Question 1 (1 point)

Short of nationalization, a state can use all of the following measures to regulate the operation of externally owned plants except

Question 1 options:

increase local ownership

appeal to public understanding

seek to direct more of the profits into local hands

pass laws requiring a minimum of local content in products made

Question 2 (1 point)

Transnational Corporations (TNCs) that pursue a strategy of "cloning" are

Question 2 options:

duplicating abroad exactly the same activities that they invest in at home

investing in new biotechnology

having the same people run their foreign business that run their business at home

using embodied artificial intelligence to run their foreign operations

Question 3 (1 point)

The last decade has seen a boom in Foreign Direct Investment (FDI) from the third world, that is, in the growth of third world TNCs headquartered in the third world.

Question 3 options:

	True
	False

Question 4 (1 point)

Which factor do market-oriented financial systems not consider a helpful guide to optimal capital allocation?

Question 4 options:

relational ties with firms

stock prices

interest rates

foreign exchange rates

Question 5 (1 point)

The foreign subsidiaries of Transnational Corporations (TNCs) can outcompete indigenous entrepreneurs for all of the following reasons except

Question 5 options:

their ability to purchase production inputs more cheaply

their access to worldwide information

their large bank of capital

their overhead costs

Question 6 (1 point)

Foreign Direct Investment (FDI) in third world economies increased in the early 1980s because

Question 6 options:

fewer profits could be made by investing in the first world

third world countries joined the World Trade Organization (WTO)

primary commodity prices rose

third world countries could not repay their debts and bank lending collapsed

Question 7 (1 point)

The foundation for the post-World War II global monetary system of fixed currency exchanges was laid at

Question 7 options:

Goll Woods

Trillium Woods

Bretton Woods

Brum Woods

Question 8 (1 point)

Which of the following reasons does not explain why many Transnational Corporations (TNCs) see investment in the third world as more risky than in the first world:

Question 8 options:

inadequate infrastructure

costs of locating far from markets

perceptions of political risk

mastering local languages

Question 9 (1 point)

Which is not a practice of Islamic financial systems?

Question 9 options:

the lender shares part of the borrower's earnings

the lender shares part of the borrower's losses

aligning borrowing and lending with religious norms

charging interest on loans

Question 10 (1 point)

Transnational Corporations (TNCs) that pursue a strategy of "geographical specialization"

Question 10 options:

focus on producing maps

hire experts on local and regional geography

divide operations to undertake different tasks in different places

only set up production branches in certain regions

Question 11 (1 point)

Transnational Corporations (TNCs) internal prices never exceed open market prices.

Question 11 options:

	True
	False

Question 12 (1 point)

The attractiveness of Foreign Direct Investment (FDI) in third world economies declined from the late 1960s to the early 1980s because

Question 12 options:

third world economies collapsed

more profits could be made by investing in the first world

third world states nationalized foreign-owned production facilities

investment in primary commodities was more profitable

Question 13 (1 point)

Almost half a century after independence, Foreign Direct Investment (FDI) from the first world to the third world is still shaped by geopolitics and

Question 13 options:

migration patterns

colonial histories

military interventions

leadership attributes

Question 14 (1 point)

The flexible exchange rate system that transformed the global monetary system in the 1970s made the long-run value of debts much _______________.

Question 14 options:

more predictable

more unpredictable

more valuable

less valuable

Question 15 (1 point)

Indirect effects that increase the impact of an initial investment are called

Question 15 options:

enlargers

extenders

magnifiers

multipliers

Question 16 (1 point)

"Transfer pricing" is

Question 16 options:

the price that a Transnational Corporation (TNC) transfers to the consumer

the price that branch plants of a Transnational Corporation (TNC) pay one another for the goods and services they exchange

the price that a Transnational Corporation (TNC) pays to ship goods

the price that a Transnational Corporation (TNC) pays to transfer a decal to its products

Question 17 (1 point)

Balance of payment statistics are sufficient to track the geography of money.

Question 17 options:

	True
	False

Question 18 (1 point)

A Transnational Corporation (TNC)

Question 18 options:

can exert control over production in politically independent countries

cannot exert control over production in politically independent countries

is transnational in name only since its headquarters are in a single country

is limited by the laws of its home country in exerting control over production in other countries

Question 19 (1 point)

"Dead-end" labor-intensive, unskilled, low-wage, and routine assembly jobs created by Foreign Direct Investment (FDI) in third world countries are occupied overwhelmingly by

Question 19 options:

men

children

women

adolescents

Question 20 (1 point)

The playing field governing the international competition for Foreign Direct Investment (FDI) is fair and level.

Question 20 options:

	True
	False