Unit 2.1 - TCW Review

Subcontracting is the central element of the new world.

• True

• False

Answer explanation

False because it should be new ECONOMY.

Subcontracting is the central element of the new ECONOMY.

The following are the roles of a properly designed International Monetary System EXCEPT.

• To lend order and stability to foreign exchange markets
• To encourage the elimination of balance-of-payments problems
• To guarantee the financial stability of economies.
• To provide access to international credits in the event of disruptive shocks

Refers to a 30-year long process that began at the end of the 1960s as a form of monetary cooperation intended to reduce the excessive influence of the US dollar on domestic exchange rates.

• European Monetary Integration
• European Monetary System
• European Financial Stability Mechanism
• European Financial Stability Facility

A system that forms rules and standards for facilitating international trade among nations.

• Internationalization
• Transnational Corporations
• International Monetary System

It is the major driving forces of economic globalization of the last 100 years. It is also known as Multi-national Corporation.

• Internationalization
• Transnational Corporations
• International Monetary System

Which DOES NOT define Economic Globalization?

• Refers to the increasing interdependence of world economies as a result of the growing scale of cross-border trade of commodities and services.
• Reflects the continuing expansion and mutual integration of market frontiers and is an irreversible trend for the economic development in the whole world at the turn of millennium.
• Process that creates an organic system of world economy.
• Happens if a country cannot efficiently produce an item and obtain it by trading with another country that can.

Marketization is a restructuring process that enables enterprises to operate as market-oriented films.

• True
• False

A permanent fund created by the European Union (EU) to provide emergency assistance to member states within the Union.

• European Monetary Integration
• European Monetary System
• European Financial Stability Mechanism
• European Financial Stability Facility

The World Trade Organization deals with the global rules of trade between nations with main function of ensuring that trade flows smoothly, predictably, and freely.

• True

• False

Allows wealthy countries to use their resources such as labor, technology, or capital more efficiently. Gives consumers and countries the opportunity to be exposed to goods and services not available in their own countries.

• International Trade
• Global Trade
• Trade Barriers
• Trade Policies