International Economics 17th Edition 17e By Robert Carbaugh Test Bank and Solutions PDF

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Test Bank, Solution Manual, eBook International Economics 17th Edition By Robert Carbaugh.
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Chap01_17e Indicatewhetherthestatementistrueorfalse. 1. Workerssometimesfacedemandsforwagereductionsfromtheiremployers,whichthreatentoexportjobs abroadifwagereductionsarenotaccepted. a. True b. False 2. Asmeasuredbythevalueoftrade,Canada,Mexico,andChinaarethethreetoptradingpartnersoftheUnited States. a. True b. False 3. Ifanationhasanopeneconomy,itmeansthatthenationallowsprivateownershipofcapital. a. True b. False 4. Inthelate1990s,SchwinnInc.closedallofitsbicyclemanufacturingplantsinChinaandmovedthemtothe UnitedStates. a. True b. False 5. The“MadeinAmerica”emblemprintedontelevisionssoldbyElementElectronicsisintendedtoinform consumersofitscommitmenttocreatequalitymanufacturingjobsintheUnitedStates. a. True b. False 6. TheadventofforeigncompetitionforcedKodakInc.togointobankruptcyandtoceaseoperatingasaproducer ofcamerasandfilm. a. True b. False 7. Afirmneedstoreduceitsproductioncosts.Onealternativetomovingtheproductionoverseaswherelaborcost aregenerallyloweristomoveproductiontothesouthernUnitedStateswherenonunionizedworkersaremore plentiful. a. True b. False 8. IntheUnitedStates,tariffsandquotasarecommonlyusedastoolsdesignedtorestricttradeamongthefifty states. a. True b. False 9. CriticsmaintainthatU.S.tradepolicieshavemainlybenefittedlargecorporationsratherthantheaverage Americancitizen. a. True b. False Copyright Cengage Learning. Powered by Cognero.

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Chap01_17e 10.Theterm"economicinterdependence"impliesthatthewealthandsuccessofonecountryimpactsthewealthand successofanothercountry. a.True b.False 11.Thebenefitsofinternationaltradeaccrueintheformsoflowerdomesticprices,developmentofmoreefficient methodsandnewproducts,andagreaterrangeofconsumptionchoices. a.True b.False 12.Comparedtothe1800s,the"opennessratio"oftheU.S.economyhaddeclinedbythe2000s. a.True b.False 13.Openeconomieshavelessfirmturnoverduetomorestablemarkets. a.True b.False 14.Increasedforeigncompetitiontendstoincreaseprofitsofdomesticimport-competingcompanies. a.True b.False 15.Thedevelopmentofdieselenginesandgasturbineshelpedreducetransportationcostsandthusincrease internationaltradeamongnations. a.True b.False 16.Inthelongrun,competitivenessdependsonanindustry'snaturalresources,itsstockofmachineryand equipment,andtheskillofitsworkersincreatinggoodsthatpeoplewanttobuy. a.True b.False 17.Highercostsoftransportationandcommunication,andhighertradebarriers,havecontributedtoincreased globalizationinrecentdecades. a.True b.False 18.Althoughfreetradeprovidesbenefitsforconsumers,itisoftenarguedthatimportprotectionshouldbeprovided todomesticproducersofstrategicgoodsandmaterialsvitaltothenation'ssecurity. a.True b.False 19.Inanopentradingsystem,acountrywillimportthosecommoditiesthatitproducesatrelativelylowcostwhile exportingcommoditiesthatcanbeproducedatrelativelyhighcost. a.True b.False Copyright Cengage Learning. Powered by Cognero.

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Chap01_17e 20.The"opennessratio"oftheU.S.economyin2015wasapproximately15percent,thesameasin1890. a.True b.False 21.Themostprofoundinfluencedrivingglobalizationisanincreasedawarenessofglobalhumanrights. a.True b.False Indicatetheanswerchoicethatbestcompletesthestatementoranswersthequestion. 22.ThelargestamountoftradewiththeUnitedStatesinrecentyearshasbeenconductedwith a.China. b.Germany. c.Canada. d.theUnitedKingdom. 23.TheUnitedStateswaslessopentointernationaltradebetween a.1890and1910. b.1930and1950. c.1890and1950. d.1950and2013. 24.Whichtermdescribestheabilityofafirm/industry,underfreeandfairmarketconditions,todesign,produce,and marketgoodsandservicesthatarebetterand/orcheaperthanthoseofotherfirms/industries? a.competitiveness b.protectionism c.comparativeadvantage d.absoluteadvantage 25.Multilateraltradenegotiationshaveledto a.continuedliberalizationoftradeandinvestment. b.increasedprotectionism. c.highertariffs. d.moreexpensivefinancing. 26.ElementElectronicsdecidedtolocateTVproductioninAmericainsteadofabroad.Whatinfluencedthis decision? a.ElementElectronicswantedtocapitalizeoffthesuccessfultelevisionmanufacturingindustryintheU.S. b.ElementElectronicswantedtocreatequalitymanufacturingjobsintheU.S. c.ElementElectronicswantedtocutbackonlaborcostsbylocatingtheirfactoryinDetroit. d.ElementElectronicswantedtoreducethenumberoftelevisionpartstheyimported.

