Question 1

A tariff is:

Accepted Answer

A) a tax on an import. 
B) a physical limitation on the quantity of imports of a certain good. 
C) a health or safety requirement on imports. 
D) a regulation affecting imports. 
A) a tax on an import. 
B) a physical limitation on the quantity of imports of a certain good. 
C) a health or safety requirement on imports. 
D) a regulation affecting imports.

Question 2

Despite hopes that migration between nations in the
European Union would be free, several nations have
Agreements to restrict it.Why?

Accepted Answer

A) They are afraid of disease. 
B) Labor policies are very different, and new workers will expect the same benefits. 
C) They are concerned that mass inflows of workers will lower wages and offer competition for their own domestic
Labor force. 
D) Domestic workers are more productive. 
A) They are afraid of disease. 
B) Labor policies are very different, and new workers will expect the same benefits. 
C) They are concerned that mass inflows of workers will lower wages and offer competition for their own domestic
Labor force. 
D) Domestic workers are more productive.

Question 3

Which of the following is an example of a foreign direct
Investment (FDI) flow?

Accepted Answer

A) the purchase of a controlling interest in a foreign firm by a domestic firm 
B) the purchase of stocks or bonds directly from an international dealer 
C) the purchase of foreign government bonds by domestic investors 
D) accounts denominated in foreign currency in foreign banks owned by domestic depositors 
A) the purchase of a controlling interest in a foreign firm by a domestic firm 
B) the purchase of stocks or bonds directly from an international dealer 
C) the purchase of foreign government bonds by domestic investors 
D) accounts denominated in foreign currency in foreign banks owned by domestic depositors

Question 4

Denmark, Ireland, and the United Kingdom were

Accepted Answer

Denmark, Ireland, and the United Kingdom

Question 5

The article "A Sea Change in Shipping 50 Years Ago"
States that the amount of cargo carried in a ship and the
Speed of the ship __________ from 1950 to 1976.

Accepted Answer

A) increased 
B) decreased 
C) stayed the same 
D) were not related 
A) increased 
B) decreased 
C) stayed the same 
D) were not related

Question 6

Which decade of the twentieth century had the highest
Average tariffs worldwide?

Accepted Answer

A) 1900-1909 
B) 1930-1939 
C) 1950-1959 
D) 1970-1979 
A) 1900-1909 
B) 1930-1939 
C) 1950-1959 
D) 1970-1979

Question 7

What is the immediate effect of increasing tariffs in a
Country on its economy?

Accepted Answer

A) It increases the volume of trade. 
B) It reduces the volume of imports. 
C) It increases the volume of imports. 
D) It promotes better trade relations with other countries. 
A) It increases the volume of trade. 
B) It reduces the volume of imports. 
C) It increases the volume of imports. 
D) It promotes better trade relations with other countries.

Question 8

Which of the following countries is NOT a member of the
European Union?

Accepted Answer

A) Turkey 
B) Slovakia 
C) Hungary 
D) Poland 
A) Turkey 
B) Slovakia 
C) Hungary 
D) Poland

Question 9

Other nations responded to the Smoot­Hawley tariff by:

Accepted Answer

A) complaining to the United Nations. 
B) raising tariffs on imports from other nations in retaliation. 
C) lowering prices on exports in order to increase sales. 
D) attacking military bases in nations that refused to lower tariffs. 
A) complaining to the United Nations. 
B) raising tariffs on imports from other nations in retaliation. 
C) lowering prices on exports in order to increase sales. 
D) attacking military bases in nations that refused to lower tariffs.

Question 10

Currently, which of the following countries is the world's
Largest exporter of goods (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 11

Which of the following statements about trade is TRUE?

Accepted Answer

A) In 2010, Canada was the largest exporter to the United States. 
B) Trade volume among China, Japan, Thailand, and Taiwan is the world's largest. 
C) Trade volume among Chile, Brazil, Argentina, and Mexico is the world's largest. 
D) The combined trade volume of the United States and the European Union is the world's largest. 
A) In 2010, Canada was the largest exporter to the United States. 
B) Trade volume among China, Japan, Thailand, and Taiwan is the world's largest. 
C) Trade volume among Chile, Brazil, Argentina, and Mexico is the world's largest. 
D) The combined trade volume of the United States and the European Union is the world's largest.

Question 12

Which of the following is classified as a United States
Service export?

Accepted Answer

A) Rene LaFrancois, a French citizen, has her hair dyed in a New York hair salon. 
B) Miguel Ramirez, a Mexican citizen, gets paid for working in a Kansas vegetable­canning factory. 
C) Harvey Guelph, a U.S.citizen, gets his haircut in a British barber shop. 
D) Marie Thompson, a U.S.citizen, purchases a bottle of champagne in a French grocery store. 
A) Rene LaFrancois, a French citizen, has her hair dyed in a New York hair salon. 
B) Miguel Ramirez, a Mexican citizen, gets paid for working in a Kansas vegetable­canning factory. 
C) Harvey Guelph, a U.S.citizen, gets his haircut in a British barber shop. 
D) Marie Thompson, a U.S.citizen, purchases a bottle of champagne in a French grocery store.

Question 13

What is the term for a capital flow that is used to purchase
Or build a tangible asset like a factory?

Accepted Answer

A) migration 
B) service exports 
C) service imports 
D) foreign direct investment 
A) migration 
B) service exports 
C) service imports 
D) foreign direct investment

Question 14

What lesson was learned from the imposition of the
Smoot­Hawley tariff?

