All other trademarks and copyrights are the property of their respective owners. Global trade is trade between countries (i.e. Would this alter econ... What is the purpose of the world trade organization? International Trade Quiz. Discuss NTBs' relative effectiveness and popularity in inter... What causes trade deficits in some U.S. cities? Use a maximum of two sentences for your answer. B) tariff. As with all theories, there are opposing views. STUDY. True or false? Which of the following does not explain long-run movements in exchange rates? True or false? A trade deficit. What are the reasons behind the probable trade war between the US and China? b. the nation tends to avoid specialization... A US importer who owes an Belgian company 500,000 Euros payable in 30 days from today expects that the US Dollar will weaken during this period. Imagine that, suddenly, the U.S. dollar was abolished and each state of the United States introduced its own currency (the Texas, the Arizona, the Montana, the Wyoming, etc.). Following this move in exchange rates, we should expect to see US exports to Europe (blank) and European imports to the US (b... What would the foreign interest rate need to be to achieve interest rate parity if the domestic interest rate is 5%, the forward rate is 1.48 and the spot rate is 1.5? Which of the following options is correct? a) Share of "north-north" trade … International trade has … In order to benefit from global trade, a nation must be _____ market needs and efficiencies. What generalization can be made about the relationship between GDP and literacy? Explain the levels of economic integration and trace the evolution of economic integration in Europe. a. developing nations that do not want foreign competition b. special interests c. political tensions. (a) True (b) False, Canada finds itself as a net importer of goods and services. For example, then the economy is booming, imports usually rise. How evenly has trade grown? Provide a nation's export supply curve for a specific product. Select all that apply. What would the price of wheat be in Home in the absence of trade? Indeed, in recent years the U.S. Customs and Border Protection Service has seized over 15,000 different shipments of counte... Why do countries engage in international trade and foreign direct investment? Suppose Qd=-35P+906, Qs=25P+18 for home and Qd*=-35P+146, Qs*=25P+39 for foreign. The law of comparative advantage recommends that countries specialize in those products in which they have a comparative advantage, not an absolute advantage. Get help with your International trade homework. Regional economic integration is an attempt to achieve economic gains from the free flow of trade and investments between neighboring countries. Is the statement true or false? alternative international trade theories? most important trading partner, quantitativ... Beggar-thy-neighbor policy is: A. Which of the following statements describes an invoice from a supplier? - It is an order to purchase goods from a supplier. Indicate whether the statement is true or false. Select one country and consider the export of that country. Tag: International Trade If you're looking for Tag: International Trade and whether you’re experienced or fresher & don’t know what kind of questions will be asked in job interview, then go through the below Real-Time Tag: International Trade PDF to crack your job interview.. International Trade Interview Questions … Jordan can make either 12 poems or 4 novels in a year. c. stock exchange markets. C. countertradi... Mexican Peso Changes. international) without limiting the scope to specific countries. If the value of a nation's imports exceeds the value of its exports, which of the following is NOT true? A farmer has a comparative advantage in the product in which he... Analyze the impact of global communication on organizations in this era of the COVID-19 pandemic. a. Most Read; What would not be the case when a country allows for trade and becomes an exporter of the good? 'Cultures around the world are becoming increasingly similar, so companies should standardize their products and global marketing efforts'. Assume that the British pound is worth 1.6242 U.S. dollars. Both worsen the terms of trade. Countries A and B have two factors of production, capital and labour, with which they produce two goods, X and Y. What is the free trade price to two decimal places? a) 58% b) 12% c) 1.5% d) 2%. Importing a good is bad for everyone in the importing country. Wanda is having difficulty ''conducting business.'' What is the difference between international marketing and exporting? Explain how it is possible for a country to consume a greater quantity of goods and services than it is actually capable of producing. The overall growth of global trade has more than doubled since 2000. When trading with more developed countries: a. less developed countries