Test Bank For International Economics 19th Edition by
Copyright Cengage Learning. Powered by Cognero. Page 1
, TABLE OF CONTENTS
Chapter 1. The International Economy and Globalization
Globalization of Economic Activity
Waves of Globalization
The United States as an Open Economy
Common Fallacies of International Trade
Is International Trade an Opportunity or a Threat to Workers?
Has Globalization Gone Too Far?
The Plan of This Text
Summary
Key Concepts and Terms
Study Questions
Part 1. International Trade Relations
Part 2. International Monetary Relations
Exploring Further 2.1. Comparative Advantage in Money Terms
Exploring Further 2.2. Indifference Curves and Trade
Exploring Further 2.3. Offer Curves and the Equilibrium Terms of Trade
Exploring Further 3.1. The Specific Factors Theory
Exploring Further 4.1. Offer Curves and Tariffs
Exploring Further 4.2. Trump’s American First Program: Steel and Aluminum Tariffs
Exploring Further 5.1. Tariff-Rate Quota Welfare Effects
Exploring Further 5.2. Export Quota Welfare Effects
Exploring Further 6.1. Welfare Effects of Strategic Trade Policy
Exploring Further 8.1. Government Procurement Policy and the European Union
Exploring Further 8.2. Economies of Scale and NAFTA
Exploring Further 8.3. Will the Euro Fail?
Exploring Further 11.1. Techniques of Foreign-Exchange Market Speculation
Exploring Further 11.2. A Primer on Forex Trading
Exploring Further 12.1. Fundamental Forecasting Regression Analysis
Exploring Further: 13.1. Mechanisms of International Adjustment
Exploring Further 13.2. Exchange Rate Pass-Through
Exploring Further : 15.1. International Banking—Reserves, Debt, and Risk
Copyright Cengage Learning. Powered by Cognero. Page 2
,TEST BANK FOR
International Economics 19th Edition By Robert Carbaugh Copyright 2026
Chapter 1-14
Chapter 1 The International Economy And Globalization
1. Which Of The Following Is A Dimension Of Integration Into The World Economy?
A. Fair Labor Standards.
B. Flexible Exchange Rates.
C. Decreased Foreign Competition.
D. Dependence On Imported Materials.
ANS: D
FEEDBACK: A.
B.
C.
D. Integration Involves Several Dimensions, Including The Dependence On Imported
Materials.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic
STATE STANDARDS: United States - PA - DISC1: - Gains From Trade, Specialization, And Trade
TOPICS: The United States As An Open Economy
KEYWORDS: BLOOM'S: Understand
DATE CREATED: 1/21/2025 3:40 AM
DATE MODIFIED: 1/21/2025 3:40 AM
2. Which Of The Following Is A Disadvantage Of Globalization?
A. Living Standards Can Increase More Rapidly.
B. Global Competition And Cheap Imports Keep A Constraint On Prices.
C. Easier Access To Foreign Investment And Low Interest Rates.
D. Companies Building State-Of-The-Art Factories In Low-Wage Countries.
ANS: D
FEEDBACK: A.
B.
C.
D. American Employees Can Lose Their Competitiveness When Companies Build State-
Of-The-Art Factories In Low-Wage Countries, Making Them As Productive As Those
In The United States.
POINTS: 1
DIFFICULTY: Challenging
QUESTION TYPE: Multiple Choice
Copyright Cengage Learning. Powered by Cognero. Page 3
, HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic
STATE STANDARDS: United States - PA - DISC1: - Gains From Trade, Specialization, And Trade
TOPICS: Has Globalization Gone Too Far?
KEYWORDS: BLOOM'S: Remember
DATE CREATED: 1/21/2025 3:40 AM
DATE MODIFIED: 1/21/2025 3:40 AM
3. 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.
ANS: C
FEEDBACK: A.
B.
C. Globalization Consists Of The Increased Interaction Of Product And Resource
Markets Across Nations Via Trade, Immigration, And Foreign Investment.
D.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic
STATE STANDARDS: United States - PA - DISC1: - Gains From Trade, Specialization, And Trade
TOPICS: Globalization Of Economic Activity
KEYWORDS: BLOOM'S: Understand
DATE CREATED: 1/21/2025 3:40 AM
DATE MODIFIED: 1/21/2025 3:40 AM
4. 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.
ANS: A
FEEDBACK: A. Trade Restrictions That Decrease The Volume Of Imports Will Also Decrease
Exports.
B.
C.
