Buy International Trade and Finance Discusion

Buy International Trade and Finance Discussion
Order 5897362
Buy International Trade and Finance Discusion
1. When U.S. interests rates rise, we see
I. an increase in capital investment
II. foreign tastes for American goods strengthen
III. a decrease in capital investments and an increase in financial
investments
IV. a decrease in financial investments
(A) I and IV only
(B) III only
(C) I, II, and II only
(D) II only
(E) III and IV only
2. A tariff refers to
(A) a prohibition against trading particular goods
(B) an elimination of trade with foreign nations
(C) the restriction on the sale of exports in another country
(D) a tax on imported goods
(E) the price difference between production cost and sale price
3. In a competitive market, nation XYZ produces bananas. Assuming
there is free trade and the domestic price is higher than the world
price, which of the following is true?
(A) There are no benefits to importing or exporting bananas.
(B) Nation XYZ will import bananas to eliminate a domestic
surplus.
(C) Nation XYZ will export bananas to correct a domestic shortage.
(D) Nation XYZ will import bananas to correct a domestic shortage.
(E) Nation XYZ will export bananas to eliminate a domestic
surplus.
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4. Suppose the United States has a surplus balance in the current
account. Which of the following statements is true?
(A) There is a balance of payments deficit.
(B) There was more foreign capital invested in the United States
than there was U.S. investment abroad.
(C) There is a trade surplus.
(D) The United States sent more dollars abroad than there was
foreign currency received.
(E) There is a trade deficit.
5. When the United States places an import quota on imported rice,
(A) consumers will buy rice substitutes
(B) consumers will use more rice and rice products
(C) the supply of rice decreases
(D) the United States will begin to export less rice
(E) makers of U.S. rice products suffer
6. Which of the following is a benefit of a protective tariff on imported
timber?
(A) The domestic timber industry is made vulnerable to global
competition.
(B) The domestic timber industry is protected from global
competition.
(C) The price of foreign timber decreases.
(D) The United States consumes more foreign timber.
(E) There are no known benefits of a protective tariff.
7. The United States instates a protective tariff on particular goods to
(A) limit the amount of goods imported into the country
(B) increase the amount of goods imported into the country
(C) encourage trade with foreign competitors
(D) protect itself from foreign competition
(E) balance a trade deficit
8. Tariffs and quotas share many of the same economic effects. Which
of the following statements is false?
(A) Economic resources are reallocated toward inefficient
producers.
(B) Lower consumer surpluses hurt consumers.
(C) Artificially high prices hurt consumers.
(D) Inefficient domestic producers are protected at the expense of
foreign firms creating dead weight loss.
(E) Tariffs and quotas collect revenue for the government.
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9. If the U.S. dollar depreciates relative to the Chinese yuan, then
(A) U.S. goods sold in China would become cheaper
(B) U.S. goods sold in China would become more expensive
(C) more yuan are needed to buy a dollar
(D) prices would not differ for U.S. or Chinese goods
(E) none of the above
10. When the Japanese yen decreases in value relative to another
currency, it has
(A) appreciated
(B) depreciated
(C) fixed
(D) floated
(E) inflated
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