For the United States, U.S. direct foreign investment abroad is more significant than foreign investment in U.S. securities and currency. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
In a two country and two product Ricardian model, a small country is likely to benefit more than the large country because A) the large country will wield greater political power, and hence will not yield to market signals. B) the small country is less likely to trade at price equal or close to its […]
Date: September 10th, 2020
If foreign countries simultaneously stimulate their economies rather than follow independent policies A) world interest rates would rise and the pressure for exchange rate change would fall. B) world interest rates would rise and the pressure for exchange rate change would rise. C) world interest rates would fall and the pressure for exchange rate change […]
Date: September 10th, 2020
If the goods’ money prices do not change, an appreciation of the dollar against the pound A) makes British sweaters cheaper in terms of American jeans. B) makes British sweaters more expensive in terms of American jeans. C) doesn’t change the relative price of sweaters and jeans. D) makes American jeans cheaper in terms of […]
Date: September 10th, 2020
Latin America has more trade agreements than any other region, and it has some of the oldest as well. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
To help developing countries expand their industrial base, some industrial countries have reduced tariffs on designated manufactured imports from developing countries below the levels applied to imports from industrial countries. This policy is called A) export-led growth. B) generalized system of preferences. C) Most Favored Nation. D) reciprocal trade agreement. E) outsourcing. ANSWER B
Date: September 10th, 2020
Explain how free international trade tends to lead to factor price equalization under the assumptions of the HO model. What does this process predict about which groups should be in favor of or opposed to free international trade? What will be an ideal response? ANSWER Free international trade leads in each country to the […]
Date: September 10th, 2020
________ is the largest international debtor in the world. A) Brazil B) Mexico C) Italy D) The United States ANSWER D
Date: September 10th, 2020
Intraindustry trade refers to A) international trade of products made within the same industry. B) international trade of products made across different industries. C) trade that occurs as a result of comparative advantage. D) the exchange of non-similar items. E) trade that occurs mostly within developing countries. ANSWER A
Date: September 10th, 2020
A firm in long-run equilibrium under monopolistic competition will earn A) zero economic profits because of free entry. B) positive monopoly profits because each sells a differentiated product. C) positive oligopoly profits because each firm sells a differentiated product. D) negative economic profits because it has economies of scale. E) positive economic profit if it […]
Date: September 10th, 2020
