01
True or false
1 point
True or false: If an intermediate input crosses a border several times during production, gross export totals can count its value more than once.
Free Practice Quiz Question List
4 Trade, Finance, and Global Production Online Quiz Questions
Use this free practice quiz with 20 questions to review 4 Trade, Finance, and Global Production, test your knowledge, and prepare for your next test or exam.
20 questions
02
Written response
1 point
According to the ILO estimate for 2022, what percentage of the global labor force was made up of international migrants? Enter the percentage value only.
03
Fill in the blank
1 point
International migrants may send —money transferred to people in their countries of origin.
04
Choose all
1 point
Which examples represent the four ways services can be supplied internationally? Select all correct answers.
- A
A designer provides work online to a client in another country.
- B
A tourist travels abroad and buys local services.
- C
A foreign-owned bank opens a local branch.
- D
A consultant travels to another country to provide a service.
- E
A locally owned shop sells goods only to local consumers.
05
Choose one
1 point
A company invests in a business abroad and gains a lasting interest and influence in it. Which type of capital flow best describes this investment?
- A
A company makes a short-term loan to a foreign business.
- B
An investor acquires a lasting interest and influence in a business in another economy.
- C
A firm buys shares as a portfolio investment without seeking influence in the business.
- D
A firm purchases components from an independent supplier abroad.
06
Written response
1 point
What measure estimates how much value each economy contributes to a traded product, rather than counting the gross value of exports?
07
Fill in the blank
1 point
When activities involved in creating and delivering a product take place across countries, they form a . Lead firms may coordinate this network through ownership or .
08
Choose all
1 point
Which of the following are forms of capital flow? Select all correct answers.
- A
Loans
- B
Portfolio investment in financial assets
- C
Foreign direct investment
- D
A tourist travelling abroad
- E
A shipment of finished products
09
True or false
1 point
True or false: A country’s participation in global value chains guarantees that the gains will be broadly shared among its workers and businesses.
- A
True
- B
False
10
Choose one
1 point
A smartphone is assembled in one country using components, software, and design work from several others. Which conclusion about the assembly country is best supported?
- A
The country of final assembly necessarily captures most of the product's total value.
- B
The export value equals the income received by workers in the assembly country.
- C
The country of final assembly records an export, but this does not show how much value it captures.
- D
All value in the product must have been created in the country where it was assembled.
11
Choose one
1 point
A government is considering policies to help domestic firms join global value chains. Which assessment best reflects the potential benefits and limits of participation?
- A
It can provide access to markets, technology, and skills, though benefits depend on how participation is developed and governed.
- B
It guarantees every participating economy will receive the same share of profits.
- C
It prevents participating economies from developing their own capabilities.
- D
It benefits workers only when all production tasks are located in one country.
12
Open ended
1 point
Explain one benefit and one risk of global production networks. Include a specific benefit, such as access to markets, technology, skills, or jobs, and explain how a shortage or transport blockage in one location could affect manufacturers or consumers elsewhere.
13
Choose one
1 point
A tourist travels abroad to receive a hotel service. Which mode of international services trade does this illustrate?
- A
Cross-border supply
- B
Consumption abroad
- C
Commercial presence
- D
Presence of a natural person
14
Choose one
1 point
Which situation best fits the definition of foreign direct investment (FDI)?
- A
A fund buys shares in a foreign company solely as a financial asset, without seeking influence over the business.
- B
A bank issues a loan to a company operating abroad.
- C
An investor acquires a lasting interest and influence in a business in another economy.
- D
A company pays an overseas supplier for a shipment of components.
15
Written response
1 point
A worker who has migrated internationally sends money to family members in the worker's country of origin. What is this type of transfer called?
16
Choose one
1 point
A smartphone is designed in one country, assembled in another, and includes components and services from several economies. What is the best conclusion about the assembly country's export record?
- A
The assembly country necessarily captures most of the product's value because it completes the final production stage.
- B
The export entry from the assembly country does not by itself show where most value is created or captured.
- C
The assembly country records no export because components were produced elsewhere.
- D
The export value measures only the value of research and intellectual property.
17
True or false
1 point
If an input crosses borders multiple times as it is processed into a finished product, gross export totals can count that input's value more than once.
- A
True
- B
False
18
Choose one
1 point
A bank headquartered abroad establishes a branch in another country and serves customers there. Which mode of international services trade does this illustrate?
- A
Cross-border supply
- B
Consumption abroad
- C
Commercial presence
- D
Presence of a natural person
19
Choose one
1 point
An economy wants to attract investment and take on higher-value production tasks. Which strategy is most consistent with the role of connectivity and capabilities in global production?
- A
Joining a global value chain automatically ensures that gains are shared equally.
- B
Connectivity matters only for moving finished goods, not for investment or production.
- C
Stronger infrastructure and capabilities can improve an economy's position to attract investment and move into higher-value tasks.
- D
Limited bargaining power guarantees that a location will receive more profitable activities.
20
Written response
1 point
A bicycle maker imports steel tubing and uses it to manufacture bicycles for sale. In the material's terminology, what is the imported steel tubing?
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