Exam 2: The Dynamic Environment of International Trade

List the effects of imposing tariffs.

The World Bank was formed with the primary objective of overcoming inadequate monetary reserves and dealing with unstable currencies which were particularly vexing problems in global trade.

Why was the IMF formed? How does the IMF deal with universally floating rates?

Which of the following presents the correct picture of the outcome of increased world trade after the 1950s, contrary to Servan-Schreiber's prediction?

Tariffs are often used as reprisals against protectionist moves of trading partners.

The exchange permit can stipulate an unfavorable rate of exchange depending on the desires of the government.

Which of the following emerged as a successor to the GATT following the Uruguay Round of GATT negotiations?

In general, tariffs decrease inflationary pressures.

Tall Pine Plywood Company has just received a notice that a shipment of plywood (2 metric tons) has been rejected by Japanese customs because the knotholes commonly found on a plywood sheet are too large. Which of the following categories of nontariff barriers primarily checks such quality issues?

Briefly describe the elements of a balance-of-payments statement.

The _____ of the balance-of-payments statement is most likely to record all merchandise exports, imports, and services plus unilateral transfers of funds.

Since both SDRs and the U.S. dollar have lost their utility as the basic medium of financial exchange, most monetary statistics relate to gold rather than dollars.

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.

The Foreign Corrupt Practices Act (FCPA) is specifically addressed in the _____ section of the Omnibus Trade and Competitiveness act.

As an outcome of the Uruguay Round of intergovernmental tariff negotiations on the GATT platform, the first multilateral, legally enforceable agreement covering trade and investment in the services sector was formulated, termed the _____.

Which of the following is true of tariffs?

To overcome the problems of inadequate monetary reserves and unstable currencies that plagued international trading before World War II, the _____ was formed.

Obtaining export licenses for products on the export control list is more arduous than for those items that are exempted from the list.

Protection of an infant industry is recognized by economists as a valid argument in favor of protectionism.

In general, tariffs weaken: