is an example of: (324-325) A. Quota B. Most Favored Nation status C. Reciprocity D. Tariff

C. Reciprocity

Under the Bretton Woods System regime, most currencies were pegged to ___, although countries were periodically allowed to adjust their exchange rates. (406-409) A. Gold B. The euro C. The U.S. dollar D. silver

C. The U.S. dollar

Which of the following does NOT accurately characterize China's monetary policy over the past few decades? A. The government has kept its currency artificially weak. B. One of China's main monetary goals has been to encourage the growth of domestic manufacturers. C. The government has raised interest rates to attract foreign investment. D. The government has purchased and kept large reserves of U.S. dollars

C. The government has raised interest rates to attract foreign investment.

The U.S. Congress is traditionally thought to be more protectionist than the president. Which of the following best explains this belief? (314-316) A. The members of Congress have incentives to "free-ride" on trade policy, whereas the president does not face a collective action problem. B. The president is more associated with left-wing parties and Congress with right-wing parties. C. The president represents the whole country, while members of Congress are electorally responsive only to the interests of their districts. D. The United States does not have strong class-based parties.

C. The president represents the whole country, while members of Congress are electorally responsive only to the interests of their districts.

Why are predictable exchange rates necessary for transnational trade? (402) A. Some currencies are too valuable to be used in international trade. B. The World Trade Organization requires stable currencies in order to exist. C. traders would be reluctant to do business across borders if currencies fluctuated wildly. D. Consumers need stable exchange rates to purchase domestically-produced goods.

C. traders would be reluctant to do business across borders if currencies fluctuated wildly.

You decide to buy some stock in a foreign company in the hopes that you will earn a higher rate of return than you would by keeping your money under your mattress. What is this is an example of? (349) A. Austerity B. Sovereign lending C.Portfolio investment D. Foreign Direct Investment

C.Portfolio investment

State A decides it wants to support its domestic manufacturers. To do so, it acquires large amounts of the currency of state B so that its own currency remains artificially weakened relative to state B's. This encourages people living in state B to buy goods manufactured in state A. State B could accuse state A of which of the following? A. Going on the gold standard B. Floating its currency C. Pegging its currency D. Currency manipulation

D. Currency manipulation

The agricultural sector illustrates which of the following about the economic relationships between developed and developing countries? (442-443) A. Developed countries work with developing countries to produce the maximum amount of food. B. International organizations have been successful in lowering trade barriers in the agricultural sector. C. Developing countries focus more on manufacturing and leave agricultural production to developed countries. D. Developed countries use their greater economic power to refuse to fully open their agricultural sector to international competition.

D. Developed countries use their greater economic power to refuse to fully open their agricultural sector to international competition.

Which of the following is an argument for why former colonies in North America have achieved more economic development than former colonies in South America have? A. North America was settled by Spain and Portugal, whereas South America was settled by England and France. B. South America has long had a history of popular involvement in politics and voting. C. North America had more natural resources such as gold and silver. D. Early patterns of economic development in North America were more egalitarian than in South America.

D. Early patterns of economic development in North America were more egalitarian than in South America.

Match the currency crisis with the event that helped caused it. (416-419) Caused in part by states borrowing heavily after the creation of the euro--> _______________ A. Mexico 1994 B. East Asia 1997 C. Europe 1992 D. Europe 2011-2015

D. Europe 2011-2015

Which of the following is an example of a bilateral investment treaty? A. The IMF lends money to Greece to prevent the country from defaulting on its debt. B. The world Bank lends money to Senegal at low Interest rates so that Senegal can build a better internal road network. C. Dell builds factories in China for constructing laptops at lower labor costs than in the United Sates. D. France and Germany agree on terms for how companies and business can invest across their borders.

D. France and Germany agree on terms for how companies and business can invest across their borders.

Which of the following was a predecessor to the World Trade Organization (WTO)? (325) A. Doha Round B. Regional Trade Agreements (RTAs) C. European Union (EU) D. General Agreements of Tariffs and Trade Agreements (GATT)

D. General Agreements of Tariffs and Trade Agreements (GATT)

The World Trade Organization regularly publishes information about each member country's trade practices and trade flows. This specific action by the WTO represents which of the following functions that can facilitate cooperation? (325-327) A. Setting Standards of Behavior B. Enforcing Compliance C. Linking concessions D. Monitoring compliance

D. Monitoring Compliance

Which of the following is NOT a reason why oil-producing countries have been unusually successful in forming a strong commodity cartel? (450-452) A. Many oil-producing states share religious and cultural ties. B. A relatively small number of states control a large percentage of the supply. C. There are not many substitutes for oil in the industrial process. D. States that defect from OPEC agreements can be punished by military means.

D. States that defect from OPEC agreements can be punished by military means.

Which of the following is NOT a part of the Washington Consensus? (449-450) A. Trade Liberalization B. Privatization of government-run enterprises C. Fiscal and monetary policies designed to avoid deficits D. Subsidies to domestic industries

D. Subsidies to domestic industries

Canada imposes a tax on imports from China. This is an example of: (324-325) A. Quota B. Most Favored Nation status C. Reciprocity D. Tariff

D. Tariff

Which of the following is not a criticism of the International Monetary Fund (IMF)? (361-363) A. The conditions the IMF attaches to loans harm the poorest citizens of a country B. The IMF violates the sovereignty of nations. C. The IMF is a tool of international financiers. D. The IMF only assists developing countries.

D. The IMF only assists developing countries.

According to the Stopler-Samuelson model of trade, in domestic politics, which of the following don't stand to lose from trade protectionism? (309-310) A. Domestic industries that use foreign imports in production. B. Domestic industries that export goods to other countries C. Domestic consumer. D. The scarce factor of production.

D. The scarce factor of production.

Which countries have been bailed out by the International Monetary Fund (IMF)? A. Greece B. Russia C. Indonesia D. Mexico E. All of the Above

E. All of the Above

(T/F) Because many countries consider subsidies to exporters to be "unfair" trade practices, they have coordinated to set clear standards and definitions of the practice so that all countries can agree whether a trading partner is violating a trade agreement. (321-322)

False

(T/F) Having a strong currency is always better for a country.

False

(T/F) International organizations tend to favor developing countries. (443-445)

False

(T/F) Most individuals and corporations in developed countries invest in developing countries because they believe these investments are less risky than what they can find in their own country. (350-352)

False

(T/F) The 2008 global financial crisis started in Greece. (368-731)

False

(T/F) The Heckscher-Ohlin trade theory can explain why countries frequently trade more with allies than with hostile nations. (299-301, 303)

False

Basic structures necessary for a nation's social and economic activity, such as roads, bridges, telecommunications networks, and power and water supply, are known more generally as what? (429)

Infrastructure

This major international institution acts as the lender of last resort for the international financial system, helping stabilize debtor nations during economic crises. (361)

International Monetary Fund (IMF)

Is a leftist party government in a labor-rich country more protectionist or less protectionist.

Less protectionist

Suppose Ireland offers to sign a free trade agreement with Poland in exchange for Poland signing a human rights treaty. This type of behavior that helps overcome cooperation and coordination problems is known as what? (324)

Linkage

This kind of policy is used by national governments to influence macroeconomic conditions such as unemployment and economic growth. It is based on changes to the interest rate and money supply of an economy. (390-391)

Monetary

Is a leftist party government in a capital-rich country more protectionist or less protectionist.

More protectionist

Would domestic consumers want a weak or strong currency? (393-399)

Strong currency

Would tourists who travel overseas want a strong or weak currency? (393-399)

Strong currency

This major international institution lends out money at low interest rates to developing countries for the purposes of building infrastructure and other such projects.

The World Bank