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Chap01_17e 27.ExportingfirmsintheUnitedStatestypically a.havelessoverallproductivity. b.offerhigherwagestoworkers. c.relyonanunskilledlaborforce. d.donotrelyoncapital. 28.Whichstatementistrueaboutinternationaltrade? a.Itiszero-sumgame. b.Importsalwaysresultindomesticunemployment. c.Tariffsonimportsalwaysprotectdomesticjobs. d.Importsandexportsareconnected;asonefalls,theothergenerallyrises. 29.Economicinterdependenceoccursthrough a.trade. b.protectionism. c.war. d.tariffs. 30.Economistshavegenerallyfoundthateconomicgrowthrateshaveacloserelationtoallofthefollowing EXCEPT a.opennesstotrade. b.education. c.communicationsinfrastructure. d.importrestrictions. 31.Openeconomiesaresubjecttogreaterfirmturnoverbecauseopeneconomies a.tradelessthanclosedeconomies. b.aremorelikelytobeassociatedwithtariffsthanclosedeconomies. c.areassociatedwithincreasedcompetitionascomparedtoclosedeconomies. d.drawalessskilledlaborforcethanclosedeconomies. 32.Today,mostSchwinnbicyclesaremanufacturedin a.China. b.Canada. c.Mexico. d.Germany. 33.Asaneconomyopensuptointernationaltrade,domesticprices a.decrease. b.increase. c.becomestableovertime. d.alignmorewithinternationalprices.

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Chap01_17e 34.Howhastechnologyimpactedtheglobalizationofeconomicactivity? a.Technologicalinnovationhasledtodecreasedmechanizationofeconomicactivities. b.Technologicalinnovationandinventionhaveincreasedproductivity. c.TheriseoftheInternethasincreasedcommunicationcostsintheserviceindustry. d.Technologyhasledtoagreaterseparationbetweenpeopleandenterprises. 35.Duringthe1950s,GeneralMotors(GM)wasresponsibleforabout60percentofallpassengercarsproduced

intheUnitedStates.SomecriticizedGMfor a.encouragingtoomuchmarketcompetition. b.failingtouseeconomiesofscaleinindividualplants. c.acquiringmonopolypowerovertheautomarket. d.failingtosufficientlydominatetheautomarket. 36.Thedefinitionofanopeneconomyisthatit a.allowsprivateownershipofcapital. b.hasflexibleexchangerates. c.hasfixedexchangerates. d.conductstradewithothercountries. 37.Whichofthefollowingisafallacyofinternationaltrade? a.Tradeisazero-sumactivity. b.Exportsincreaseemploymentinexportingindustries. c.Importrestrictionsincreaseemploymentinimport-competingindustries. d.Tariffsandquotasreducetrade. 38.Accordingtohumanrightsactivists,whichorganizationsupportsgovernmentsthatpermitsweatshops? a.TheInternationalOrganizationforStandardization b.TheInternationalMonetaryFund c.TheWorldHealthOrganization d.TheWorldTradeOrganization 39.TheInvacareCorporation,anOhio-basedmanufacturerofwheelchairsandotherhealthcareequipment,

purchasespartsandcomponentsworldwideandsellsitsproductsin80nations.WhicheffecthasInvacare experiencedasaresultofinternationaltrade? a.Thecompany'sOhioworkforceislessstable. b.Design,thepurchasingofparts,andfinalassemblyalloccurabroad. c.Pricesforaluminum,steel,rubber,andothermaterialshaveincreased. d.ThecompanyisbetterabletowithstanddecreasedsalesintheU.S.

