MNB3701 Assignment 1 QUIZ (COMPLETE ANSWERS) Semester 1 2025 (884490) - DUE 1 April 2025

MNB3701 Assignment 1 (COMPLETE ANSWERS) Semester 1 2025 (884490) - DUE 1 April 2025; 100% TRUSTED Complete, trusted solutions and explanations. For assistance, Whats-App 0.6.7-1.7.1-1.7.3.9. Ensure your success with us. .. 1. Which of the following is a key argument against free trade agreements? a) An increase in factory employment b) A reduction in European Union membership c) Exports exceeding imports in a country’s economy d) Job losses due to competition from foreign markets 2. What is the best definition of globalization? a) Collective opposition to oppression and exploitation b) A shift towards a more interdependent world economy c) An attempt to achieve equilibrium in a country’s political economy d) The spread of democracy across the world 3. Which of the following is NOT a key driver of globalization? a) Changes in technology b) The growing middle-class in developing countries c) Advances in transportation d) Protectionist policies of governments 4. The primary function of GATT was to: a) Protect countries from high taxation b) Promote dominance in manufacturing for member nations c) Lower barriers to free flow of goods, services, and capital d) Encourage state-owned enterprises 5. The primary goal of the World Bank is to: a) Encourage economic dispersion of production b) Alleviate poverty and encourage economic development c) Monitor partial exportation of goods d) Regulate international production costs 6. The Bretton Woods agreement led to: a) The end of fixed exchange rates b) A set of rules facilitating international trade c) A freely floating currency system d) The introduction of the Euro 7. An independent float in currency arrangements refers to: a) Pegged exchange rates b) Exchange rate determination through market forces c) Government intervention in currency markets d) Currency tied to gold reserves 8. What is the main role of globalization in international markets? a) Increasing market integration b) Supporting protectionist policies c) Favoring local content laws d) Restricting international investments 9. Porter’s diamond model does NOT include which of the following determinants? a) Conditions of available resources b) State of domestic industries c) Demand position of the country d) Political stability 10. Why do anti-globalization protests occur? a) To promote interdependence among economies b) To oppose selective application of capitalism c) To increase foreign investment d) To demand stronger trade tariffs 11. If a company continues polluting despite ethical concerns, which ethical theory applies? a) Cultural relativism b) Friedman’s doctrine c) Utilitarian ethics d) The naïve immoralist 12. Corporate social responsibility (CSR) focuses on: a) Supporting NGOs in local communities b) Resolving banking crises c) Impact of business on society and environment d) Disclosure of company profits 13. Which of the following is NOT an objective of foreign direct investment (FDI)? a) Reducing risks in global markets b) Expanding economic growth c) Avoiding local government regulations d) Accessing new consumer markets 14. What caused the abandonment of the gold standard? a) The oil crisis in 1973 b) The creation of the World Bank c) Increased confidence in fiat currency d) The rise of cryptocurrency 15. Which of the following does NOT contribute to foreign exchange risk? a) Political instability b) Economic conditions c) Price of gold d) Exchange rate fluctuations 16. What is an antidumping policy used for? a) Restricting illegal imports b) Protecting domestic producers c) Regulating multinational corporations d) Encouraging free trade 17. Which of the following is NOT a feature of the international equity market? a) Provides a currency market free of government regulation b) Serves as a capital source for investors c) Deals with fixed-rate bonds d) Controls national monetary policies 18. The international monetary system is primarily concerned with: a) Regulating exchange rates b) Promoting economic growth c) Managing national debts d) Setting interest rates 19. Which of the following is an example of a trade barrier? a) Lower tariffs b) Free trade zones c) Quotas on imported goods d) Bilateral trade agreements 20. The economic case for regional integration includes: a) Enhancing infrastructure spending b) Reducing fiscal regulations c) Securing additional gains from free trade d) Preventing jobs from relocating abroad 21. What is a key challenge of regional economic integration? a) Economic stability b) Inequality c) Job creation d) Market expansion 22. The USA’s withdrawal from NAFTA could result in: a) Free trade between the US and Mexico b) Increased restrictions on trade c) More investment in the Mexican economy d) Economic growth 23. Which of the following is an example of foreign exchange exposure? a) Political exposure b) Market exposure c) Translation exposure d) Industry exposure 24. What is the primary