International Economics


Terms in this set (...)

What would be an item on the United States Balance of Payment current account?
payment of interest by a U.S. bank to a foreign depositor
When a country experiences a depreciation of its currency, it can expect which of these to happen?
balance of trade to improve
What MIGHT be the cause of the problems ASEAN is trying to address with the Vision 2020?
economic imbalance
I. Two countries produce the same goods for the same opportinity cost
II. Two countries produce different goods for different opportinity costs
III. Two countries are isolated by geography and politics
IV. Two countries have the same identical markets
What fact or facts support a situation where trade is disadvantageous?
I, III, and IV only
An import quota is a
legal limit on the amount of a good that can be imported into a country.
When NAFTA went into effect in 1994, what was the concern of labor leaders and environmentalists in the United States?
They believed companies would move to Mexico where wages were lower and environmental controls were less therefore leading an increase in the US unemployment rate and more pollution.
If a country is importing more than it is exporting (and therefore has a negative balance of trade), what is ONE way that its balance of payments might be raised to 0?
Through loans from other nations.
Since the 1980s, Australia has increased its role in international trade significantly. Which of these actions would have helped to achieve this result?
reducing barriers to trade
Kris is going to London, England, as an exchange student. To help figure out how much the U.S. dollar is worth compared to the British pound, Kris will keep track of the exchange rate. Which information source would be the BEST place to look for current exchange rate information?
a newspaper like The Wall Street Journal
Which is an argument in favor of free trade?
Fewer trade barriers will lead to increased trade, production, and revenues for all sides.
If China enforces the software procurement regulation, the MOST LIKELY result is
U.S. software companies will have limited access to Chinese markets.
According to the information, one U.K. pound is worth approximately
two U.S. dollars.
Based on this passage, the European Union has established
free trade for exports
Which of these would help improve Colombia's economy?
establishing free trade agreements with other countries
In 1987, the United Nations General Assembly passed a resolution that prohibited countries from buying oil from South Africa in an effort to persuade the nation to end the racist policies of apartheid. This is an example of a(n)
The purpose of the founding of the European Union (E.U.) in 1993 was to
guarantee the freedom of movement of people, goods, services and capital.
Unlike balance of trade, balance of payments includes
foreign investments.
The difference between money paid to, and received from, other nations in trade is the
balance of payments.
According to the passage, one benefit of a weak dollar might be
increased surplus grain sales.
Tariffs, quotas, and subsidies are examples of
trade barriers.