D.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
Copyright Cengage Learning. Powered by Cognero. Page 4
Copyright Cengage Learning. Powered by Cognero. Page 1
, TABLE OF CONTENTS
Chapter 1. The International Economy and Globalization
Globalization of Economic Activity
Waves of Globalization
The United States as an Open Economy
Common Fallacies of International Trade
Is International Trade an Opportunity or a Threat to Workers?
Has Globalization Gone Too Far?
The Plan of This Text
Summary
Key Concepts and Terms
Study Questions
Part 1. International Trade Relations
Part 2. International Monetary Relations
Exploring Further 2.1. Comparative Advantage in Money Terms
Exploring Further 2.2. Indifference Curves and Trade
Exploring Further 2.3. Offer Curves and the Equilibrium Terms of Trade
Exploring Further 3.1. The Specific Factors Theory
Exploring Further 4.1. Offer Curves and Tariffs
Exploring Further 4.2. Trump’s American First Program: Steel and Aluminum Tariffs
Exploring Further 5.1. Tariff-Rate Quota Welfare Effects
Exploring Further 5.2. Export Quota Welfare Effects
Exploring Further 6.1. Welfare Effects of Strategic Trade Policy
Exploring Further 8.1. Government Procurement Policy and the European Union
Exploring Further 8.2. Economies of Scale and NAFTA
Exploring Further 8.3. Will the Euro Fail?
Exploring Further 11.1. Techniques of Foreign-Exchange Market Speculation
Exploring Further 11.2. A Primer on Forex Trading
Exploring Further 12.1. Fundamental Forecasting Regression Analysis
Exploring Further: 13.1. Mechanisms of International Adjustment
Exploring Further 13.2. Exchange Rate Pass-Through
Exploring Further : 15.1. International Banking—Reserves, Debt, and Risk
Copyright Cengage Learning. Powered by Cognero. Page 2
,TEST BANK FOR
International Economics 19th Edition By Robert Carbaugh Copyright 2026
Chapter 1-14
Chapter 1 The International Economy And Globalization
1. Which Of The Following Is A Dimension Of Integration Into The World Economy?
A. Fair Labor Standards.
B. Flexible Exchange Rates.
C. Decreased Foreign Competition.
D. Dependence On Imported Materials.
ANS: D
FEEDBACK: A.
B.
C.
D. Integration Involves Several Dimensions, Including The Dependence On Imported
Materials.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic
STATE STANDARDS: United States - PA - DISC1: - Gains From Trade, Specialization, And Trade
TOPICS: The United States As An Open Economy
KEYWORDS: BLOOM'S: Understand
DATE CREATED: 1/21/2025 3:40 AM
DATE MODIFIED: 1/21/2025 3:40 AM
2. Which Of The Following Is A Disadvantage Of Globalization?
A. Living Standards Can Increase More Rapidly.
B. Global Competition And Cheap Imports Keep A Constraint On Prices.
C. Easier Access To Foreign Investment And Low Interest Rates.
D. Companies Building State-Of-The-Art Factories In Low-Wage Countries.
ANS: D
FEEDBACK: A.
B.
C.
D. American Employees Can Lose Their Competitiveness When Companies Build State-
Of-The-Art Factories In Low-Wage Countries, Making Them As Productive As Those
In The United States.
POINTS: 1
DIFFICULTY: Challenging
QUESTION TYPE: Multiple Choice
Copyright Cengage Learning. Powered by Cognero. Page 3
, HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic
STATE STANDARDS: United States - PA - DISC1: - Gains From Trade, Specialization, And Trade
TOPICS: Has Globalization Gone Too Far?
KEYWORDS: BLOOM'S: Remember
DATE CREATED: 1/21/2025 3:40 AM
DATE MODIFIED: 1/21/2025 3:40 AM
3. 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.
ANS: C
FEEDBACK: A.
B.
C. Globalization Consists Of The Increased Interaction Of Product And Resource
Markets Across Nations Via Trade, Immigration, And Foreign Investment.
D.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
NATIONAL STANDARDS: United States - BUSPROG: Analytic | Technology - BUSPROG: Analytic
STATE STANDARDS: United States - PA - DISC1: - Gains From Trade, Specialization, And Trade
TOPICS: Globalization Of Economic Activity
KEYWORDS: BLOOM'S: Understand
DATE CREATED: 1/21/2025 3:40 AM
DATE MODIFIED: 1/21/2025 3:40 AM
4. 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.
ANS: A
FEEDBACK: A. Trade Restrictions That Decrease The Volume Of Imports Will Also Decrease
Exports.
B.
C.
D.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
Copyright Cengage Learning. Powered by Cognero. Page 4
