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MANA 1301 EXAM 1

Terms in this set (60)

Economic policy changes that promote private sector development, competitive markets, market-pricing, freer trade, and deregulation is (are) called economic _____.
reforms
A stock exchange where long-term financial instruments such as stocks and bonds can be bought and sold is called a(an) _____.
capital market
The International Finance Corporation performs which of the following functions?
Provide loans and take equity position in private companies of developing countries and works toward developing capital markets in those economies
The period of transformation that adjusts lifestyles to make the Internet and wireless technologies part of everyday life is called _____.
the digital era
The International Development Association performs which of the following functions?
Provides long-term low-interest social sector and infrastructure loans to the poorest members utilizing foreign aid funds provided by rich nation members
According to the Chapter 1 opening vignette, which of the following is a major global concern, especially to international organizations such as the International Monetary Fund, the World Bank, and the World Trade Organization?
Nationalist or protectionist policies that curtail world trade
Joseph was born in 1993. He grew up accessing the Internet via many types of wireless devices and now uses the Internet for Skype and to buy books and download video games. Joseph is a member of the _____ generation.
digital
Which of these encompasses the socio-economic reform process of eliminating trade, investment, cultural, information technology, and political barriers across countries, which could lead to increased economic growth and geo-political integration and interdependence among nations of the world?
Globalization
The dawn of globalization can be traced back to the _____ century.
15th
_____ refers to a fundamental global shift in which developing economies that were once dependent upon industrialized countries for economic advancement, begin to solidly grow based on their own underlying economic strengths.
Decoupling
Economic development that meets the needs of the present generation without compromising the ability of future generations to meet their own needs, whether environmentally, socially, or economically is referred to as _____ development.
sustainable
The global system of exchange rates and international payments that enables countries and their citizens to buy goods and services from each other is known as _____.
the International Monetary Fund
The World Trade Organization is based in _____.
Geneva, Switzerland
Which of the following is NOT a developmental institution closely associated with the World Bank?
OEDC
A cashier who places a customer's change on the counter so that he/she may verify the amount of change best demonstrates which of the following?
Transparency
Suppose Bangladesh government recently passed regulations requiring a certain percentage of the value of import be sourced domestically. This regulation would be known as a _____.
domestic content provision
Porter identified two crucial variables outside the diamond that play an important role in the competitiveness of nations: chance and _____.
government
All commercial transactions, both private and public between nations of the world, are referred to as _____.
international business
If a car dealer in the United States imports a $50,000 BMW from Germany, the 2.5 percent tariff or $1,250 that the dealer must pay the U.S. government will be passed on to the customer. This is an example of a(n) _____ tariff.
ad valorem
Of the following, which is NOT in the socio-economic category of managed trade?
embargoes
_____ refers to an external shock or development that could drastically change or hasten the course of economic development.
chance
The earliest and simplest form of international business is _____.
trade
When the value of exports exceeds the value of imports in a country, it is called _____.
trade surplus
_____ is a theory of international trade that supports the premise that a nation could only gain from trade if it had a trade surplus.
mercantilism
By 2014, _____ nations had become members of the WTO.
160
Of the following, which is NOT listed in the text as a benefit to consumers of international trade?
Increased cooperation among countries of the world
Of the following countries, which is identified as a high income country?
Belgium
At the end of WWII, three major international organizations were established to accelerate trade and economic growth among countries of the world. They are: the IMF, the World Bank, and _____.
GATT
Import quotas are also known as _____.
quantitative restrictions
An agreement in which an exporter of goods or services to another country commits to import goods or services of corresponding value from that country is referred to as _____.
countertrade
_____ includes a multitude of economic and/or political steps that may be taken by member states of a union to increase their global competitiveness, including preferential trade access.
regional integration
According to the text, how many stages are there to regional economic integration?
four
For regional integration to be successful, member countries need to undertake _____.
spatial transformations
According to the text, which of the following is the first step to regional integration?
a free trade area
The study of principles that govern the efficient spatial allocation of economic resources and the resulting consequences is referred to as ______.
economic geography
If three countries: A, B, and C are attempting regional integration, the appropriate approach for these countries should involve which of the following fundamentals?
Compensate the least fortunate
According to the text, which is NOT a region with small markets located far from world markets?
Iran
As of now, the fate of EU candidate country _____ is still uncertain, a case which has been highly controversial.
Turkey
According to the text, all of the following are EU member states EXCEPT:
Ukraine
NAFTA is a comprehensive free-trade agreement among Canada, the United States, and _____.
Mexico
Since 2005, _____ has been the United States' second largest trade partner.
China
In what year was ASEAN established?
1967
A growing ASEAN concern is the economic ascendancy of _____.
China
What is the purpose of the ASEAN Regional Forum (ARF)?
To discuss major security issues in the region
Which of the following is an objective of ASEAN?
To promote regional peace and stability
A statement of account that shows all transactions between the residents of one country and the rest of the world for a given period of time is called a(n) _____.
balance of payments
Balance of payments is generally split into _____ major components.
two
When a country imports more than it exports, it has a(n) _____.
trade deficit
John as an investor requires the added return for risk associated with a security or asset. This added return would be called a(n) _____.
risk premium
The current account consists of _____ subaccounts.
four
The activities of consumers and businesses in the economy with respect to the trade balance, services balance, income balance, and net transfers is called a(n) _____.
current account
The net of investment income from abroad and investment payments to foreigners is called the _____.
income balance
The financial account of the BOP consists of _____ subaccounts.
three
A global network of international banks and currency traders that trade different countries' currencies is called a(n) _____.
foreign exchange market
If you were evaluating a system that sets the values of major currencies based on their demand and supply in world currency markets, it should be described as the _____.
independent floating exchange rate system
There are about _____ different currencies that are used to make international payments for goods and services.
150
A monetary system with varying degrees of government intervention to maintain a range of acceptable values against other currencies is called _____.
dirty float currency
Country A is an emerging economy and Country B is a developed economy with hard currency. Country A's currency which is less stable in value than Country B's currency and is pegged to Country B's currency values. Country A's currency would be described as a _____ currency.
soft
A theory stating that a basket of goods should have approximately the same prices across different countries is referred to as _____.
purchasing power parity
Buying goods in a lower priced market and selling them in a higher priced market to make profits is called _____.
arbitrage
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