Question 1

World trade expanded during 1929-1933.

Accepted Answer

A) True 
 B)False

Question 2

What are the arguments in favor of free trade? What global efforts have been made to remove trade restrictions? How do free trade areas impact free trade?

Accepted Answer

Supporters of free trade argue that if t...

Question 3

For many years before World War I, the principal trading countries maintained monetary systems based on:

Accepted Answer

A)   flexible exchange rates.
B)   adjustable exchange rates.
C)   variable exchange rates.
D)   fixed exchange rates.

Question 4

The crisis and shortages in the U.S. economy as a result of the Arab oil embargo in the 1970s demonstrated the importance of international trade.

Accepted Answer

A) True 
 B)False

Question 5

In 1947, most Western nations agreed to a mutual effort to reduce trade barriers through the:

Accepted Answer

A)   North Atlantic Treaty Organization.
B)   Organization of Petroleum Exporting Countries.
C)   Security Council of the United Nations.
D)   General Agreement on Trade and Tariffs.

Question 6

What is the meaning of foreign exchange? What is the difference between a fixed and a flexible exchange rate system? How does the current exchange rate system of the United States work?

Accepted Answer

Foreign exchange refers to the process o...

Question 7

When countries meet under GATT in order to reduce trade barriers, these meetings are called:

Accepted Answer

A)   circles.
B)   trade rounds.
C)   confrontations.
D)   squares.

Question 8

Trade is the lifeblood of a modern economy.

Accepted Answer

A) True 
 B)False  True

Question 9

Which of the following is not an advantage of international trade?

Accepted Answer

A)   Better product can be obtained.
B)   Prices for products are lower.
C)   Local producers may be hurt.
D)   Products that cannot be produced at home can be obtained.

Question 10

Note some ways to protect American jobs from being lost to foreign nations. Why do most economists oppose such measures? What do they cite as being the impact on pricing of goods in the American market?

Accepted Answer

Critics of globalization argue that we s...

Question 11

Invisible items of trade include:

Accepted Answer

A)   wheat, barley, corn, and rye.
B)   machinery.
C)   U.S. tourist payments in foreign countries.
D)   rice.

Question 12

Economists who favor free trade view free trade areas created by associations of countries with:

Accepted Answer

A)   much favor.
B)   much fear.
C)   both favor and fear.
D)   great joy.

Question 13

Erratic fluctuations in exchange rates help trade and reduce risk in transactions.

Accepted Answer

A) True 
 B)False  False

Question 14

In 2007, the U.S. balance of payments was:

Accepted Answer

A)   running a surplus.
B)   balanced by increased trade advantage.
C)   running a deficit.
D)   exactly equal to the balance of trade surplus.

Question 15

One commodity that is desirable in the United States that we cannot produce ourselves is coffee.

Accepted Answer

A) True 
 B)False

Question 16

When tariffs are levied as a percentage of a value of a commodity, they are said to be ad hominem.

Accepted Answer

A) True 
 B)False

Question 17

Recently, the balance of trade deficits has become so large that the U.S. is now:

Accepted Answer

A)   the largest debtor nation in the world.
B)   a net creditor nation.
C)   a surplus nation.
D)   the first nation not to import anything.

Question 18

Most economists would argue that free trade should be pursued insofar as jobs can be protected from outsourcing.

Accepted Answer

A) True 
 B)False

Question 19

Global corporations can avoid import quotas.

Accepted Answer

A) True 
 B)False

Question 20

Critics of globalization argue that to prevent job loss we should protect domestic jobs by establishing tariffs on imports.

Accepted Answer

A) True 
 B)False  True

Exam 20: International Economic Relations

World trade expanded during 1929-1933.

Correct AnswerverifiedShow Answer

What are the arguments in favor of free trade? What global efforts have been made to remove trade restrictions? How do free trade areas impact free trade?

Correct AnswerverifiedSupporters of free trade argue that if t...View AnswerShow Answer

For many years before World War I, the principal trading countries maintained monetary systems based on:

Correct AnswerverifiedShow Answer

The crisis and shortages in the U.S. economy as a result of the Arab oil embargo in the 1970s demonstrated the importance of international trade.

Correct AnswerverifiedShow Answer

In 1947, most Western nations agreed to a mutual effort to reduce trade barriers through the:

Correct AnswerverifiedShow Answer

What is the meaning of foreign exchange? What is the difference between a fixed and a flexible exchange rate system? How does the current exchange rate system of the United States work?

Correct AnswerverifiedForeign exchange refers to the process o...View AnswerShow Answer

When countries meet under GATT in order to reduce trade barriers, these meetings are called:

Correct AnswerverifiedShow Answer

Trade is the lifeblood of a modern economy.

Correct AnswerverifiedTrue

Which of the following is not an advantage of international trade?

Correct AnswerverifiedShow Answer

Note some ways to protect American jobs from being lost to foreign nations. Why do most economists oppose such measures? What do they cite as being the impact on pricing of goods in the American market?

Correct AnswerverifiedCritics of globalization argue that we s...View AnswerShow Answer

Invisible items of trade include:

Correct AnswerverifiedShow Answer

Economists who favor free trade view free trade areas created by associations of countries with:

Correct AnswerverifiedShow Answer

Erratic fluctuations in exchange rates help trade and reduce risk in transactions.

Correct AnswerverifiedFalse

In 2007, the U.S. balance of payments was:

Correct AnswerverifiedShow Answer

One commodity that is desirable in the United States that we cannot produce ourselves is coffee.

Correct AnswerverifiedShow Answer

When tariffs are levied as a percentage of a value of a commodity, they are said to be ad hominem.

Correct AnswerverifiedShow Answer

Recently, the balance of trade deficits has become so large that the U.S. is now:

Correct AnswerverifiedShow Answer

Most economists would argue that free trade should be pursued insofar as jobs can be protected from outsourcing.

Correct AnswerverifiedShow Answer

Global corporations can avoid import quotas.

Correct AnswerverifiedShow Answer

Critics of globalization argue that to prevent job loss we should protect domestic jobs by establishing tariffs on imports.

Correct AnswerverifiedTrue

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Supporters of free trade argue that if t...
View Answer

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Foreign exchange refers to the process o...
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True

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Critics of globalization argue that we s...
View Answer

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False

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True