Search
.Management Sciences
Category: The International Economy And Globalization
Free trade is based on the principle of ?
A. Comparative advantage
B. Comparative scale
C. Economies of advantage
D. Production possibility advantage
When countries from large trading blocs like the EU, the size of the bloc has the effect of improving them ?
A. balance of trade
B. comparative advantage
C. balance of payments
D. terms of trade
The movement to free international trade is most likely to generate short-term unemployment in which industries ?
A. Industries in which there are neither imports nor exports
B. Imports competing industries
C. Industries that sell to domestic and foreign buyers
D. Industries that sell to only foreign buyers
If a country can produce 10 of product A or 4 of product B the opportunity cost of 1B is ?
A. 0.4A
B. 2.5A
C. 10A
D. 1B
To prevent the external value of the currency from falling the government might ?
A. Reduce interest rates
B. Sell its own currency
C. Buy its own currency with foreign reserves
D. Increase its own spending
Recent pressures for protectionism in the United States have been motivated by all of the following except ?
A. U.S firms shipping component production overseas
B. High profit levels for American corporations
C. Sluggish rates of productivity growth in the United States
D. High unemployment rates among America workers
The level of the equilibrium exchange rate offsets international differences in ?
A. comparative advantage
B. absolute advantage
C. opportunity cost
D. relative costs
The largest amount of trade with the United States in recent years has been conducted by ?
A. Canada
B. Germany
C. Mexico
D. United Kingdom
For the United States, commercial jetliners are ?
A. Imported, but not exported
B. Exported, but not imported
C. Imported and exported
D. Neither exported nor imported
Free traders maintain that an open economy is advantageous is that it provides all of the following except ?
A. Increased competition for world producers
B. A wider selection of products for consumers
C. The utilization of the most efficient production methods
D. Relatively high wages levels for all domestic workers
Recent Comments