Unit Test: International Trade in the Modern World
Name: _______________________ Date: _______________________ 100 100
BBB4M1 – Unit 2 Test
International Trade in the Modern World
Part A: True and False (15 Marks) / 15
Answer the following questions with true (T) or false (F). Correct the false statements
T
T
1.___ T
T
Positive effects of globalization include: improved human rights, increased productivity, and innovation. 2.___ F
F
Trade agreements are beneficial because they eliminate trade barriers and encourage foreign investment. 3.___ The North American Free Trade Agreement (NAFTA) is advantageous for Canada because manufacturing jobs have been sent to Mexico where labour is cheaper.
T
T
T – Losing manufacturing jobs to Mexico, because of cheap labour is a disadvantage because it decreases the manufacturing sector in Canada, losing skilled and unskilled labour jobs. 4.___ T
T
A common currency decreases the risk of exchange rate fluctuations. 5.___ F
F
The Group of Eight (G8) and Group of Twenty (G20) discuss macroeconomic issues such as economic growth, trade liberalization, and helping developing countries. 6.___ Organizations such as the United Nations (UN) do not concern themselves with economic issues. Instead, they only focus on human rights and international peace.
T
T
T – The UN is highly involved in the international economy. They are responsible for organizations that affect international business. They also endeavour to improve economic conditions throughout the world. 7.___ T
T
International Trade is not always beneficial and can lead to cultural identity issues. 8.___ F
F
International Trade can be beneficial by attracting foreign investment in the domestic market. 9.___ Global sourcing in an effective way of increasing the cost to produce a product.
T
T
T – Global sourcing actually decreases the cost of production by moving production locations to areas where the cost of labour is cheaper. 10.___ A
BBB4M1 – Unit 2 Test
International Trade in the Modern World
Part A: True and False (15 Marks) / 15
Answer the following questions with true (T) or false (F). Correct the false statements
T
T
1.___ T
T
Positive effects of globalization include: improved human rights, increased productivity, and innovation. 2.___ F
F
Trade agreements are beneficial because they eliminate trade barriers and encourage foreign investment. 3.___ The North American Free Trade Agreement (NAFTA) is advantageous for Canada because manufacturing jobs have been sent to Mexico where labour is cheaper.
T
T
T – Losing manufacturing jobs to Mexico, because of cheap labour is a disadvantage because it decreases the manufacturing sector in Canada, losing skilled and unskilled labour jobs. 4.___ T
T
A common currency decreases the risk of exchange rate fluctuations. 5.___ F
F
The Group of Eight (G8) and Group of Twenty (G20) discuss macroeconomic issues such as economic growth, trade liberalization, and helping developing countries. 6.___ Organizations such as the United Nations (UN) do not concern themselves with economic issues. Instead, they only focus on human rights and international peace.
T
T
T – The UN is highly involved in the international economy. They are responsible for organizations that affect international business. They also endeavour to improve economic conditions throughout the world. 7.___ T
T
International Trade is not always beneficial and can lead to cultural identity issues. 8.___ F
F
International Trade can be beneficial by attracting foreign investment in the domestic market. 9.___ Global sourcing in an effective way of increasing the cost to produce a product.
T
T
T – Global sourcing actually decreases the cost of production by moving production locations to areas where the cost of labour is cheaper. 10.___ A