Which of the following increases the possibility of depreciation of the domestic

Question

Which of the following increases the possibility of depreciation of the domestic currency in the foreign exchange market?

a. An increase in the demand for domestic goods in the foreign market.

b. A decrease in total imports made by domestic country

c. A decrease in the interest rates in the domestic country

d. An increase in the short-term foreign investments

e. An increase in domestic production of import substitutes

Which of the following arguements is not used by promoters of globalization as one of the reasons why free trade and international investment result in higher standards of living?

a. Free trade helps developing countries.

b. International organizations represent governments and people, not the interests of corporations

c. There is no convincing evidence that globalization occurs at the expense of the environment

d. There is no convincing evidence that globalization occurs by encouraging harmful labor practices.

e. Globalization brings better cultural practices to countries that have obsolete cultural traditons.

Which of the following measures of globalization was not affected during the aftermath of the terrorist attacks in the United Staes on September 11, 2001?

a. World Trade

b. Global foreign direct investment

c. International travel and tourism

d. International telephone calls

e. Political engagement

Explanation / Answer

c. A decrease in the interest rates in the domestic country

a. Free trade helps developing countries.

e. Political engagement

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