Accepted Answer

A) Nations can usually work out their differences without any structure or international organization. 
B) Tariffs are often necessary to keep trade fair. 
C) Retaliation and tariff escalation are not as harmful as many suppose. 
D) A reduction of trade as a result of a tariff imposes large costs on the countries involved. 
A) Nations can usually work out their differences without any structure or international organization. 
B) Tariffs are often necessary to keep trade fair. 
C) Retaliation and tariff escalation are not as harmful as many suppose. 
D) A reduction of trade as a result of a tariff imposes large costs on the countries involved.

Question 15

Which of the following economic groupings has the largest
Volume of trade among its member nations?

Accepted Answer

A) NAFTA 
B) the European Union 
C) the Trans­Pacific Partnership 
D) the European Free­Trade Area 
A) NAFTA 
B) the European Union 
C) the Trans­Pacific Partnership 
D) the European Free­Trade Area

Question 16

Reasons that firms in an industrial nation acquire firms in
Another industrial nation include:

Accepted Answer

A) avoidance of import tariffs and quotas. 
B) the ability to share technology and resources. 
C) market access in the foreign nation. 
D) avoidance of import tariffs and quotas, the ability to share technology and resources, and market access in the
Foreign nation. 
A) avoidance of import tariffs and quotas. 
B) the ability to share technology and resources. 
C) market access in the foreign nation. 
D) avoidance of import tariffs and quotas, the ability to share technology and resources, and market access in the
Foreign nation.

Question 17

Merchandise trade among European countries accounted
For approximately what share of total world merchandise
(goods) trade in 2010?

Accepted Answer

A) 3% 
B) 23% 
C) 50% 
D) 75% 
A) 3% 
B) 23% 
C) 50% 
D) 75%

Question 18

Which of the following countries is NOT a member of the
Organization for Economic Cooperation and Development?

Accepted Answer

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

Question 19

When a foreign resident purchases a good or service from
Someone in the United States, the transaction is:

Accepted Answer

A) a U.S.export. 
B) a U.S.import. 
C) bilateral exchange. 
D) a compensating differential. 
A) a U.S.export. 
B) a U.S.import. 
C) bilateral exchange. 
D) a compensating differential.

Question 20

Which of the following is NOT a reason for horizontal FDI?

Accepted Answer

A) to avoid tariffs or other trade barriers 
B) to have improved facilities and information for marketing products 
C) to take advantage of inexpensive labor 
D) to share expertise and avoid possible duplication of products 
A) to avoid tariffs or other trade barriers 
B) to have improved facilities and information for marketing products 
C) to take advantage of inexpensive labor 
D) to share expertise and avoid possible duplication of products

A tariff is:

Despite hopes that migration between nations in the European Union would be free, several nations have Agreements to restrict it.Why?

Which of the following is an example of a foreign direct Investment (FDI) flow?

Denmark, Ireland, and the United Kingdom were

The article "A Sea Change in Shipping 50 Years Ago" States that the amount of cargo carried in a ship and the Speed of the ship __________ from 1950 to 1976.

Which decade of the twentieth century had the highest Average tariffs worldwide?

What is the immediate effect of increasing tariffs in a Country on its economy?

Which of the following countries is NOT a member of the European Union?

Other nations responded to the SmootHawley tariff by:

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

Which of the following statements about trade is TRUE?

Which of the following is classified as a United States Service export?

What is the term for a capital flow that is used to purchase Or build a tangible asset like a factory?

What lesson was learned from the imposition of the SmootHawley tariff?

Which of the following economic groupings has the largest Volume of trade among its member nations?

Reasons that firms in an industrial nation acquire firms in Another industrial nation include:

Merchandise trade among European countries accounted For approximately what share of total world merchandise (goods) trade in 2010?

Which of the following countries is NOT a member of the Organization for Economic Cooperation and Development?

When a foreign resident purchases a good or service from Someone in the United States, the transaction is:

Which of the following is NOT a reason for horizontal FDI?

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

A tariff is:

Despite hopes that migration between nations in the European Union would be free, several nations have Agreements to restrict it.Why?

Which of the following is an example of a foreign direct Investment (FDI) flow?

Denmark, Ireland, and the United Kingdom were

The article "A Sea Change in Shipping 50 Years Ago" States that the amount of cargo carried in a ship and the Speed of the ship __________ from 1950 to 1976.

Which decade of the twentieth century had the highest Average tariffs worldwide?

What is the immediate effect of increasing tariffs in a Country on its economy?

Which of the following countries is NOT a member of the European Union?

Other nations responded to the Smoot­Hawley tariff by:

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

Which of the following statements about trade is TRUE?

Which of the following is classified as a United States Service export?

What is the term for a capital flow that is used to purchase Or build a tangible asset like a factory?

What lesson was learned from the imposition of the Smoot­Hawley tariff?

Which of the following economic groupings has the largest Volume of trade among its member nations?

Reasons that firms in an industrial nation acquire firms in Another industrial nation include:

Merchandise trade among European countries accounted For approximately what share of total world merchandise (goods) trade in 2010?

Which of the following countries is NOT a member of the Organization for Economic Cooperation and Development?

When a foreign resident purchases a good or service from Someone in the United States, the transaction is:

Which of the following is NOT a reason for horizontal FDI?

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

Other nations responded to the SmootHawley tariff by:

What lesson was learned from the imposition of the SmootHawley tariff?