The theory of comparative advantage illustrates that specialization can lead to
a. a rise in poverty among many groups of people.
b. an increase in overall consumption and efficiency.
c. greater equality among all people.
d. the rise of powerful international organizations.
The rise in the amount of cross-border movements of goods, money, people, and ideas is known as
a. globalization.
b. international political economy.
c. comparative advantage.
d. balance of trade.
International political economy can be defined as
a. international organizations, such as the International Monetary Fund and the World Bank, that directinternational investments.
b. the comparative advantage industrialized nations have over agriculturally-based nations.
c. the mutual relationship between international politics and international economy.
d. the domestic fiscal and monetary policies developed by sovereign states.
China has accumulated approximately how many U.S. dollars in its foreign currency reserves?
a. 400 million
b. 40 billion
c. 400 billion
d. 24 trillion
Why did global firms not reject China's demand for investing in Chinese companies, so that China could move up the value chain?
a. Because they wanted to avoid access to China's sizeable market
b. In order to take advantage of China's cheap labor force
c. So that China would buy billions of dollars' worth of U.S. government bonds that fund the U.S. budget deficit
d. So that China could continuing taking advantage of the currency market.
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