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Chap01_17e 40.ThedeclineofKodakInc.inthecameraandfilmbusinessisNOTexplainedby a.theriseofJapaneserivalssuchasFujiPhotoFilmCo. b.thedevelopmentofdigitalcamerasandsmartphonesthatoperateascameras. c.antimonopolylawsthatbrokeKodakupintosmall,competingcompanies. d.constantinnovationandattentiontochangingtrendsinrecreationalphotography. 41.Aprimaryreasonwhynationsconductinternationaltradeisbecause a.mostgoodsandservicesarecheaperabroad. b.theycanacquiretheresourcesneededfordomesticproduction. c.aglobaleconomyhelpsbringproductionandconsumptiontogether. d.certaingoodsandservicescanbeobtainedmoreeconomicallythroughtrade. 42.Openeconomieshave a.lesscompetition. b.lessfirmturnover. c.amorestablelabormarket. d.morefirmsenteringthemarket. 43.Theslogans"BuyAmerican"and"AmericangoodscreateAmericanjobs"reflect a.concernoverthenumberofexportsleavingthecountry. b.concernaboutthethreatofforeigncompetition. c.adesireforfewerimportrestrictions. d.alackofjobsecuritywithinexportingfirms. 44.Thephrase“WhentheUnitedStatessneezes,theeconomiesofothernationscatchacold”wasfirstusedto describetheimpactoftheeconomyoftheUnitedStatesontherestoftheworldattheendofWorldWarII. Thisphraseisnow a.moretrueduetotheimpactofgrowingeconomicinterdependence. b.lesstrueduetotheimpactofgrowingeconomicinterdependence. c.onlytruewhenfollowedbyimpactsintheEuropeanUnion. d.alloftheseareonlytrueinthecaseofaneconomicrecession. 45.Whichstatementaboutglobalizationistrue? a.Ithasledtomorequotasontradearoundtheworld. b.Itisapurelyeconomictermusedtodescribeinterrelatedglobalmarkets. c.Ithasbeenfueledbytrade,immigration,andforeigninvestment. d.Itistheprocessbywhichmorecountriesarebecomingeconomicallyself-sufficientaround

theglobe.

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Chap01_17e 46.NorthCarolinaproducessweetpotatoesinitsrichsoil,butdoesnothavetheclimatetogroworangeswell.Itis correcttosaythatNorthCarolinahasa_________sweetpotatoproductionrelativetoFlorida. a.freetradeagreementwith b.monopolyon c.comparativeadvantagein d.tradeimbalancewith 47.WhatledtothesharplossofmarketshareintheexampleoftheEastmanKodakCompany? a.increaseddesireforhigherqualityproductsubstitutes b.consumerconcernoverEastmanKodak’snearmonopolyintheU.S.markets c.lackofinnovationinemergingdigitaltechnologies d.increasedprofitsofdomesticimport-competingindustries 48.Thefirstwaveofglobalizationwasbroughttoanendby a.theGreatDepression. b.theSecondWorldWar. c.theFirstWorldWar. d.theSmoot-HawleyAct. 49.WhyhastheeconomyoftheUnitedStatesrealizedwavesofglobalization? a.TheUnitedStatesconsistentlyincreasestariffs. b.TheUnitedStateseconomyhasbeenconsistentlyopeningupsincethe1920s. c.Technology,supportedbyAmericaninvestors,drivesproductivity. d.ThetradepolicyoftheUnitedStateshasbeenuneven,resultinginperiodsofmore/lessopennessto internationaltrade. 50.InresponsetotheGreatRecessionof2007–2009,theFederalReserve(Fed)attemptedtogrowtheU.S. economywithapolicycalledquantitativeeasing,whichwouldpumpmoredollarsintotheeconomyandcause interestratestofall.WhichofthefollowingwasNOTacriticismofthepolicy? a.Thepolicycouldleadtoadepreciationinthedollar'sexchangevalue. b.ThepolicycouldimproveAmericancompetitivenessatothernations'expense. c.Therestoftheworld'sproducerscouldseetheirexportsbegintofall. d.Americansgoodswouldbecomemoreexpensiveforforeignconsumers. 51.Smallcountriestendtohavehighermeasuresofopennessthanlargercountriesbecause a.theirproductivityishigher. b.theyaremorereliantoninternationaltrade. c.theyarelessreliantoninternationaltrade. d.theyaremoreeconomicallydiverse.

