D)
very broad legal, social, political, and commercial structures that influence economic behavior.
63.
Governments affect international financial relationships through their institutions. These might include:
A)
border controls regulating goods coming into or leaving from the nation.
B)
laws or regulations affecting investment, reserves, or credit.
C)
larger sets of rules that define a general context to which specific laws or regulations conform.
D)
very broad legal, social, political, and commercial structures that influence economic behavior.
64.
What is the difference between an open economy and a closed economy?
A)
A closed economy has sealed borders and allows no tourism or migration.
B)
An open economy has very few restrictions on trade or financial flows.
C)
A closed economy has very tough wage and hour laws and will not tolerate labor unions.
D)
An open economy has lax restrictions on drugs or other illegal activities.
65.
One indicator of international financial openness in advanced countries is that:
A)
defaults by borrowers have decreased significantly.
B)
cross-border financial transactions in advanced nations have increased tenfold.
C)
restrictions on mortgage lending or bank capital requirements have decreased.
D)
governments no longer try to control interest rates.
66.
Since 1970, governments worldwide have:
A)
discouraged trade and raised levels of protection for workers.
B)
discouraged international investment to favor domestic financial markets.
C)
rejected globalization because it makes a nation more vulnerable.
D)
lifted barriers to international capital movements and trade.
67.
In general, we currently classify nations into three categories, depending on the level of economic advancement. These are:
A)
advanced, emerging, and developing.
B)
high-achievers, low-achievers, and infant industry nations.
C)
First World, Second World, Third World.
D)
fully integrated, moderately integrated, and closed.
68.
The advanced nations:
A)
were least open to globalization and free movement of capital.
B)
led the movement toward globalization and openness during the 1980s.
C)
had to compete with the developing nations and finally learned that financial openness was beneficial to their economies.
D)
were not as open to globalization as were the emerging markets.
69.
A consequence of the world movement toward financial integration and openness is:
A)
depreciating exchange rates.
B)
financial interdependence coupled with a tenfold increase in the volume of foreign assets.
C)
a retreat toward safety and heavier regulation of financial flows.
D)
dominance by the United States as being the only destination for investment funds.
70.
Which of the following would count as an emerging market?
A)
Canada
B)
Poland
C)
Ireland
D)
Bangladesh
71.
Which of the following would count as a developing country?
A)
Mexico
B)
Italy
C)
Guatemala
D)
Germany
72.
The list of developed countries includes:
A)
South Korea
B)
Panama.
C)
Estonia.
D)
Poland.
73.
Nations are free to choose and use their own currency and control its value. Normally, they must choose between a ______ regime.
A)
fixed or floating exchange rate
B)
variable or stable exchange rate
C)
controlled or laissez-faire
D)
centrally planned or market-based
74.
What is the eurozone?