Category: The International Economy And Globalization

A. occurs when countries are granted most favored nation status
B. occurs when one country voluntarily agrees to reduce its exports to another country
C. occurs when two or more nations join to form a free-trade zone
D. Occurs when countries develop an acquired comparative advantage that makes their industries more competitive in international markets

A. Increase all domestic costs and prices
B. Keep all domestic costs and prices at the same level
C. Lessen the amount of competition facing home manufacturers
D. Increase the amount of competition facing home manufacturers

A. International movements of capital
B. International movements of labor
C. International movements of technology
D. Domestic production of different goods and services

A. The less mobile the country’s resources
B. The more mobile the country’s resources
C. The lower the country’s initial living standard
The higher the country’s initial living standard

A. relative factor competition
B. relative factor mobility
C. relative factor substitution
D. relative factor endowments

A. Imported, but not exported
B. Exported, but not imported
C. Exported and imported
D. Neither imported not exported

A. Exports should exceed imports
B. imports should exceed exports
C. Resources are more mobile internationally than are goods
D. Resources are less mobile internationally than are goods

A. To protect infant industries
B. To increase the level of imports
C. To Protect strategic industries
D. To improve the balance of payments

A. absolute advantage
B. mutual advantage
C. multilateral advantage
D. comparative advantage

A. Provide benefits for all producers and consumers
B. Increase the nation’s aggregate income
C. Reduce unemployment for all domestic workers
D. Ensure that industries can operate at less than full capacity