Policies that .... tend to cause ...... a) decrease investment / a trade surplus b) increase investment / a trade surplus  c) increase investment / a trade deficit d) decrease investment / a trade deficit e) increase investment / no effect on the trade balance

Countries engaged in international trade specialize in production based on:     A)  relative inflation rates.   B)  relative exchange rates.   C)  comparative advantage.   D)  relative levels of GDP.

You are watching the nightly news. A political candidate being interviewed says, "I'm for free trade, but it must be fair trade. If our foreign competitors will not raise their environmental regulations, reduce subsidiaries to their export industries, and lower tariffs on their imports of our goods, we should retaliate with tariffs and import quotas on there goes to show them that we won't be played for fools!"

2. 会。 B T SI QUESTION 30 (A: decreased; B: remained the same; C: increased; D: hurt The economic interdependence among nations has the world) in the recent past. QUESTION 31 Country A imports $40 of shirts and exports $40 of under wears. Its balance of trade is (A: -20; B-10; C: 0; D: +10; E:-20). QUESTION 32 Commodities exported and imported by each nation constitute the gains from trade; D: pattern of trade). (A: basis for trade; B: losses from trade; C: Save All Answers MAR 12 étv MacBook Air 08 F3 DD F7 F2 F4 F5 F8 F11 & %24 2. 3. 4. 5. 9. 7. 8. } 1 M E. | H. 7. C. N

Read the news article “The China Syndrome” and discuss on the following questions:http://www.huffingtonpost.com/scott-paul/the-china-syndrome_b_1472301.htmlWhat has been the impact of granting China permanent trade status? Who has benefitted?How much has US dependency on lower priced goods from China, hurt overall job growth?Since it is considered that at some point China will drive the global economy, it is a soundagreement that reducing the trade barrier will affect the Chinese economy, causing a ripple effectfor global economy? Do you agree or disagree? Explain.

"Analyze the impact of trade tariffs on small economies, particularly focusing on import- dependent sectors. Discuss how tariffs can affect local businesses, consumer prices, and trade relationships. Additionally, evaluate the potential for retaliatory measures by trading partners and the long- term consequences on global trade dynamics and economic diplomacy."

The world price can be higher than the domestic price; this generates exports rather than imports. Suppose we have such a situation in an open economy. True or false? i. Compared to a situation without any trade (i.e. without exports), consumer surplus is larger in the open economy. ii. Compared to a situation without any trade (i.e. without exports), domestic producer surplus is larger in the open economy. iii. Suppose the government imposed an export duty - a tax on each unit exported (this occurs in some countries for agricultural products). Then consumer surplus increases and domestic producer surplus decreases. iv. If consumers suddenly prefer to consume more of the good, the price that they have to pay might still not change.

Look at a country’s Terms of Trade (T.O.T.). It is assumed that when the T.O.T. value increases the country’s wellbeing goes up, and when the T.O.T. value declines, the country’s wellbeing is reduced. Do you agree??? Explain!!!

Which of the following is TRUE regarding trade and wages?     Countries with low productivity levels will always have lower wages than high-productivity nations whether they trade or not.   Trade can increase wages by increasing the productivity of labor.   Trade directly increases productivity, which in turn increases wages.   Trade helps to equalize wages between high- and low-productivity countries.

Q8 An agreement among a group of countries to eliminate trade barriers among themselves, to present a common trading front to the rest of the world in terms of common tariffs, but which does not permit free movement of factors of production among member countries, is called a... a. Free-trade area. b. Customs union. c. Confederation. d. Reciprocity association. e. Common market.