Econ 355

An important factor that increased international capital flows in the second half of the nineteenth century was

A) the creation of numerous regional trade agreements.
B) the creation of the World Bank.
C) technological innovations.
D) the creation of the International Monetary Fund.
E) the rapid rate of East Asian economic growth.

Which of the following kinds of agreements between two or more countries would be an example of a shallow integration measure?

A) An agreement to limit subsidies offered to domestic businesses
B) An agreement to use the same environmental standards C) An agreement to accept another nation's certification of architects
D) An agreement to unify customs forms in order to speed up cross-border traffic
E) An agreement to impose the same limits on cartels and monopolies

One of the most important ways in which local instabilities are quickly spread to the international economy is through

A) firms.
B) labor.
C) capital.
D) goods.
E) services.

In most high-income countries, the most highly protected goods from international trade include

A) those goods produced using highly sensitive
technology.
B) software.
C) processed foods, textiles, and apparel.
D) cars and aircraft.
E) military ammunitions.

Which of the following is FALSE?

A) It is possible for an openness index to be greater than 100 percent.

B) Smaller countries tend to have lower openness measures than large countries.

C) The openness index helps to give a sense of how important trade is to an economy.

D) A country that exported $20 billion, imported $30 billion, and had GDP of $100 billion would have an index of openness of 0.5 or 50 percent.

Institutions are

A) the same thing as organizations.

B) a set of rules governing behavior, whether written or not.

C) associations of individuals or groups.

D) always embodied in a written set of rules.

E) only relevant on international issues.

Which of the following is an example of an institution whose primary concern is global stability?

A) NAFTA (North American Free Trade Agreement)

B) IMF (International Monetary Fund)

C) Mekong River Commission

D) Asian Development Bank

E) OPEC (Oil Producing and Exporting Countries)

The international organization that serves as a forum for trade discussions and the development of trade rules is called

A) the IMF.

B) the WTO.

C) the United Nations.

D) the World Bank.

E) Bretton Woods.

One of the strongest motivations for holding the Bretton Woods Conference was to design new international institutions that would

A) contain communism.

B) create a single currency in Western Europe.

C) provide a collective defense security for Western Europe and North America.

D) help countries avoid the mistakes of the 1920s and 1930s.

E) ensure that world prices were not rising too rapidly.

The primary mission of the World Bank today is to

A) provide capital to firms around the world.

B) provide financial assistance for the reconstruction of war-damaged nations.

C) provide capital to underdeveloped countries.

D) help countries manage their exchange rates.

E) provide a safe place for people around the world to put their money.