Chapter 09

A  inflation rates

B  taxation and the method of transportation of goods to and from the country

C  fiscal policy and the language to be used in negotiations

D  monetary policy and trade policy

A  financial

B  industrial

C  agricultural

D  service

A  They act as agents of intergovernmental organizations.

B  They are “citizens of the world,” beholden to no government.

C  Their actions frequently reflect states’ national interests.

D  National governments act as agents of NGOs.

A  Foreign direct investment involves investments such as owning a factory, company, or real estate in a foreign country, whereas indirect portfolio investment involves such things as taking loans from a foreign company.

B  Foreign direct investment involves actions such as trading in the currency of a foreign country, whereas indirect portfolio investment involves such things as buying stocks and bonds or making loans to a foreign company.

C  Foreign direct investment involves investments such as owning a factory, company, or real estate in a foreign country, whereas indirect portfolio investment involves such things as buying stocks and bonds or making loans to a foreign company.

D  Foreign direct investment involves making loans to a foreign company, whereas indirect portfolio investment involves taking loans from a foreign company.

A  the European Union bailing out Portugal and Spain during the recent debt crisis

B  Greece adopting austerity measures during the recent debt crisis

C  the United States decreasing deficit spending during the last financial crisis

D  the United States increasing deficit spending during the last financial crisis

A  Monetary policy can cause inflation, whereas fiscal policy contributes to standing wealth.

B  Monetary policy is the favored approach of the United States to managing the economy, whereas fiscal policy is the favored approach of European countries.

C  Monetary policy is set by national governments, whereas fiscal policy is set by the World Bank.

D  Monetary policy is government policy about printing and circulating money, whereas fiscal policy is government policy about spending and taxation.

A  due to bad investments

B  borrowing to pay for government budget surpluses

C  due to a trade deficit

D  to create greater standing wealth

A  has had a trade deficit since the early 1980s

B  is as strong relative to other countries as it was in the 1950s

C  has had high unemployment since the mid-1990s

D  was once the world’s leading debtor state, but is now the leading lender state

A  remittances

B  indirect portfolio investment

C  foreign direct investment

D  government transactions

A  foreign direct investment

B  indirect portfolio investment

C  government transactions

D  remittances