Question

1. Which two phrases represent the views of globalization? Choose two answers.
   1. A pendulum that swings from one extreme to another
   2. A competition among key financial centers and markets
   3. A continuing force sweeping through the world
   4. An unplanned result of corporate responses to a variety of opportunities
   5. A trading of goods and services between the most and least regulated countries
2. What are two trade barriers? Choose two answers.
   1. Nontariffs
   2. Foreign languages
   3. The ocean
   4. Tariffs
   5. Shipping
3. What is the effect of tariff on a particular product for the country imposing the tariff?
   1. Increases domestic production of the product
   2. Decreases the deadweight cost of the country
   3. Increases domestic consumption of the product
   4. Decreases government trade revenues
4. Which benefits come to the host country as a result of foreign direct investment? Choose two answers.
   1. Sovereign stability
   2. Capital outflow
   3. Domestic resource allocation
   4. Creation of domestic jobs
5. Which characteristic of firm resources affects competitive dynamics?
   1. Tractability
   2. Divisibility
   3. Imitability
   4. Intensity
6. Which characteristic of firm resources affects competitive dynamics, according to the VRIO framework?
   1. Variability
   2. Optimization
   3. Interpretability
   4. Rarity
7. Which theory is the forerunner to modern-day protectionism?
   1. Free trade
   2. Mercantilism
   3. Absolute advantage
   4. Comparative advantage
8. Which aspect creates the daily changes in a country’s exchange rate?
   1. Currency supply and demand
   2. Level of domestic output
   3. Balance of payments
   4. Domestic employment level
9. Which risk must a corporation minimize to effectively manage short-term currency fluctuations?
   1. Alpha risk
   2. Transaction risk
   3. Beta risk
   4. Asymmetric risk
10. Which term describes using currency derivatives to reduce potential transaction, translation, and economic risks of currency movements that could lead to losses for a firm or investor?
    1. An exchange position
    2. A short position
    3. Speculating
    4. Hedging
11. What is the most effective method to limit foreign exchange rate exposure for future trade payments?
    1. Floating transaction
    2. Forward transaction
    3. Short transaction
    4. Cross-currency transaction
12. What type of advantage do companies receive when operating in favorable areas within a given country?
    1. Labor-specific
    2. Capital-specific
    3. Location-specific
    4. Mineral-specific
13. Which entrant has the opportunity to free ride on first-mover investments?
    1. Simultaneous mover
    2. Later mover
    3. Early mover
    4. Laggard
14. Which strategy for entering a foreign market has the highest degree of risk?
    1. Licensing
    2. Wholly-owned subsidiary
    3. Joint-venture
    4. Foreign acquisition
15. Which mode of entry provides advantages to a multinational firm that can be transferred within the firm at very low cost?
    1. Indirect exports
    2. Externalization
    3. Licensing
    4. Ownership
16. Which pillar of uncertainty refers to the internalized behavior of an individual’s belief and values?
    1. Regulatory
    2. Environmental
    3. Formal
    4. Cognitive
17. What are three pillars that support format regulatory institutions? Choose 3 answers.
    1. Norms
    2. Attitudes
    3. Cultures
    4. Laws
    5. Regulations
    6. Rules
18. What are three aspects of a command economy? Choose 3 answers.
    1. Government-owned production
    2. Private property
    3. Freedom of enterprise
    4. Planned system
    5. Privately owned production
    6. Inefficient allocation of goods
19. What is one of the core propositions underpinning an institutions-based view of global business?
    1. Governments should provide tariff protection
    2. A political system should establish controls of the financial sector
    3. Managers and corporations make rational decisions within their formal and informal framework
    4. Investment in infrastructure provides a multiplier effect in a developing economy.
20. Which type of system allows businesses to be privately owned with a strong individualistic profit orientation?
    1. Democracy
    2. Totalitarianism
    3. Command economy
    4. Market economy
21. Which countries based their legal traditions on either common law or civil law?
    1. Russia
    2. Egypt
    3. Saudi Arabia
    4. United Arab Emirates
    5. Iran
22. Which type of good has well-established property rights?
    1. Common goods
    2. Club goods
    3. Public goods
    4. Private goods
23. What is the primary purpose of establishing property rights?
    1. To provide economic benefit to society as a whole
    2. To allow society to take advantage of an innovator’s creation
    3. To allow an owner to derive benefit from the property
    4. To provide the right to the design of a new product.
24. Which economic system is utilized by most countries?
    1. A communist economy
    2. A command economy
    3. A state-owned enterprise economy
    4. Mixed economy
25. Which body guides economic activity in a command economy?
    1. The United Nations
    2. A Public-private partnership
    3. The government
    4. A board of directors
26. What does the value of the marginal product of labor for a perfectly competitive, profit-maximizing firm equal?
    1. Loss
    2. Rate
    3. Wage
    4. Cost
27. Which action should a perfectly competitive firm take if the marginal cost is greater than marginal revenue?
    1. Decrease the output
    2. Increase the output
    3. Raise the product price
    4. Reduce the product price
28. Which condition must be satisfied for a competitive firm to continue to produce in the short run?
    1. Total revenue covers price
    2. Total revenue covers total variable costs
    3. Total revenue covers marginal costs
    4. Total revenue covers total fixed costs
29. What will a competitive firm do in the short run if its average variable cost exceeds price?
    1. It will shut down
    2. It will prevent other firms from entering the industry
    3. It will produce to make an economic profit
    4. It will expand production
30. How does the shape of a monopoly’s demand curve compare to that of a perfectly competitive firm?
    1. The monopoly’s demand curve is horizontal and the competitive firm’s demand curve is vertical.
    2. The monopoly’s demand curve is downward sloping and the competitive firm’s demand curve is horizontal.
    3. The monopoly’s demand curve is horizontal and the competitive firm’s demand curve is downward sloping
    4. The monopoly’s demand curve is vertical and the competitive firm’s demand curve is horizontal.
31. Which price will a monopoly set?
    1. Below marginal cost
    2. Equal to marginal cost
    3. Above marginal cost
    4. Equal to a fraction of marginal cost
32. Which condition determines the profit maximizing output for a monopolist?
    1. Marginal revenue equals marginal cost
    2. Marginal revenue equals average fixed cost
    3. Price equals average fixed cost
    4. Price equals average total cost
33. What is a characteristic of monopolistic competition?
    1. One seller
    2. Easy market entry
    3. Identical products
    4. Limited customer base
34. Which statement is true about the prisoner’s dilemma?
    1. It is easy to conspire
    2. It is not applicable to the real world.
    3. It is difficult to maintain cooperation
    4. It is beneficial for both to avoid cooperation
35. How does oligopoly represent a prisoner’s dilemma?
    1. Every game presents zero-sum alternatives
    2. Interactions between firms and the government are reflected in this game
    3. It depicts the difficulty in maintaining cooperative agreements
    4. Strategic decisions faced by prisoners mirror those firms face in competitive agreements
36. What is used to measure the opportunity cost of one good when it is being compared to another good?
    1. The slope of the budget constraint
    2. The marginal rate of distribution
    3. The slope of demand curve
    4. The competition effect
37. What will an increase in income cause to a consumer’s budget constraint?
    1. A pivot along the horizontal axis
    2. A pivot along the vertical axis
    3. A shift outward, parallel to its initial position
    4. A shift inward, parallel to its initial position
38. What happens to the nominal interest rate and the quantity of money if the Federal Reserve lowers the reserve requirement? Choose two answers.
    1. The interest rate increases
    2. The interest rate decreases
    3. The quantity of money increases
    4. The quantity of money decreases
39. What happens to the market equilibrium quantity and price if supply increases and demand remains the same? Choose 2 answers.
    1. Quantity increases
    2. Quantity decreases
    3. Price increases price decreases
40. Which factor influences price elasticity of demand?
    1. Money supply
    2. Annual interest rate
    3. World prices
    4. Availability of close substitutes
41. What concept measures how much the quantity supplied responds to change in price?
    1. Cross-price elasticity of demand
    2. Value elasticity of supply
    3. Price elasticity of supply
    4. Income elasticity of demand
42. Which type of market operation does the federal Reserve use to increase the money supply when it buys bonds from the public in the nation’s bond market?
    1. Closed market operation
    2. Money market operation
    3. Value market operation
    4. Open market operation
43. If the government increases purchases by $10 billion, the aggregate demand for goods and services could rise by more than $10 billion. What effect does this illustrate?
    1. Exchange rate effect
    2. Multiplier effect
    3. Crowding out effect
    4. Automatic stabilizer effect
44. Which fiscal policies will result in a rightward shift of the aggregate demand curve?
    1. Raising corporate tax rates
    2. Expanding government purchases
    3. Lowering the reserve requirement
    4. Lowering the discount rate
45. Which area in the graph represents consumer surplus?
    1. A
    2. B
    3. C
    4. D
46. Which statements describe gross domestic product (GDP)?
    1. GDP is no longer used to monitor the performance of the overall economy
    2. GDP is the most used measure of a country’s economic wellbeing
    3. GDP measures expenditures but not income
    4. GDP measure the market value of all final goods and services
47. A man is willing to pay $300 for a pair of boots and he purchases the boots for $200. Wht does this indicate?
    1. The producer surplus will equal the consumer surplus
    2. The consumer surplus will be $100
    3. The price of the boots will fall due to market forces
    4. The producer surplus will be $100
48. A U.S. citizen has been living and working in Canada for the last 10 years. Where is the value of the individual’s production counted?
    1. U.S. GDP and Canada’s GDP
    2. U.S. GN and Canada’s GNP
    3. U.S. GDP only
    4. U.S. GNP and Canada’s GDP.
49. What is the effect of an import tariff on the domestic price of bananas?
    1. The price creases
    2. The price matches the global market price
    3. The price remains the same.
    4. The price increases.
50. Classify the effect of a tariff on each situation as increases or decreases. Answer options may be used more than once or not at all.
    1. Demand for foreign produced goods – increasing/decreasing
    2. The domestic quantity of goods produced - increasing/decreasing
    3. Domestic quantity demanded - increasing/decreasing
    4. Domestic government revenue - increasing/decreasing

Answer 1

1- Which two phrases represent the views of globalization

• A pendulum that swings from one extreme to another. (a)
• A continuing force sweeping through the world. (c)

These two are defined to be the views of globalization.

Along with this the the third view of globalization is " A long run evolution since the dawn of history of human."

2- What are the two trade barriers.

• Nontariffs
• tariffs

These are the two trade barriers and one more trade barrier is Quotas

Sorry to say As per HomeworkLib guidelines we are told to answer only 1 question but i did 2 for you

Please post questions one by one

Please comment for doubts

Thanks