WGU D080 Study Guide V1
1. What is a benefit of foreign direct investment?: The inflow of capital benefits global and
local economies
2. What is the result of the existence of multinational businesses?: Economic integration
among countries
3. What is a potential influence of the existence of multinational corporations (MNCs) on
international relations?: Improves relations between countries wherethe MNC operates
4. What is an accurate characterization of the relationships between multina-tional
corporations (MNCs) and the host country governments in which theyoperate?: The
relationships are mixed because MNCs can cause, but also solve, problems for the host
country.
5. Which level of economic integration presents an alliance of all policies bya common
organization?: Political union
6. Which level of economic integration is formed when trade barriers are removed between
member countries but there is no mutual policy on tradingwith nonmember countries?: Free
trade area
7. Which level of economic integration permits the free movement of capital,labor and
technology from member countries?: Common market
8. Which economic integration stage offers economic collaboration by re- moving trade
barriers between member countries and establishing a mutualtrading policy with
nonmembers?: Customs union
9. Which drawback is involved when regional agreements are created?: -
Member countries will trade less with nonmember countries.
10. What is a benefit of creating a regional economic integration agreement?-
: Improved financial growth
11. What is an advantage of regional economic integration?: Flexibility onlabor movement
develops job opportunities.
12. What is a disadvantage of regional economic integration?: The exclusionof external
countries reduces global free trade.
13. Central America Free Trade Agreement (CAFTA-DR): United StatesCosta Rica,
the Dominican Republic,El Salvador,
Guatemala,Honduras, Nicaragua.
14. Which agreement was implemented in 1994 and helped form a free-trade zone between
Canada, the United States, and Mexico by decreasing tariffs andtrade barriers?: NAFTA
15. Which agreement was established in 1988 and now has both political and economic
,goals to keep peace and stimulates economic growth in SouthAmerican countries?:
MERCOSUR
16. ASEAN includes: Malaysia, Thailand, Indonesia, Singapore, the Philippines,Myanmar
(Burma), Vietnam, Cambodia, Laos, and Brunei.
17. Which economic actors are suppliers of U.S. dollars?: Foreign firms export-ing to the U.S.
18. exchange rate regime: The way in which an authority manages its currencyin relation to
other currencies and the foreign exchange market
19. floating exchange rate: A system where the value of currency in relation toothers is
allowed to freely fluctuate subject to market forces
20. fixed exchange rate system: A system where a currency's value is tied to the value of
another single currency, to a basket of other currencies, or to anothermeasure of value, such as
gold
21. pegged exchange rate: A currency system that fixes an exchange rate arounda certain
value, but still allows fluctuations, usually within certain values, to occur
22. Which economic actor benefits as the U.S. dollar weakens?: A U.S. in-vestor abroad
23. Which economic actor benefits as the U.S. dollar strengthens?: A foreignfirm exporting
to the U.S.
24. Which exchange rate regime allows a currency's value to fluctuate ac-cording to the
foreign exchange market?: Floating
25. antitrust laws: Consumer protection policy used to limit unfair business prac-tices
related to competition and control of prices
26. perfectly competitive market: A market in which no individual economic actorcan affect
the price of a good
27. Sherman Antitrust Act: The first American antitrust policy. Established in1890, it dealt
with limiting the power of price-controlling cartels
28. competition laws: See antitrust laws.
29. antimonopoly laws: See antitrust laws.
30. A farmers market has many vendors and consumers who all sell and buythe same
produce at the same price.
Which type of market is represented?: Perfect competition
31. A sole, national telephone company was found violating antitrust lawsand was forced to
separate into regional companies.
What caused the violation of the antitrust laws?: Reduced competition
32. Many countries from several geographic regions are accused of dumpingsteel into the
, U.S. market at unfairly low prices.
Which entity can the United States appeal to in order to correct this apparentmarket
manipulation?: World Trade Organization
33. Paris Agreement: Universal global climate deal aimed at keeping long-termglobal
temperature increase at below 2°C
34. National Environmental Policy Act (NEPA): American environmental act from the 1970s
that requires federal agencies to prepare environmental impact statements for every
recommendation or report
35. The Environmental Protection Agency (EPA): American agency establishedin the 1970s
with the goal of monitoring the environmental practices of industry
36. Deepwater Horizon oil spill: A 2010 industrial accident that is considered thelargest oil
spill in history
37. Oil Pollution Act of 1990: U.S. law that strengthened the Environmental Pro-tection
Agency's ability to prevent and respond to oil spills
38. The Clean Water Act: A US federal law governing water pollution
39. Which of these agreements or treaties was to combat increased temper-atures of global
climate change?: Paris
40. Which governmental entity was created to provide regulatory authorityregarding
pollution by industry?: Environmental Protection Agency
41. Which type of duty is required to take care of the collective environmentacross the
nation?: Shared
42. Globalization: Worldwide interconnections in virtually every sphere of activity
including the spread of products, technology, information, and job opportunities.
Globalization can result in blurred boundaries between nations, organizations, andinvestors
43. trade: The action of buying and selling goods and services
44. capital: Financial assets such as funds but also equipment, facilities, and othermeans of
production
45. outsource: To obtain goods or services from an outside or foreign supplier
46. nongovernmental organizations (NGOs): Not for profit organizations that areindependent
of the government and are active in humanitarian causes
47. Which type of globalization refers to the international movement of goods,capital, and
services?: Economic
48. patents: Protects inventions and improvements to existing inventions for a limitedperiod of
time in exchange for detailed public disclosure of those inventions
49. copyrights: A government authority or license giving the owner of an inventionthe right
to exclude others from making or selling the invention for a set period of time
50. trademarks: Protection for any word, name, symbol, device, or any combination used in
1. What is a benefit of foreign direct investment?: The inflow of capital benefits global and
local economies
2. What is the result of the existence of multinational businesses?: Economic integration
among countries
3. What is a potential influence of the existence of multinational corporations (MNCs) on
international relations?: Improves relations between countries wherethe MNC operates
4. What is an accurate characterization of the relationships between multina-tional
corporations (MNCs) and the host country governments in which theyoperate?: The
relationships are mixed because MNCs can cause, but also solve, problems for the host
country.