function of the WTO? a) Promote free trade b) Regulate oil prices c) Protect multinational corporations d) Restrict developing nations 25. What is the primary goal of currency swaps? a) Lower interest rates b) Reduce exchange rate risks c) Increase market liquidity d) Avoid taxes 26. Why do firms use transfer pricing? a) Reduce tax liabilities b) Avoid government intervention c) Increase market share d) Improve employee morale 27. What is one negative effect of import tariffs? a) Reduced government revenue b) Higher consumer costs c) Increased domestic efficiency d) Lower production costs 28. What is a key feature of an advanced economy? a) High corruption b) Technological innovation c) Political instability d) High inflation 29. Which of the following is NOT a feature of a market economy? a) Private ownership b) Central government planning c) Free enterprise d) Consumer choice 30. The concept of globalization is most associated with: a) Nationalism b) Free trade c) Tariff regulations d) Protectionism 31. What is an example of a tangible resource? a) Brand reputation b) Intellectual property c) Machinery d) Leadership skills 32. What is an example of absolute advantage? a) A country producing more goods than another with the same resources b) A country exporting more than it imports c) A company reducing costs in the supply chain d) A country having a stronger currency 33. What is a key risk of foreign direct investment? a) Higher profits b) Market expansion c) Political instability d) Increased employment 34. Which of the following is NOT an informal institution? a) Cultural norms b) Ethics c) Legal system d) Social behavior 35. What is an example of offshore outsourcing? a) Moving production to another country b) Expanding local operations c) Hiring domestic workers d) Acquiring a local competitor 36. Which of the following is a key component of the balance of payments? a) Trade surplus b) Foreign exchange rate c) Current account and capital account d) Interest rates 37. A company that fully owns and operates a facility in another country without partnerships is engaging in: a) Licensing b) Exporting c) A wholly-owned subsidiary d) Franchising 38. Which of the following is NOT a common strategy for global expansion? a) Licensing agreements b) Strategic alliances c) Reducing supply chain costs d) Greenfield investment 39. Why do companies engage in strategic alliances? a) To eliminate competition b) To access local market knowledge c) To monopolize industries d) To reduce operational transparency 40. Which of the following best defines the theory of absolute advantage? a) The ability of a country to produce a good at a lower opportunity cost b) The ability of a country to produce more of a good using fewer resources c) The ability of a country to import goods more efficiently d) The ability of a company to set trade policies 41. Which of the following trade agreements created the world’s largest free trade zone? a) European Union b) ASEAN c) NAFTA d) MERCOSUR 42. What is a major disadvantage of high import tariffs? a) They increase foreign competition b) They decrease government revenues c) They increase domestic consumer prices d) They make domestic industries more competitive 43. What is the role of a sovereign wealth fund? a) To regulate banking interest rates b) To manage a country’s surplus financial reserves c) To finance trade agreements d) To reduce currency volatility 44. What is one of the primary goals of international business? a) To promote regional economic disparity b) To increase cultural segregation c) To maximize profit through global markets d) To restrict competition from developing nations 45. Which of the following best describes a free trade zone? a) A market where only state-owned businesses can operate b) An area where goods can be imported and exported without tariffs c) A regulatory framework that limits trade d) A region controlled by one multinational corporation 46. The Foreign Corrupt Practices Act (FCPA) primarily aims to: a) Regulate corporate taxation b) Prevent bribery in international business c) Increase foreign investments d) Reduce trade deficits 47. Which economic system combines aspects of both market and command economies? a) Free-market economy b) Traditional economy c) Mixed economy d) Capitalist economy 48. What is the primary purpose of the International Monetary Fund (IMF)? a) Regulating stock markets b) Providing loans to countries in economic distress c) Controlling global oil prices d) Increasing import tariffs 49. The major disadvantage of foreign direct investment (FDI) is: a) Lack of employment opportunities b) Potential loss of economic sovereignty c) Decreased market access d) Limited government involvement 50. Which of the following is an example of currency devaluation? a) Increasing tariffs on imported goods b) Reducing the value of a country's currency to boost exports c) Pegging a currency to a foreign currency d) Strengthening a currency to attract investors