Exam 19: International Trade

There is a "magic level" where foreign debt becomes too large and triggers a crisis.

Prior to 1975, the United States had:

Which of the following countries has export and import shares that exceed 20 percent of its GDP?

With trade:

From the national income identity, if:

An explanation of the growth of international trade in the early 1970s is the reduction of institutional trade barriers.

With intertemporal trade, trade imbalances move in tandem with:

The difference between exports and imports is called:

According to Matthew Slaughter of Dartmouth College, in a study of multinational corporations, he found that for every:

From the national income identity:

According to economic theory, fast-growing countries should be running trade deficits, but the evidence is that, in fast-growing countries, the causality is from exports to growth.

With free trade, there are no costs, only benefits.

The national income identity can be rearranged to yield the relationship between:

Economists have done a good job of explaining the benefits of free trade.

In ________, the United States became a net debtor to the rest of the world.

When the central government runs a budget deficit, the economy runs the risk of ________; this phenomenon is called ________.

Worldwide, the trade balance must be:

Refer to the following table when answering Table 19.1: East and West Fish and Chip Production West East Labor Force 100 400 Fish Production per Person 200 kilos 60 kilos Chip Production per Person 100 kilos 20 kilos -Consider Table 19.1. With free trade, the West has a comparative advantage in ________ production and dedicates ________ percent of its labor to fish.

An impact of free trade is that:

Suppose, in the North, one unit of labor produces $f _ { n }$ units of fish or $c _ { n }$ Units of chips. In the South, one unit of labor produces $f _ { s }$ Units of fish and $c _ { s }$ Units of chips. For the South to specialize in fish, which of the following must be true?