5. Which level of economic integration presents an alliance of all policies bya common
organization?: Political union
6. Which level of economic integration is formed when trade barriers are removed between
member countries but there is no mutual policy on tradingwith nonmember countries?: Free
trade area
7. Which level of economic integration permits the free movement of capital,labor and
technology from member countries?: Common market
8. Which economic integration stage offers economic collaboration by re- moving trade
barriers between member countries and establishing a mutualtrading policy with
nonmembers?: Customs union
9. Which drawback is involved when regional agreements are created?: -
Member countries will trade less with nonmember countries.
10. What is a benefit of creating a regional economic integration agreement?-
: Improved financial growth
11. What is an advantage of regional economic integration?: Flexibility onlabor movement
develops job opportunities.
12. What is a disadvantage of regional economic integration?: The exclusionof external
countries reduces global free trade.
13. Central America Free Trade Agreement (CAFTA-DR): United StatesCosta Rica,
the Dominican Republic,El Salvador,
Guatemala,Honduras, Nicaragua.
14. Which agreement was implemented in 1994 and helped form a free-trade zone between
Canada, the United States, and Mexico by decreasing tariffs andtrade barriers?: NAFTA
15. Which agreement was established in 1988 and now has both political and economic
,goals to keep peace and stimulates economic growth in SouthAmerican countries?:
MERCOSUR
16. ASEAN includes: Malaysia, Thailand, Indonesia, Singapore, the Philippines,Myanmar
(Burma), Vietnam, Cambodia, Laos, and Brunei.
17. Which economic actors are suppliers of U.S. dollars?: Foreign firms export-ing to the U.S.
18. exchange rate regime: The way in which an authority manages its currencyin relation to
other currencies and the foreign exchange market
19. floating exchange rate: A system where the value of currency in relation toothers is
allowed to freely fluctuate subject to market forces
20. fixed exchange rate system: A system where a currency's value is tied to the value of
another single currency, to a basket of other currencies, or to anothermeasure of value, such as
gold
21. pegged exchange rate: A currency system that fixes an exchange rate arounda certain
value, but still allows fluctuations, usually within certain values, to occur
22. Which economic actor benefits as the U.S. dollar weakens?: A U.S. in-vestor abroad
23. Which economic actor benefits as the U.S. dollar strengthens?: A foreignfirm exporting
to the U.S.
24. Which exchange rate regime allows a currency's value to fluctuate ac-cording to the
foreign exchange market?: Floating
25. antitrust laws: Consumer protection policy used to limit unfair business prac-tices
related to competition and control of prices
26. perfectly competitive market: A market in which no individual economic actorcan affect
the price of a good
27. Sherman Antitrust Act: The first American antitrust policy. Established in1890, it dealt
with limiting the power of price-controlling cartels
28. competition laws: See antitrust laws.
29. antimonopoly laws: See antitrust laws.
30. A farmers market has many vendors and consumers who all sell and buythe same
produce at the same price.
Which type of market is represented?: Perfect competition
31. A sole, national telephone company was found violating antitrust lawsand was forced to
separate into regional companies.
What caused the violation of the antitrust laws?: Reduced competition
32. Many countries from several geographic regions are accused of dumpingsteel into the
, U.S. market at unfairly low prices.
Which entity can the United States appeal to in order to correct this apparentmarket
manipulation?: World Trade Organization
33. Paris Agreement: Universal global climate deal aimed at keeping long-termglobal
temperature increase at below 2°C
34. National Environmental Policy Act (NEPA): American environmental act from the 1970s
that requires federal agencies to prepare environmental impact statements for every
recommendation or report
35. The Environmental Protection Agency (EPA): American agency establishedin the 1970s
with the goal of monitoring the environmental practices of industry
36. Deepwater Horizon oil spill: A 2010 industrial accident that is considered thelargest oil
spill in history
37. Oil Pollution Act of 1990: U.S. law that strengthened the Environmental Pro-tection
Agency's ability to prevent and respond to oil spills
38. The Clean Water Act: A US federal law governing water pollution
39. Which of these agreements or treaties was to combat increased temper-atures of global
climate change?: Paris
40. Which governmental entity was created to provide regulatory authorityregarding
pollution by industry?: Environmental Protection Agency
41. Which type of duty is required to take care of the collective environmentacross the
nation?: Shared
42. Globalization: Worldwide interconnections in virtually every sphere of activity
including the spread of products, technology, information, and job opportunities.
Globalization can result in blurred boundaries between nations, organizations, andinvestors
43. trade: The action of buying and selling goods and services
44. capital: Financial assets such as funds but also equipment, facilities, and othermeans of
production
45. outsource: To obtain goods or services from an outside or foreign supplier
46. nongovernmental organizations (NGOs): Not for profit organizations that areindependent
of the government and are active in humanitarian causes
47. Which type of globalization refers to the international movement of goods,capital, and
services?: Economic
48. patents: Protects inventions and improvements to existing inventions for a limitedperiod of
time in exchange for detailed public disclosure of those inventions
49. copyrights: A government authority or license giving the owner of an inventionthe right
to exclude others from making or selling the invention for a set period of time
50. trademarks: Protection for any word, name, symbol, device, or any combination used in
