10 (D)

Compare global trade patterns over time and examine the implications of globalization, including outsourcing and free trade zones.

Which of the following is the most likely explanation for the amount of trade with United States' largest trade partner?

A The top trade partner has a very low standard of living, making good inexpensive.

B The top trade partner border the United States, and most of its population lives within 100 miles of the US.

C The Panama Canal makes trade with the top trade partner possible.

D China sells more to the United States than the United States sells to China.

Which statement provides an important reason why countries and regions specialize in their economic activities?

A They become more self-sufficient.

B They do not wish to compete.

C They have different productive resources.

D They are unable to overcome trade barriers.

The goal which led to the formation of both the (NAFTA) and the European Union (EU) is -

A to keep communism out of Western Europe

B to reduce environmental pollution

C to increase economic cooperation between member nations

D to eliminate global climate change North American Free Trade Agreement

Which phrase best completes the flow chart?

A Higher production costs

B Growth of global trade

C Higher tariff rates

D Decreased use of consumer goods

What trade implication of globalization does this cartoon make?

A Sneakers sold in more developed nations are frequently made of inferior materials.

B Child labor in less developed nations in used to produce goods for developed nations.

C Workers in less developed nations receive higher wages than those in more developed nations.

D Shoe manufacturers should build their factories in the United States.

The potential power of the member nations of OPEC lies within their –

A potential influence in tropical regions

B control of access to important religious sites

C military control over strategic waterways

D economic influence over industrialized nations

When companies choose to only focus on their core service and/or product, they will often hire other companies to handle other responsibilities related to their business. An example might be a computer company that wants to focus on the development of better computers will hire an accounting business to handle payroll. These other businesses often are located in other parts of the world where labor costs are cheaper.

What economic concept in being described above?

A Government quotas

B Outsourcing (Offshoring)

C Supply side economics

D Supply side economics

Globalization has led to a rapid increase in which of the following?

A water stress

B international trade

C trans boundary pollution

D arithmetic population density

Which of the following terms describes a business that has operations all over the world?

A trade bloc

B common market

C mirco-enterprise

D multinational corporation

Which of the following best explains the pattern of foreign investment (trade) illustrated in the chart above?

A The expansion of command economies

B Advances in transportation, telecommunications, and infrastructure technology

C The use of gold as a standard currency in international trade.

D An increase in global conflict and violent war caused by nationalism in undeveloped nations.

A major benefit for nations that join trade organizations, such as the European Union, is -

A that they will also be part of a military alliance which will guarantee security.

B a growing and developing economy because of reduced tariffs.

C an increase in taxes collected on goods entering the country.

D increased isolation that will protect the country's cultural identity.

As more developed nations increase the amount of tax free trade -

A they also increase the number of outsourced jobs to nations with lower labor costs.

B they increase the number of tariffs they place on trading partners

C more people will tend to move into rural areas and have large families

D the cost of living tends to increase, causing poverty in a majority of the people.