Exam 2: The Dynamic Environment of International Trade

Randall, a protectionist, has seen several small businesses go bankrupt because they were unable to compete with the cheaper prices of goods provided by foreign companies. The cell-phone manufacturing industry has just started in the United Kingdom, and Randall's company is one of the first to try its hand at cell-phone manufacturing. Which of the following arguments is most likely to be used by Randall to persuade his government to restrict the import of foreign cell phones from foreign companies?

Why was the International Monetary Fund (IMF) formed? How does the IMF deal with universally floating rates?

Which of the following is the major reason behind the failure of American MNCs to completely dominate the European markets as predicted by Servan-Schreiber?

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

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.

In the context of nontariff barriers, antidumping practices fall under the category of:

Several nations, frustrated with the slow progress of the most recent round of WTO trade negotiations, are:

By the year 1971, the United States was witnessing a(n):

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.

An exchange permit can stipulate the:

The system of accounts that records a nation's international financial transactions is most accurately called its:

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

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

Which of the following falls on the plus side of the U.S. balance of payments?

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

Which of the following types of nontariff barriers strictly falls under the category of specific limitations on trade?

The decisions taken by the World Trade Organization in solving trade disputes among members are binding ones.

_____ and the World Bank Group are two global institutions created primarily to assist nations in becoming and remaining economically viable.

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

Post-World War II, it was noticed that there was worldwide economic growth and countries once classified as less developed were reclassified as _____.