International Monetary and Financial Economics (Daniels / Van Hoose) Chapter 1 Keeping Up with a Changing World-Trade Flows, Capital Flows and the Balance of Payments 1) Globalization includes which of the following ideas? A) increasing market integration B) the expansion of world governance and global society C) the increased mobility of peoples and information D) all of the above Answer: D 2) International economic integration refers to A) the expansion of world governance and global society. B) the increased mobility of peoples and information. C) the strengthening of existing international linkages of commerce and the addition of new linkages. D) the increasing of market integration. Answer: C 3) When someone talks about "invisibles" with respect to globalization, they are referring to A) individuals left behind in the development process. B) the flow of funds that takes place behind the scenes. C) the increase of trade in services. D) the influence of government policies that is often not measurable. Answer: C 4) The real sector of an economy refers to transactions in A) the production and sale of domestic goods and services. B) domestic financial assets. C) the production and sale of domestic and global goods and services. D) domestic and global financial a


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