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Chap01_17e 52.Aclosedeconomyisoneinwhich a.importsexactlyequalexports,sothattradeisbalanced. b.domesticfirmsinvestinindustriesoverseas. c.thehomeeconomyisisolatedfromforeigntrade. d.technologicalinnovationsandimprovementsintheefficiencyofinternationaltransportarehighlyvalued. 53.Specializationisanadvantageof a.large-scaleproduction. b.monopolies. c.smallerproductionruns. d.highwagesforforeignworkers. 54.Mostoftheworld'spopulationnowlivesincountriesthatare a.integratedorbecomingintegratedintoworldmarkets. b.tryingtoovercomeeconomicisolation. c.cuttingbackonforeigninvestment. d.economicallyindependent. 55.EconomistswhosuggestthattheUnitedStatesislosingitscompetitiveedgecitethat a.manufacturingdrivesinnovationandthatmoreAmericanfirmsarechoosingtomanufactureoverseas. b.thequalityofeducationinwesterncountriesisdeclining. c.theUnitedStatesisambivalentabouttechnology. d.theAsiancontinentcontainsmorerawmaterialsthantheUnitedStates. 56.Asuddenshiftfromimporttariffstofreetrademayinduceshort-termunemploymentin a.import-competingindustries. b.industriesthatareonlyexporters. c.industriesthatselldomesticallyaswellasexport. d.industriesthatneitherimportnorexport. 57.Withglobalizationandimportcompetition,U.S.pricesgenerally a.increase. b.decrease. c.remainstable. d.fluctuatewildly. 58.Thenaturalgasturbineisconsideredadriverofglobalizationbecausetheturbine a.increasesefficiency,movinggoodsfromplacetoplace. b.wasdevelopedintheUnitedStates. c.isassociatedwithincreasedtransportationcosts. d.increasesthelaborinputanddecreasesunemployment.

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Chap01_17e 59.Internationaltradegenerally a.decreasesjobs. b.generatesincome. c.decreasesproductivity. d.reducescompetition. 60.Inrecentdecades,theUnitedStateshasbecometiedtoothernationsthrougharisein a.capitalflows. b.labormobility. c.domesticownershipoffinancialassets. d.productionascomparedtoconsumption. 61.Theopennessratioismeasuredbyacountry's a.exportsasapercentofGDP. b.importsasapercentofGDP. c.exportsminusimportsasapercentofGDP. d.exportsplusimportsasapercentofGDP. 62.AllofthefollowinghavebeencriticismsofglobalizationandtradepoliciesEXCEPT a.environmentalconcerns. b.disadvantagesforcorporations. c.unfaircompetitionfromcountriesthatlacklaborstandards. d.supportofcountrieswithhumanrightsviolationslikesweatshops. 63.WhichfactorcontributedtothebankruptcyoftheSchwinnbicyclecompany? a.SchwinnwasunabletosuccessfullypromotetheirbrandorappealtoconsumersintheUnitedStates. b.Schwinnwasnotinnovativeanddidnotaddnewfeaturestotheirbicyclesovertime. c.Tariffswererisingonimportedbicycles. d.Foreigncompetitorswereabletomanufacturecompetitivebicyclesatalowercost. 64.FollowingWorldWarII,theU.S. a.becamelessopen. b.focusedontechnologicaladvancementsinindustry. c.negotiatedincreasesintradebarriers. d.wentthroughaperiodofeconomicisolationism. 65.Whichstatementistrueaboutimportrestrictions? a.Theydecreasethevolumeofexports. b.Theyleadtomorejobsfordomesticworkers. c.Theydecreaseimportsandincreaseexports. d.Theyaremoreconducivetoprosperitythanfreetrade.

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Chap01_17e 66.Whatarethechallengesoftheinternationaltradingsystem?  

67.Whatisthemostimportantfactorthatcontributestocompetitiveness?  

68.Howdoescompetitionimpactproductquality?  

69.Howhasinternationaltradeforceddomesticfirmstobecomemorecompetitive?  

70.Whataretheessentialargumentsinfavoroffreetrade?  

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Chap01_17e AnswerKey 1.True 2.True 3.False 4.False 5.True 6.False 7.True 8.False 9.True 10.True 11.True 12.False 13.False 14.False 15.True 16.True 17.False 18.True 19.False 20.False 21.False 22.a 23.c 24.a 25.a 26.b

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Chap01_17e 27.b 28.d 29.a 30.d 31.c 32.a 33.d 34.b 35.c 36.d 37.a 38.b 39.d 40.c 41.d 42.d 43.b 44.b 45.c 46.c 47.c 48.c 49.d 50.d 51.b 52.c 53.a 54.a Copyright Cengage Learning. Powered by Cognero.

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Chap01_17e 55.a 56.a 57.b 58.a 59.b 60.a 61.d 62.b 63.d 64.b 65.a 66.Theinternationaltradingsystemfacesdealingwithfairlaborstandardsandconcernsabouttheenvironment,among otherchallenges. 67.Keytotheconceptofcompetitivenessisproductivity,oroutputperworkerhour. 68.Internationalcompetitionprovidesdomesticproducerswithastrongincentivetoimprovethequalityoftheirproducts. Also,internationaltradeusuallyweakensmonopolies.Ascountriesopentheirmarkets,theirmonopolyproducersfac competitionfromforeignfirms,whi...