Question 1

The U.S.trade­to­GDP ratio is:

Accepted Answer

A) the highest in the industrialized world. 
B) greater than China's and Japan's. 
C) smaller than that of Germany. 
D) too high. 
A) the highest in the industrialized world. 
B) greater than China's and Japan's. 
C) smaller than that of Germany. 
D) too high.

Question 2

What is the best measure of a country's openness to
International trade?

Accepted Answer

A) the ratio of its exports to its GDP 
B) the ratio of its imports to its GDP 
C) the ratio of its trade balance (exports minus imports) to its GDP 
D) the ratio of its exports plus imports to its GDP 
A) the ratio of its exports to its GDP 
B) the ratio of its imports to its GDP 
C) the ratio of its trade balance (exports minus imports) to its GDP 
D) the ratio of its exports plus imports to its GDP

Question 3

Which of the following statements about the United States­
China bilateral trade balance is correct?

Accepted Answer

A) It is a good indicator of the inequality of imports and exports between the United States and China. 
B) It vastly understates the gap in imports and exports between the United States and China. 
C) It may overstate the gap in imports and exports between the United States and China because some
Material inputs used to produce Chinese exports do not
Originate in China. 
D) It shows that there is balanced trade between the United States and China. 
A) It is a good indicator of the inequality of imports and exports between the United States and China. 
B) It vastly understates the gap in imports and exports between the United States and China. 
C) It may overstate the gap in imports and exports between the United States and China because some
Material inputs used to produce Chinese exports do not
Originate in China. 
D) It shows that there is balanced trade between the United States and China.

Question 4

"Value added" in the context of international trade refers
To:

Accepted Answer

A) the difference between the value of exports and the value of imported inputs used in producing exports. 
B) the additional value a worker provides to a firm when she is hired. 
C) the value added by being able to purchase goods in a competitive market. 
D) the value added by import brokers when they mark up the price of the products. 
A) the difference between the value of exports and the value of imported inputs used in producing exports. 
B) the additional value a worker provides to a firm when she is hired. 
C) the value added by being able to purchase goods in a competitive market. 
D) the value added by import brokers when they mark up the price of the products.

Question 5

Describe the historical evolution of the European Union.

Accepted Answer

Belgium, France, Germany, Ital

Question 6

Immigration issues are usually more intense in:

Accepted Answer

A) low­wage nations. 
B) nations whose borders are not secured. 
C) nations with open­door policies. 
D) nations whose wages are higher than world averages. 
A) low­wage nations. 
B) nations whose borders are not secured. 
C) nations with open­door policies. 
D) nations whose wages are higher than world averages.

Question 7

If the value of a nation's imports is more than the value of
Its exports, then the nation is experiencing:

Accepted Answer

A) a trade deficit. 
B) a trade surplus. 
C) balanced trade. 
D) a trade balance. 
A) a trade deficit. 
B) a trade surplus. 
C) balanced trade. 
D) a trade balance.

Question 8

The difference in value between a nation's exports and
Imports is called:

Accepted Answer

A) its trade deficit. 
B) its bilateral trade balance. 
C) balanced trade. 
D) its trade balance. 
A) its trade deficit. 
B) its bilateral trade balance. 
C) balanced trade. 
D) its trade balance.

Question 9

Whenever foreign direct investment occurs between
Industrial countries, it is referred to as:

Accepted Answer

A) egalitarian FDI. 
B) balanced FDI. 
C) horizontal FDI. 
D) vertical FDI. 
A) egalitarian FDI. 
B) balanced FDI. 
C) horizontal FDI. 
D) vertical FDI.

Question 10

Which of the following is classified as horizontal FDI?

Accepted Answer

A) A U.S.steel­producing firm purchases an iron ore mine in Australia. 
B) A German auto manufacturer constructs an auto assembly plant in Alabama. 
C) Apple establishes a plant in Taiwan to manufacture components for iPhones that are then shipped to China for
Assembly at its phone assembly plant. 
D) McDonald's buys a Russian meat packing plant that produces ground beef for Big Macs sold at its restaurants
In Moscow. 
A) A U.S.steel­producing firm purchases an iron ore mine in Australia. 
B) A German auto manufacturer constructs an auto assembly plant in Alabama. 
C) Apple establishes a plant in Taiwan to manufacture components for iPhones that are then shipped to China for
Assembly at its phone assembly plant. 
D) McDonald's buys a Russian meat packing plant that produces ground beef for Big Macs sold at its restaurants
In Moscow.

Question 11

What are the differences between vertical and horizontal
FDI?

Accepted Answer

Horizontal FDI occurs between industrial

Question 12

Which of the following countries has the highest ratio of
International trade to GDP?

Accepted Answer

A) the United States 
B) Japan 
C) China 
D) Malaysia 
A) the United States 
B) Japan 
C) China 
D) Malaysia

Question 13

Which of the following is a reason why a foreign truck
Manufacturer might want to acquire or construct a plant
In the United States?
I.By having a plant in the United States, the
Manufacturer will avoid the U.S.25% tariff on imported
Pickup trucks.
II.The manufacturer wants to take advantage of lower
Wages in the United States.
III.U.S.consumers will buy only U.S.­made pickup
Trucks.

Accepted Answer

A) I 
B) II 
C) III 
D) II and III 
A) I 
B) II 
C) III 
D) II and III

Question 14

What was the General Agreement on Tariffs and Trade
(GATT)?

