Exam 2: The Dynamic Environment of International Trade

Which statements accurately describes the General Agreement on Tariffs and Trade (GATT)?

Why did the Smoot-Hawley Act play a role in sending the world's economies into the Great Depression?

__________ are becoming a popular way to circumvent WTO guidelines and impose new duties.

________ pricing is the practice whereby a foreign producer intentionally sells its products in the United States for less than the cost of production to undermine the competition and take control of the market.

When foreign currencies can be traded for more dollars, U.S. products and companies are more expensive for the foreign customer and exports decrease.

Describe the cost to the consumer when protectionist measures are in place.

Developed by the International Monetary Fund to cope with universally floating exchange rates, ________ represent an average base of value derived from the value of a group of major currencies.

What is a tariff?

If a country decided to refuse to allow an importer to exchange its national currency for the sellers' currency, it would be an example of a(n) ________ currency.

Establishing a tariff on fabrics imported from Uruguay so that U.S. manufacturers sell more fabrics is an example of a protectionist measure.

Compare the U.S. position in world trade today to when Servan-Schreiber warned Europe about U.S. multinational domination.

A boycott on importing produce from Mexico would be an example of a

The ________ of the balance-of-payments statement is used to record increases or decreases in foreign exchange and increases or decreases in liabilities to foreign central banks.

The rapid growth of war-torn economies and previously underdeveloped countries, coupled with large-scale economic cooperation and assistance that followed World War II, led to

By the year 1971, the United States was selling less to other countries than it bought from them; that is, the United States had a trade deficit.

What trade policy tool makes it mandatory for its importers who want to buy a foreign good to apply for an exchange permit?

_________ and the World Bank Group are two global institutions created primarily to assist nations in becoming and remaining economically viable.

In the last few years, most of the countries of the world saw a dramatic slowdown in the growth of their economies with the exception of

What is used to ensure that balance-of-payments records are always in balance?

A nation's balance-of-payments statement records all financial transactions between its residents and those of the rest of the world during a given period of time.