Globalization- Chapter 6, 7, 8

Usually when a tariff is applied by a government to protect their domestic industry it has the consequence of:

• raising the cost of imported products.

• raising the cost of exported products

• lowering the cost of imported products.

• lowering the cost of exported products.

A subsidy is a government payment made:

• to a domestic importer

• to a domestic producer

• to a foreign exporter

• to a foreign producer

When governments intervene in international trade they often are trying to:

• restrict the intervention of goods

• restrict the imports of services

• adopt policies that promote exports

• protect domestic producers and jobs from foreign competition

_______ occurs when a firm invests directly in facilities to produce and/or market a product in a foreign country.

• Exporting

• Importing

• Foreign direct investment

• Fixed capital formation

The _______ refers to the total accumulated value of foreign-owned assets at a given time.

• flow of FDI

• outflow of FDI

• stock of FDI

• inflow of FDI

The__________________ is that FDI has both benefits and costs.

• radical view

• free market view

• pragmatic nationalist view

• economist view

This trade agreement involves Canada, USA and Mexico.

• CAFTA

• CUSMA

• MERCOSUR

• CARICOM

Which of these is the least integrated level of economic integration?

• A common market

• A free trade area

• An economic union

• A customs union

MERCOSUR originated in 1988 as a free trade pact between:

• Chile and Peru

• Japan and Korea

• Ecuador and Columbia

• Brazil and Argentina

Cambodia, Indonesia, Laos, Malaysia, Vietnam and others formed

• APEC

• ASEAN

• OECD

• OPEC