Exam 2: The Dynamic Environment of International Trade

When the United States refuses to sell goods to Iran because of the perception that the country harbors radicals and terrorists, the refusal is most accurately referred to as a(n):

In the context of blocked currency, blockage is accomplished by refusing to allow an importer to exchange its national currency for the currency of the seller.

The United States and other countries require some products (automobiles in particular) to contain a percentage of "local content" to gain admission to their markets. This is an example of the stringent usage of _____ to restrict trade.

The United States and other countries require some products to contain a percentage of "local content" to gain admission to their markets.

Briefly discuss the efforts taken by the U.S to promote global trade after World War II.

Which of the following is an area that is considered critical in improving U.S. trade in the context of the Omnibus Trade and Competitiveness Act?

An agreement signed willingly between the importing country and the exporting country for a restriction on the volume of exports is called a:

Which of the following is true regarding the balance-of-payments records?

Another term for IMF special drawing rights (SDRs) is:

The _____ account of the balance-of-payments statement is most likely to record all exports and imports of gold, increases or decreases in foreign exchange, and increases or decreases in liabilities to foreign central banks.

Which of the following was the most significant move of the 1980s that contributed toward international cooperation among trading nations?

Exporting countries primarily agree to voluntary export restraints (VERs) to:

As the U.S. trade deficit has grown, pressures have begun to push the value of the dollar to higher levels.

List the major agreements reached during the Uruguay Round of GATT negotiations. Which was the most notable achievement of the Uruguay Round?

A government boycott is a partial restriction against the purchase and importation of certain goods and/or services from other countries.

Developed by the IMF to cope with universally floating exchange rates, _____ represent(s) an average base of value derived from the value of a group of major currencies.

The fundamental difference between quotas and import licenses is that:

After World War II, the United States set out to infuse the ideal of capitalism throughout as much of the world as possible. The _____, aimed at assisting in rebuilding Europe, is the plan most closely associated with this endeavor.

How is the balance ensured in a balance-of-payments record? What does a balanced record signify?

In the late 1990s, most of the countries of the world saw a slow down in the unprecedented and precipitous growth of their economies. However, _____ remained unaffected by this trend.