do not have a comparative advantage in the production of any goods or services. Tariff methods for international trade … Suppose individuals wish to obtain the most accurate comparison of living standards between Australia and China. If a good is imported into (large) country H from country F, then the imposition of a tariff in country H does which of the following compared to the free trade situation? If the Government restricts the import of chocolate, the result will be _____. How do the gains exceed the losses? They include A. maquiladora zones which allow firms to produce goods for export without paying tariffs on imported parts an... Write an introduction paragraph on "conducting business globally/internationally" (The intro is for a research paper focused around working for FedEx Express). True or False: A country is made richer by its exports and poorer by its imports. In recent days, trillions of dollars of wealth has been wiped off global stock markets. If your answer is positive, do not include a plus sign. d. money markets. Is it best to outsource jobs overseas? A) The U.S. price level decreases. George Ackerlof famously demonstrated that markets are not guarantors of quality by his analysis of used car markets. D) comparative advantage. Because I believe we need to see the demand in its country to decide whether such a country needs to import the goods. False. Illustrate with an example. "The losses of domestic consumers exceed the gains of domestic producers". a. What is the impact of the Coronavirus pandemic on global trade? When developed markets falter, Asian markets plummet." The international trade map shifted during 2017, as new accords were reached, old ones were revisited, and digital technology reshaped the way in which the world conducts trade. Tom can produce a hammer at an opportunity cost of $1.10. 64 Chapter 5. International trade policy 67 5.1. … Which of the following are trade barriers? What would a higher dollar value (exchange rate) mean to local producers? What is it called when a country can produce an item at a lower opportunity cost? Learn vocabulary, terms, and more with flashcards, games, and other study tools. (This means he gives up producing something worth $1.10.) Explain. Question #2: What interests you about this particular job? International Trade. Market in which currencies buy and sell and their prices settle on is called the. Give four reasons why the factor prices may not be equalized across countries. What are the long term and short term benefits for international trade? Provide the names of three trade agreements and provide a brief description of each. True b. What is the impact of the COVID-19 pandemic on Middle Eastern economy? Why are MNCs often able to produce more cheaply and sell at a lower price than local firms? The following graph shows the domestic supply of and demand for oranges in New Zealand. Define the term and explain a situation that demonstrates the 'real world' application of each of the following. Do higher saving rates affect long�run economic growth? Domestic production of coffee ri... International trade leads to complete equalization of factor prices. Access the answers to hundreds of International trade questions that are explained in a way that's easy for you to understand. Distinguish between interindustry trade and intraindustry trade of international trade. Right answer: “I admire and identity with … What are the pros and cons? A. NAFTA B. GATT C. WTO. Free Trade vs. Imports are the good thing about international trade, whereas exports are more like the necessary evil. The incoming Biden administration will inherit a US-China trade relationship at its lowest point in decades. A firm that produces a product with universal but seasonal appeal and is trying to level its income stream and reduce or eliminate wide variations in dome... How do you find a tariff classification number? A) 119,998 B) 71,642 C) 84,965 D) 201,000. Refer to the above diagram, where S_d and D_d are the domestic supply and demand for a product and P_c is the world price of that product. Bill of lading a. In trade between Australia and Japan, which... Tariffs and quotas can potentially benefit domestic producers of protected products. Can growth ever improve country's terms of trade? Explain. 