GSCM 311 MIDTERM QUIZZES QUESTIONS WITH
VERIFIED ACCURATE ANSWERS
Milton Friedman would most likely agree with which statement?
a) Increased tariffs incentivises countries to import foreign goods
b) Countries should make more of an effort to purchase goods from their own country in
order to decrease poverty.
c) In general, too much foreign trading can lead to unstable global markets and illegal
trading.
d) Countries should open their borders to trade and cut down on tariffs to create
cooperation for trade around the world. - Answers -Countries should open their borders
to trade and cut down on tariffs to create cooperation for trade around the world.
According to Milton Friedman, access to cheaper labor internationally has increased the
wage gap between high-skilled and low-skilled jobs in advanced economies.
True
False - Answers -True
Egypt can produce cotton sheets efficiently but can't produce plastic very efficiently.
According to competitive advantage Egypt should...
Import both cotton sheets and plastic
Export cotton sheets and import plastic
Export plastic and import cotton sheets
Export both cotton sheets and plastic - Answers -Export cotton sheets and import
plastic
Which free trade agreement would create the world's largest trading bloc?
Mercosur
European Union
RECP (Regional Comprehensive Economic Partnership)
USMCA - Answers -RECP (Regional Comprehensive Economic Partnership)
China wants to grow its GDP larger than its neighboring countries. In doing so they
choose to control trade and begin exporting more goods than they import. This activity
is best defined as.
Globalization
Mercantilism
Nationalism
Bretton Woods System - Answers -Mercantilism
Which of the following is an argument against Globalization
Hyper globalization has decreased nationalism through the world
Over saturation of workers in the global market
The divide of money between the richest and poorest people in the world is decreases
, 70% of households have seen flat or falling incomes in the last decade - Answers -70%
of households have seen flat or falling incomes in the last decade
Protectionism is
the practice of businesses and governments colluding to protect fledgling industries
the practice of businesses applying import quotas to protect their supply chains from
unethical practices
the practice of shielding a country's domestic industries from foreign competition by
taxing imports
the practice of reducing tariffs with other countries to protect trading relationships. -
Answers -the practice of shielding a country's domestic industries from foreign
competition by taxing imports
"Creative destruction" , where industries undergo dramatic changes or are replaced by
new industries in response to changing consumer preferences and innovation, results in
a demand for a labor market that is...
More flexible
Highly skilled
Cheaper
Larger - Answers -More flexible
Who is/was Thomas Friedman?
Someone who contributed to the development of electricity as a power source leading
to some electric-powered manufacturing and the electric telegraph which revolutionized
communication
Someone who specialized and divided labor, helping to spark a second Industrial
Revolution in the latter part of the 19th century and early 20th century
Someone who observed the world has moved from periods of being round (where trade
barriers are high) to periods of being flat (where barriers to trade are lowered)
Someone who organized the Kerosine oil industry making cheap, bright light available
to the masses - Answers -Someone who observed the world has moved from periods
of being round (where trade barriers are high) to periods of being flat (where barriers to
trade are lowered)
The Bretton Woods System became the foundation of world trade and created financial
commodity interdependence based on the EURO.
True
False - Answers -False
VERIFIED ACCURATE ANSWERS
Milton Friedman would most likely agree with which statement?
a) Increased tariffs incentivises countries to import foreign goods
b) Countries should make more of an effort to purchase goods from their own country in
order to decrease poverty.
c) In general, too much foreign trading can lead to unstable global markets and illegal
trading.
d) Countries should open their borders to trade and cut down on tariffs to create
cooperation for trade around the world. - Answers -Countries should open their borders
to trade and cut down on tariffs to create cooperation for trade around the world.
According to Milton Friedman, access to cheaper labor internationally has increased the
wage gap between high-skilled and low-skilled jobs in advanced economies.
True
False - Answers -True
Egypt can produce cotton sheets efficiently but can't produce plastic very efficiently.
According to competitive advantage Egypt should...
Import both cotton sheets and plastic
Export cotton sheets and import plastic
Export plastic and import cotton sheets
Export both cotton sheets and plastic - Answers -Export cotton sheets and import
plastic
Which free trade agreement would create the world's largest trading bloc?
Mercosur
European Union
RECP (Regional Comprehensive Economic Partnership)
USMCA - Answers -RECP (Regional Comprehensive Economic Partnership)
China wants to grow its GDP larger than its neighboring countries. In doing so they
choose to control trade and begin exporting more goods than they import. This activity
is best defined as.
Globalization
Mercantilism
Nationalism
Bretton Woods System - Answers -Mercantilism
Which of the following is an argument against Globalization
Hyper globalization has decreased nationalism through the world
Over saturation of workers in the global market
The divide of money between the richest and poorest people in the world is decreases
, 70% of households have seen flat or falling incomes in the last decade - Answers -70%
of households have seen flat or falling incomes in the last decade
Protectionism is
the practice of businesses and governments colluding to protect fledgling industries
the practice of businesses applying import quotas to protect their supply chains from
unethical practices
the practice of shielding a country's domestic industries from foreign competition by
taxing imports
the practice of reducing tariffs with other countries to protect trading relationships. -
Answers -the practice of shielding a country's domestic industries from foreign
competition by taxing imports
"Creative destruction" , where industries undergo dramatic changes or are replaced by
new industries in response to changing consumer preferences and innovation, results in
a demand for a labor market that is...
More flexible
Highly skilled
Cheaper
Larger - Answers -More flexible
Who is/was Thomas Friedman?
Someone who contributed to the development of electricity as a power source leading
to some electric-powered manufacturing and the electric telegraph which revolutionized
communication
Someone who specialized and divided labor, helping to spark a second Industrial
Revolution in the latter part of the 19th century and early 20th century
Someone who observed the world has moved from periods of being round (where trade
barriers are high) to periods of being flat (where barriers to trade are lowered)
Someone who organized the Kerosine oil industry making cheap, bright light available
to the masses - Answers -Someone who observed the world has moved from periods
of being round (where trade barriers are high) to periods of being flat (where barriers to
trade are lowered)
The Bretton Woods System became the foundation of world trade and created financial
commodity interdependence based on the EURO.
True
False - Answers -False