Accepted Answer

GATT was an international agre

Question 15

Currently, which of the following countries is the world's
Largest exporter of goods and services (in dollar volume)?

Accepted Answer

A) China 
B) the United States 
C) Japan 
D) Germany 
A) China 
B) the United States 
C) Japan 
D) Germany

Question 16

Which of the following is a reason for horizontal FDI?

Accepted Answer

A) to increase access to foreign market 
B) to avoid tariffs of the host country 
C) to decrease access to foreign market 
D) to increase access to foreign market and avoid tariffs of the host country 
A) to increase access to foreign market 
B) to avoid tariffs of the host country 
C) to decrease access to foreign market 
D) to increase access to foreign market and avoid tariffs of the host country

Question 17

Some countries have low ratios of international trade
(exports + imports) to GDP (such as the United States),
while, in other countries, the ratio of international trade
to GDP exceeds one.How is it possible for trade to exceed
the value of GDP?

Accepted Answer

Countries for which trade exceeds GDP te

Question 18

Why should bilateral trade balances be viewed with some
caution?

Accepted Answer

Bilateral trade balances do not account

Question 19

How does trade in the modern world economy differ from
trade in the past-say, 1925?

Accepted Answer

In the past, trade occurred in more stan

Question 20

A country's service exports include:

Accepted Answer

A) a restaurant meal purchased by its resident in another country. 
B) equipment or automobiles with a warranty and a service contract sold to a foreign resident. 
C) a ticket on a country's airline sold to a foreign resident. 
D) a country's resident who migrates to work in another country. 
A) a restaurant meal purchased by its resident in another country. 
B) equipment or automobiles with a warranty and a service contract sold to a foreign resident. 
C) a ticket on a country's airline sold to a foreign resident. 
D) a country's resident who migrates to work in another country.

The U.S.tradetoGDP ratio is:

What is the best measure of a country's openness to International trade?

Which of the following statements about the United States China bilateral trade balance is correct?

"Value added" in the context of international trade refers To:

Describe the historical evolution of the European Union.

Immigration issues are usually more intense in:

If the value of a nation's imports is more than the value of Its exports, then the nation is experiencing:

The difference in value between a nation's exports and Imports is called:

Whenever foreign direct investment occurs between Industrial countries, it is referred to as:

Which of the following is classified as horizontal FDI?

What are the differences between vertical and horizontal FDI?

Which of the following countries has the highest ratio of International trade to GDP?

What was the General Agreement on Tariffs and Trade (GATT)?

Currently, which of the following countries is the world's Largest exporter of goods and services (in dollar volume)?

Which of the following is a reason for horizontal FDI?

Some countries have low ratios of international trade (exports + imports) to GDP (such as the United States), while, in other countries, the ratio of international trade to GDP exceeds one.How is it possible for trade to exceed the value of GDP?

Why should bilateral trade balances be viewed with some caution?

How does trade in the modern world economy differ from trade in the past-say, 1925?

A country's service exports include:

Trade and Technology: the Ricardian Model

Gains and Losses From Trade in the Specific-Factors Model

Trade and Resources: the Heckscher-Ohlin Model

Movement of Labor and Capital Between Countries

Increasing Returns to Scale and Monopolistic Competition

Import Tariffs and Quotas Under Perfect Competition

Import Tariffs and Quotas Under Imperfect Competition

International Agreements: Trade, Labor, and the Environment

Introduction to Exchange Rates and the Foreign Exchange Market

Exchange Rates I: the Monetary Approach in the Long Run

Filters

Exam 1: The Global Economy

The U.S.trade­to­GDP ratio is:

What is the best measure of a country's openness to International trade?

Which of the following statements about the United States­ China bilateral trade balance is correct?

"Value added" in the context of international trade refers To:

Describe the historical evolution of the European Union.

Immigration issues are usually more intense in:

If the value of a nation's imports is more than the value of Its exports, then the nation is experiencing:

The difference in value between a nation's exports and Imports is called:

Whenever foreign direct investment occurs between Industrial countries, it is referred to as:

Which of the following is classified as horizontal FDI?

What are the differences between vertical and horizontal FDI?

Which of the following countries has the highest ratio of International trade to GDP?

What was the General Agreement on Tariffs and Trade (GATT)?

Currently, which of the following countries is the world's Largest exporter of goods and services (in dollar volume)?

Which of the following is a reason for horizontal FDI?

Some countries have low ratios of international trade (exports + imports) to GDP (such as the United States), while, in other countries, the ratio of international trade to GDP exceeds one.How is it possible for trade to exceed the value of GDP?

Why should bilateral trade balances be viewed with some caution?

How does trade in the modern world economy differ from trade in the past-say, 1925?

A country's service exports include:

Trade and Technology: the Ricardian Model

Gains and Losses From Trade in the Specific-Factors Model

Trade and Resources: the Heckscher-Ohlin Model

Movement of Labor and Capital Between Countries

Increasing Returns to Scale and Monopolistic Competition

Import Tariffs and Quotas Under Perfect Competition

Import Tariffs and Quotas Under Imperfect Competition

International Agreements: Trade, Labor, and the Environment

Introduction to Exchange Rates and the Foreign Exchange Market

Exchange Rates I: the Monetary Approach in the Long Run

Filters

The U.S.tradetoGDP ratio is:

Which of the following statements about the United States China bilateral trade balance is correct?