17. Indicate whether the statement is true or false. Which of the following statements is correct? The International Traffic in Arms Regulations (ITAR) are administered by the U.S. Department of State under the Directorate of Defense Trade Controls (DDTC) and include controls … Which exchange-rate system does not require monetary reserves for official exchange-rate intervention? Explain the effects that a decrease in taxes has for the domestic economy with zero capital mobility under a fixed and a flexible exchange rate system. Why would removing a trade restriction, like a tariff, lead to more rapid economic growth? Countries trade primarily to foster diplomatic relations between each other. How many U.S. dollars are your Swiss francs worth? ________ refers to the purchase, sale, or exchange of goods and services across national borders. In the United States today, imports are over: a. What is the... Barclays Bank of London has offered the following exchange rate quotes: 191.90 yen/euro 12.5750 won/yen What is the cross rate between the Korean won and the British pound? B. saving decreases. What is the meaning of a debit entry in the balance of payment? Home's demand curve for wheat is D = 100 - 20P. Can't find the question you're looking for? C. a quota placed on imported goods. This IB Economics topic begins with the question: … Why? Its supply curve is S = 20 + 20P. What are the potential costs and risks to Apple? A. This is basically the exchange of services, product and capital across international … The world price of oranges is $820 per ton and is represented by the horizontal black line. D. a tax placed on imported goods. Support activity 2. Anna: 2 cellphones = 4 computers George: 2 cellphones = 1 comput... What are the effects of a decrease in Canadian interest rates? Explain, how trade can make everyone better off. b. a. vehicles b. clothing c. power-generating machinery d. airplane parts, What is it called when countries block the importation of certain products into their country? Materials requisition c. Bill of lading d. Approved purchase order. Choose a product made by a global organization. True B. Explain how you think different resources would affect the economy. How did Adam Smith's views on international t... Why isn't wine bottled near the market, as beer and cola are? Describe the aftermath of the permanent normal trade relation deal on the US economy, with details on: Unemployment rates, unemployment types, and industries most affected, Inflation, GDP, Trade de... Why would the U.S. government increase its demand for imported goods? a. In this revision video we work through four examples of multiple choice questions on aspects of international trade. To inc... 1) Find out firsthand the global impact on your life. Why might different documentation be used for an export to a non-affiliated foreign buyer, who is a new customer, as compared to an export, to a non-affiliated foreign buyer, to whom the exporter h... EcoWorld is a manufacturer of enclosed, decorative environments. According to the Heckscher-Ohlin theory, countries should engage in a lot of intra-industry trade. Trade occurs because of differences in the availability of factor inputs across countries and differences in the propor... What is the WTO? B. allows for sustained trade deficits by some nations. The United States restricts imports but, at the same time, also supports the WTO and international banks whose objective is to enhance world trade. What are two necessary conditions for the rise of an ideal global market? Anderson Inc. sells $900 of merchandise on account to Baltic Company with credit terms of 2/10, n/30. In 2006, which fast food chain distributed Fair Trade products? Which of the following are reasons for the existence of trade barriers? D. will neither expor... Illustrate in the world market below an export subsidy granted to purchase of exports (demand in the trade market). How does this differ from the production of commodities like oil or soybeans? True or false? All rights reserved. Please choose two, describe them, and apply them to the current global economy, and explain what they both mean for management in the global markets. Fixed rate exchange systems are calculated according to supply and demand. This is definitely not true when a country allows for trade and becomes an exporter of the good. 2) engage in the pattern of "infant industry" development. International Trade 9 Questions | By Jeffusmc | Last updated: Jan 8, 2013 | Total Attempts: 2531 Questions All questions 5 questions 6 questions 7 questions 8 questions 9 questions What do you make of his arguments? 26 percent of GDP. Match each item on the left with the most appropriate item on the right. If the Trump administration wanted to increase exports, what combination of economic measures and policies would most effectively accomplish this? Portlandia mainly exports copper. Compare and contrast export-promotion and import-substitution strategies of development. An increase in the money supply will affect the level of economic activity in the country through a sequence of events. b. the domestic quantity supplied. The authority to accept incoming goods in receiving should be based on a(n): a. c. the terms of trade. Indicate whether the following statement is true or false: Import substitution is a program promoting local production of products that would otherwise be imported. True or false: The terms 2/10, net/30 mean that a 2 percent discount is allowed on payments made