Exam 2: The Dynamic Environment of International Trade

A voluntary export restraint (VER) is generally imposed under the threat of stiffer quotas and tariffs being set by the importing country if a VER is not established.

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:

As part of the worldwide economic growth and rebuilding after World War II, countries once classified as less developed were reclassified as underdeveloped countries.

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

The Omnibus Trade and Competitiveness Act of 1988 focuses on assisting businesses to be more competitive in world markets as well as on correcting perceived injustice in trade practices.

What are the three areas covered by the Omnibus Trade and Competitiveness Act of 1988 that are considered critical in improving U.S. trade?

Describe voluntary export restraints.

What was the most apparent reciprocal impact of the foreign economic assistance given by the United States?

What are the arguments in favor of protectionism? Which of them are generally recognized as valid by economists?

Which of the following ensures that balance-of-payments records are always in balance?

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

What is the significance of balance-of-payments figures?

Which of the following agreements makes it possible to challenge the restrictions in Indonesia that prohibit foreign firms from opening their own wholesale or retail distribution?

The Organization for Economic Cooperation and Development (OECD) estimates that the economies of the developed world will expand at much faster rates when compared to the developing economies.

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?

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

_____ is a nontariff barrier that was specifically designed to prevent foreign producers from using predatory pricing to take control of U.S. markets.

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.

The _____ 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.