* not completed

. The World Bank characterizes globalization as having undergone three main phases. During which phase was it 'in retreat'?

During the eighteenth and nineteenth centuries correct incorrect

During the inter-war period in the twentieth century correct incorrect

After the end of the Second World War correct incorrect

None of the above, as globalization has been steadily increasing since the eighteenth century correct incorrect

* not completed

. The theory of 'absolute advantage':

Best describes a situation where there are two countries, A and B, and potentially two goods which can be traded, X and Y. A is absolutely better at producing X and B is absolutely better at producing Y, and so if A specializes in producing X and B in Y, and they trade together, then both countries will gain. correct incorrect

Best describes the global strategy of businesses who always seek to gain an absolute advantage over their rivals. correct incorrect

Explains why developed countries have a competitive advantage over poorer countries. correct incorrect

Best describes a situation where there are two countries, A and B, and potentially two goods which can be traded, X and Y. If A was absolutely better at producing both X and Y compared to B then there would be no advantage in A trading with B. correct incorrect

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. Assume that there are two countries, A and B, and that they can both produce two goods, X and Y. The theory of comparative advantage predicts that:

Trade can only take place if country A has an absolute advantage in producing one of the goods, and country B has an absolute advantage in producing the other. correct incorrect

Trade can take place even if country A has an absolute advantage in both providing that B chooses to specialize in the good in which it has the least comparative disadvantage, and A specializes in the one in which it has the greater comparative advantage. correct incorrect

Trade between A and B will only take place if both countries are at a comparatively similar stage in the development of their economies. correct incorrect

None of the above. correct incorrect

* not completed

. The term 'late industrialization' refers to:

The need to delay industrialization because of its threats to the environment. correct incorrect

The problems faced by many developing countries as they seek to catch up to the levels of development of richer countries. correct incorrect

The belief that it is too late for many countries to industrialize. correct incorrect

The fact that we are now entering a post-industrial world. correct incorrect

* not completed

. Which of the perspectives outlined in the chapter would be most closely associated with the 'Washington Consensus'?

Neoclassical perspective correct incorrect

Structuralist perspective correct incorrect

Radical perspective correct incorrect

Dependency perspective correct incorrect

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. Which of the following policies would not have been supported by people who would have regarded themselves as part of the 'Washington Consensus' tradition?

Trade liberalization correct incorrect

Openness to foreign direct investment correct incorrect

Fiscal discipline correct incorrect

Gradual reduction of controls investment correct incorrect

* not completed

. What are the implications of the Prebisch-Singer Hypothesis?

Developing countries should seek to export raw materials and labour-intensive goods. correct incorrect

That because the price elasticity of demand for primary goods is relatively inelastic, it is pointless for developing countries to seek to export these. correct incorrect

That because the income elasticity of demand for primary goods is inelastic, over time there will be a decline in primary commodity prices and therefore the incomes derived from primary goods. correct incorrect

Trade will always be mutually beneficial between a developed and a developing country as long as they both seek to exploit their comparative advantages. correct incorrect

* not completed

. Which of the following international organizations is now responsible for developing and maintaining the system of international trade rules and dealing with trade disputes?

The IMF correct incorrect

The World Bank correct incorrect

The UN correct incorrect

The WTO correct incorrect

* not completed

. Which of the following economists is regarded as having developed the theory of comparative advantage?

Adam Smith correct incorrect

David Ricardo correct incorrect

Joseph Stiglitz correct incorrect

Amartya Sen correct incorrect

* not completed

. What is meant by the term 'asymmetric information'?

Information that cannot be measured correct incorrect

Information that is not yet available correct incorrect

Information that is freely accessible to all people correct incorrect

Where information is not equally shared and the consequence of this is that one party might lose out because it does not have the full access to the information that another party has correct incorrect

* not completed

. What is 'hot money'?

Flows of money across national boundaries that are the result of illegal activity correct incorrect

The use of the $US as the most acceptable form of global currency correct incorrect

Flows of money across national borders in the hope of speculative gains correct incorrect

The buying of gold as a way of protecting against risk in that it can always be melted down and changed into gold jewellery correct incorrect

* not completed

. What are the NICs?

Newly independent countries correct incorrect

Non-investing countries correct incorrect

Newly invented currencies (such as the euro) correct incorrect

Newly industrialized countries correct incorrect