within the 10 days discount period. A British-made component costs 36 U.K. pounds. Which of the following is true of the trends of imports and exports (measured by percentage of entire economy) in the US? What is the difference between Double Entry System and Single Entry System? Dollar (blank), it becomes (blank) valuable in world markets. Suppose that, as part of an international trade agreement, the U.S. government reduces the tariff on imported coffee. The terms of trade move against primary producers in long run. b. trade in services. Weigh the pros and cons of a large trade deficit. Countervailing duties are an example of quotas. In addition to import-competing industries seeking trade restrictions, what other arguments are used to restrict trade? A trade war. Test. The main goal of trade barriers is: A. to keep imports out at the expense of wars between countries. Which British colonial area generated the most exports in terms of their dollar value (circa 1774)? Anika Nicole, Wordsmith Answered: Jun 20, 2018 "The losses of domestic consumers exceed the gains of domestic producers". b. purchasing power parity. Imagine this scenario: you are the marketing manager for a small coffee company, Karrie's Koffee. Select all that apply. 1. All of the following are possible forms of exporting except [{Blank}]. a) What happens to saving, investment, net exports, the in... 'The benefits of global trade are felt globally while the effects of it are felt locally.' If the economy is opened to free trade, the price and quant... Why is international trade a win-win game? There is little or no presence of small firms that are global very early in their business lives. 2. What are some examples of goods that the United States has a comparative advantage in producing? B. Each Non-Equity Modes of entry by a MNC are different, at least, in the amount of local value added, and export earnings they generate in a host country. University. a. tariffs b. quotas c. price floors d. wage ceilings e. embargos f. government spending. If we expect our currency to appreciate with respect to the currency of our Northern neighbor, and the interest rates are the same in both nations, which nation does it make sense for us to invest... Do you prefer a strong dollar or a weak dollar given the state of the economy today? Suppose a home economy is large in at least some export and some import markets. Indicate whether the following statement is true or false: The bill of lading is the 'birth certificate' of the goods being shipped and indicates the country where they originate. The customer pays for those services on September 15. As a member of Congress, how would you justify th... Is Chindia a friend or a threat? a. Do you agree with this statement? How many different countries' names appear on the labels in your clothes? With big boost from sugar cane, Brazil is satisfying its fuel needs Brazil is almost self-sufficient in ethanol. The _____ (fall/rise) in the exchange rate ill lead to a _____ (rise/fall) in... An increase in the money supply will affect the level of economic activity in the country through a sequence of events. Spell. Which component of a nation's balance of payments recognizes the purchase and sale of real and financial assets between nations? Lack of export financing remains a significant barrier to small businesses selling in foreign markets. This test is Rated positive by 92% students preparing for UPSC.This MCQ test is related to UPSC … Provide real-life examples in response. the USA and France)? Which of the following describes the situation? Describe how the world has changed in terms of global trade in the past 10 years. (3.0 pts) Economic expansion throughout the rest of the world raises the world interest rate. False. On September 8, a company provides services on account to a customer for $2,300, terms 5/10, n/30. Go ahead and submit it to our experts to be answered. True False If the price of Good X is $10 and price of Good Y is $15, the slope of the budget constraint i... 1. Do you agree or disagree with this reasoning? International Trade Questions and Answers Based on the prescribed book "International Economics : Trade and Finance" by Dominick Sal... View more. Explain why an export subsidy worsens a country's terms of trade. A small country s demand curve is given by Q=20-P and its supply curve is given by Q=(P/2)-(5/2). When will the Russian stock market, especially large financial institutions like Sberbank or VTB, recover from the current downturn? For a quick refresher on the facts and trends that shaped international trade … When do we invoice if Incoterms 2010 are CIP (destination address)? 