30 Questions
Which of the following is true about foreign aid from the US?
The World Bank provides aid by lending money
What is the main benefit for EDCs in the arrangement where the World Bank provides aid to LDCs?
Increased economic growth
What is the main reason for the rapid growth of Newly Industrialized Countries (NICs)?
Investments in human and physical capital
What has been happening to China's GDP over time?
It has been increasing
What has been happening to the rate of growth of the Chinese economy recently?
It has been decreasing
What are the two most common forms of limiting trade?
Tariff and quota
Which organization replaced GATT in 1995?
WTO
What is the main purpose of GATT?
To reduce tariffs and other trade barriers
What is the main purpose of the IMF?
To regulate international money supplies
Which trade agreement started as an alliance of coal and steel interests in 1950?
EU
What is the main purpose of NAFTA?
To reduce tariffs and other trade barriers
What is the role of the WTO?
To negotiate free trade deals
Which one of these is a characteristic of Economically Developed Countries (EDCs)?
Technologically advanced economy
Which one of these is a characteristic of Newly Industrialized Countries (NICs)?
Rapid growth in GDP and GDP per capita
Which one of these is a reason for lower life expectancy in LDCs?
Access to food and healthcare
Which one of these is a characteristic of Least Developed Countries (LDCs)?
Low GDP and GDP per capita
What is one of the major barriers to development in LDCs?
Limited natural resources
What type of economy do LDCs have?
Traditional economy
Which of the following accurately defines the balance of trade?
Exports minus imports
What does the balance of payments measure?
Goods, services, money spent, travel, and investments
What determines the exchange rates?
Supply and demand of money
Where are exchange rates published daily?
Wall Street Journal
What does the equation $0.7437 \times 300$ represent?
Exchange rate of Canadian dollars to US dollars
What does the equation $\text{{Exchange rate}} \times \text{{Cost in Canada}}$ calculate?
Cost of a coat in the US
Which of the following best describes globalization in economic terms?
The interdependence of nations around the globe fostered through free trade.
What is the definition of supply chain?
The network between a company and its suppliers to produce and distribute a specific product to the final buyer.
What is the practice of basing some of a company's processes or services overseas, so as to take advantage of lower costs called?
Offshoring
What is the practice of obtaining goods or services from an outside or foreign supplier, especially in place of an internal source called?
Outsourcing
Which of the following is an example of offshoring?
All of the above.
Which of the following is an example of outsourcing?
IBM hires an Indian company to develop software.
Discover how foreign aid can promote development and benefit economically developed countries (EDCs). Explore the sources of aid, such as private organizations like the Red Cross and the Rockefeller Foundation, as well as international economic organizations like the World Bank. Learn about the arrangement in which the World Bank borrows money from EDCs and lends it to less economically developed countries (LDCs), and uncover the advantages that EDCs can gain from this arrangement.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
