Exxon Mobil wants to pay 160,000 to a German supplier. They get an exchange rate quotation from its own commercial bank and instructs it to debit their dollar account and pay 160,000 to the supplier’s German account. If the exchange rate quoted is $1.2 per euro, how much is debited to Exxon Mobil’s account? A) […]
Date: September 10th, 2020
International free trade always hurts the nations that run deficits, and benefits the nations that run surpluses. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
It is possible for every nation to have BOP surpluses. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
The HPAE “economic miracle” illustrates a clear case in which A) exports and growth were positively related. B) exports were promoted by successful economic growth. C) economic growth was determined by successful export promotion. D) trade policy dominated other considerations in promoting economic growth. E) import substitution enhanced economic development. ANSWER A
Date: September 10th, 2020
Which of the following statements is TRUE? A) Free trade is beneficial only if your country is strong enough to stand up to foreign competition. B) Free trade is beneficial only if your competitor does not pay unreasonably low wages. C) Free trade is beneficial only if both countries have access to the same technology. […]
Date: September 10th, 2020
During the global financial crisis of 2008-2009, it appeared that overt global policy coordination was not practiced, but countries were all following similar policies, such as decreasing interest rates. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Futures contracts differ from forward contracts in that A) future contracts ensures you will receive a certain amount of foreign currency at a specified future date. B) future contracts bind you into your end of the deal. C) future contracts allow you to sell your contract on an organized futures exchange. D) future contracts are […]
Date: September 10th, 2020
The remarkable success of the HPAEs proves that A) trade policy is the key to successful economic growth. B) trade policy is irrelevant to successful economic growth. C) high educational standards is the key to successful economic growth. D) dual economies must suffer economic stagnation. E) trade policy can lead to a higher standard of […]
Date: September 10th, 2020
Under fixed exchange rate, in general which one of the following statements is the MOST accurate? A) The following condition should hold for domestic money market equilibrium: Ms/P = L(R , Y). B) The following condition should hold for domestic money market equilibrium: Md/P = L(R , Y). C) The following condition should hold for […]
Date: September 10th, 2020
The Shipbreakers of Alang utilize much labor and little capital, thereby supporting the applicability of the A) factor proportions explanation of the sources of comparative advantage. B) specific factor theory of comparative advantage. C) monopolistic competition theory of comparative advantage. D) scale economies theory of comparative advantage. E) basis of the non-dumping legislation. ANSWER […]
Date: September 10th, 2020