22 percent of GDP. Do higher investments in research and development affect long�run economic growth? Q1. Discuss new European alternatives to LIBOR. - It is a document authorizing a payment to a supplier. b. With free trade and a world price that is lower than the domestic market equilibrium price: A. domestic consumption will fall and domestic production will rise. Technology is the same in both countries. Do you think the factor endowment theory is realistic? What are three factors that affect exchange rates? Justify your answer. The table gives some information about Nordland's international transactions. How can a country identify the product... How will the U.S. current account deficit affect the wealth of future Americans? Geoff Riley FRSA has been teaching Economics for over thirty years. When people trade, how do both sides benefit? An importer? Different currencies trade under different exchange-rate regimes. Created by. Devaughn and Grace can produce forks and spoons according to the following schedule: Who has a comparative advantage in producing spoons? Then the Bs/L will be a/an: A. A tariff is A. a quota placed on imported goods. Do globalization and financialization undermine labor's bargaining power? What is the opportunity cost of going to college? Suppose the U.S.-EU exchange rate is $1.8 per Euro, the U.S. has 7% inflation, and the EU has 12% inflation. Read http://www.latimes.com/opinion/op-ed/la-oe-griswold-globalization-and-trade-help-manufacturing-20160801-snap-story.html https://www.hillaryclinton.comRead http://www.latimes.com/opinion/op-ed... Why is trading mutually beneficial but does not necessarily lead to an equitable outcome? When is it a threat to workers? The $/Euro exchange rate changes from $1.20 = Euro 1 to $1.35 = Euro 1. The International Trade Administration, U.S. Department of Commerce, manages this global trade site to provide access to ITA information on promoting trade and investment, strengthening the competitiveness of U.S. industry, and ensuring fair trade and compliance with trade … Suppose that the US exchange rate decreases by 0.10%. Write. Further, suppose that the importing country places a tariff of 0.14 on the product. Select all that apply. Explain your reasoning. Explain the various barriers to free trade and the motives for their use. In the process of inter-temporal trade: (a) The country that has the higher real rate of interest is worse off. Suppose new, high- yield grains are introduced to Norway and the number of labor hours needed to grow a ton of grain there is cut 5 hours to 2.5 hours. If so, when? The table below shows the possible productions of Rachel and Fred for pens and pencils. ECO 352 – International Trade – Spring Term 2010 SAMPLE FINAL EXAMINATION IMPORTANT INSTRUCTIONS: 1.No electronic equipment – computers, calculators, cell phones etc. Record the transactions for the company when... Why is it important that a country or region specialize in the production of a good for which it has the lowest opportunity cost? B. b) GDP is less than the sum of consumption, i... Michigan has surplus Autos and wants Lettuce Texas has surplus Lettuce and wants Apples Washington has surplus Apples and wants Autos On the basis of the information and assuming trade occurs betw... a) Suppose a U.S. corporation imports a machine from the UK and needs to pay 100,000 pounds in 90 days. C) Net expo... An exchange rate that is set by official government policy is called a exchange rate. Should imports to the United States be curtailed by, say, 20%, to eliminate our trade deficit? Justify your answer. Countries trade with each other because a. it allows their scarce resources to be allocated more efficiently b. it increases product choices for their citizens c. it provides their citizens w... Illustrate and explain, for each statement below, why the statement is either TRUE or FALSE. What are the three factors that affect exchange rates? B. governmental surplus. There are other two... Trade restriction can sometimes be necessary to make the economy grow. What will happen if a country allows trade and the domestic price of a good is higher than the world price? B. c. the way in which national economies are becoming increasingly interconnected with one another.... What are the pros and cons of free trade? Explain. If merchandise is sold for $14,000 subject to credit terms of 1/15, n/30, the entry to record collection in full within the discount period would include a: a. credit to Sales Discounts for $140. A Japanese stereo with a price of 60,000 yen will cost: a) $60 b) $600 c) $6000 d) None of the above. What is the importance of the notes to the financial statements and the auditors report? Which of these modes of entry generate t... 1. C) quota. What is the difference between Evaporation and Distillation? c. gain in producers' surplus. We hope the given NCERT MCQ Questions for Class 11 Business Studies Chapter 11 International … If the trade war occurs, how will it impact the global economy? Explain your answer. Which of the following is true about the terms of trade effect of a tariff and a production subsidy for a large country?