26. An example of an international financial and trade institution : 1800959
26. An example of an international financial and trade institution is:
A. World Bank.
B. International Monetary Fund.
C. World Trade Organization.
D. All of the above.
27. Representation on the World Bank’s board of directors is based on:
A. The size of the member nation’s population.
B. The size of the member nation’s economy.
C. The size of the member nation’s land mass.
D. Equal representation of all member nations.
28. The loan policies of the World Bank:
A. Are generous to developing countries seeking to expand their educational systems.
B. Impose strict restrictions on debtor countries which can sometimes lead to hardship.
C. Are generally only available to rich nations.
D. Are open to any company conducting business abroad.
29. The primary purpose of the International Monetary Fund is to:
A. Lend foreign currency to member countries.
B. Exchange one currency for another.
C. Consolidate the debt facing third world nations.
D. Collect the interest on loans made by the World Bank to third-world nations.
30. The purpose of the World Trade Organization is to:
A. Impose barriers to free trade among nations.
B. Eliminate barriers to free trade among nations.
C. Develop trading partnerships between rich and poor nations.
D. Decrease globalization and free trade.
31. Under the World Trade Organization’s most-favored nation rule:
A. All import restrictions imposed by other nations on their goods are illegal unless a cultural waiver is issued.
B. All import restrictions are illegal unless proven scientifically.
C. Most-favored nations can impose heavy tariffs on other nations.
D. Most-favored nations can oppose the dumping of goods by any nation in their home market.
32. The theory of comparative advantage states that:
A. Productivity rises more quickly when countries produce goods and services for which they have a natural talent.
B. Productivity decreases when countries produce goods and services based on their natural resources.
C. All countries start out on an equal playing field.
D. Countries that operate under a policy of isolationism have a comparative advantage.
33. An individual who is a supporter of globalization would argue that it helps the developing world by:
A. Giving entrepreneurs access to foreign investment funds to support economic development.
B. Allowing new ideas and technological innovations to spread quickly.
C. Providing people in developing countries with more jobs.
D. All of the above.
34. What U.S. company is the best example of using globalization to reduce the price of its products?
B. Toys R Us.
35. A critic of globalization might argue that companies decide to manufacture in China mainly because of China’s:
A. Strict law enforcement.
B. High environmental standards.
C. Weak health and safety regulations.
D. Strong worker unions.