Exam 2: The Dynamic Environment of International Trade

_____ is a new nontariff barrier that was designed to prevent foreign producers from using predatory pricing.

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

One of the basic elements of the General Agreement on Tariffs and Trade (GATT) is that:

Blockage is ideally accomplished:

A case might be made for temporary protection of markets with excess productive capacity or excess labor when such protection could facilitate an orderly transition.

A balance-of-payments statement includes three accounts. Two of those accounts are the current account and the capital account. What is the third account found on the balance-of-payments statement?

A specific unit or dollar limit applied to a particular type of good is called a(n):

What is the significance of balance of payments figures?

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:

Which of the following was designed to primarily deal with trade deficits, protectionism, and the overall fairness of the U.S. trading partners?

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

Quotas strictly permit importing on a case-by-case basis.

Which of the following is a defining characteristic of a balance-of-payments statement?

The World Bank estimates that five countries whose share of world trade is barely one-third that of the European Union will, by 2020, have a 50 percent higher share than that of the European Union. _____ is one of the countries included in this list.

The reserves account is a record of direct investment, portfolio investment, and short-term capital movements to and from countries.

Quotas are more flexible than import licenses.

Several nations are frustrated with the slow progress of the most recent round of WTO trade negotiations. To vent their frustration, several countries are:

Which were the two major challenges faced by U.S. multinational corporations at the close of the 1960s?

It is mandatory for importers who want to buy a foreign good to apply for a business permit in that country.

In order to effectively secure foreign exchange, which of the following is most likely to be used by countries experiencing severe shortages of foreign exchange?