Quiz 11

According to some 2018 UN estimates, due to the globalization of labor, how many workers work outside of their home countries?

244 million

Which of the following goods provides benefits that are shared by all, and from which no one can be selectively excluded?

A collective good

A country specializes in producing only items that have the lowest opportunity cost rather than producing more costly items simply because it can. Which of the following advantages does this country seek?

A comparative advantage

Which of the following industries does the United States still heavily subsidize?

Agriculture

Which of the following is an example of intra-firm trade?

An American shoe company purchases laces from its affiliate located in Australia.

What is an infant industry?

An industry that is not yet strong enough to compete effectively in the global marketplace

The U.S. suspects that Japan was selling vehicles for less money than they cost to manufacture. Which of the following could the U.S. impose to counter Japan's sale of cheaper vehicles?

Antidumping duties

Scholars have become skeptical of the effectiveness of cessation of trade or financial ties because they are rarely successful as a substitute for warfare. What are these cessations of trade or financial ties called?

Economic sanctions

Which of the following quotas does a country establish when it unilaterally declares that only a specific amount of a particular product can be brought in from other countries?

Import quotas

In the discipline of international relations, what are nontariff barriers to trade that may be hidden in government policies not directly related to trade called?

Murky protectionism

Which of the following trade strategies is NOT considered protectionist?

Nondiscrimination

Which of the following is an example of trade policy of protectionism?

Nontariff barriers are used to restrict imports.

It is easier to move capital than it is for a labor pool to relocate to another country. Which of the following practices are multinational corporations inclined to engage in to decrease costs?

Outsourcing

After a country signed the General Agreement on Tariffs and Trade (GATT), it could lower its trade barriers. Which of the following could that country expect from trading partners that also entered into the agreement?

Reciprocity

Which type of agreements are often considered a replacement for the World Trade Organization because, with fewer states involved, they are easier to implement and are often encouraged by influential industrial sectors?

Regional trade agreements

Which of the following statements is accurate according to the most-favored nation (MFN) principle?

Tariff preferences granted to one state must be granted to all others.

Which of the following statements is true about the modern definition of mercantilism?

The modern definition of mercantilism developed as a response to the rise in liberalism.

What is the term for the difference between growth rates in trade and gross domestic product (GDP)?

Trade integration

Which of the following principles did the General Agreement on Tariffs and Trade (GATT) adopt by requiring that all regulations that inhibit trade be clearly communicated to its members?

Transparency

When the U.S. assumes the role of a hegemon, it provides stability that benefits everyone; however, not all beneficiaries share the cost of maintaining a stable system. Which dilemma is the US faced with?

Collective action

Which school of thought claims that a comparative advantage shows that trade benefits all parties and that free trade will enable all countries to achieve economic progress together?

Commercial liberalist

What is the term for the transnationalization of the production process, in which finished goods rely on inputs from multiple countries outside their final market?

Globalization of production

Which of the following occurs when a French handbag designer has labels printed in China, leather straps sewn in Italy, the final assembly completed in Thailand, and the finished product marketed in Germany?

Globalization of production

What was the name of the meeting that resulted in changing the General Agreement on Tariffs and Trade (GATT) to the World Trade Organization (WTO)?

Uruguay Round

When the United States collaborated with Japan and Honk Kong in the early 1960s to protect domestic producers of textiles from cheap cotton imports, which of the following was created with the two countries that restricted exports of textiles and apparel?

Voluntary export restrictions