Multiple-Choice Questions for International Economics by Dr. Bob Carbaugh Department of Economics Central Washington University Chapter 1: The International Economy and Globalization A primary reason why nations conduct international trade is because: a. Some nations prefer to produce one thing while others produce another *b. Resources are not equally distributed to all trading nations c. Trade enhances opportunities to accumulate profits d. Interest rates are not identical in all trading
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“Completely free trade would be fair. ‘Fair trade’ encourages people to stay in uncompetitive sectors in which they will always be poor.” Discuss. The concept of the ‘Fair Trade’ initiative can be summarised with reasonable simplicity; “Fair Trade works to alleviate poverty in the global South through a strategy of ‘trade‚ not aid‚’ improving farmer and worker livelihoods through direct sales‚ better prices and stable market links‚ as well as support for producer organizations and communities”
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determine the equilibrium price and quantity for cloth in the US in the absence of [international] trade. P 0 1 2 3 4 5 6 7 8 QD 16 14 12 10 8 6 4 2 0 QS -- -- 0 4 8 12 16 20 24 b) If the US now allows free trade and P=$2.00 on the world market and we assume no transportation costs‚ how much cloth will the US consume‚ produce and import with free trade? When the price is 2‚ The cloth will be consumed 12 tons‚ and produced
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UNFAIR TRADE by Marc Sidwell Adam Smith Institute London 2008 Bibliographical information The Adam Smith Institute has an open access policy. Copyright remains with the copyright holder‚ but users may download‚ save‚ and distribute this work in any format provided: (1) that the Adam Smith Institute is cited; (2) that the web address adamsmith.org is published together with a prominent copy of this notice; (3) the text is used in full without amendment [extracts may be used for criticism or
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economy after the World War II. The economic development was generally provided by enlarging amount of international trade‚ especially exporting of manufactured goods. The secrets which allowed to reach the “Economic Miracle” consist of highly effective economic and trade policies in the presence of impartial civil service.[1] But in our investigation the most interesting thing is international trade of Japan. On the year 2010 the total amount of exported goods in Japan was counted up to 769‚8 million
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At no time in history had the issue of Mindanao independence been brought to a critical point as it is today. The issue had already been expressed as early as 1910 when the Zamboanga business sector presented a written petition to isolate the island for the development of "plantation interests". The same sentiment was aired in the written petition of Muslim datus‚ sultans‚ and leaders in 1930 when the question of Philippine independence from the United States elicited Muslim preference for exclusion
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Questions on Free Trade 1. Why should countries engage in international trade rather than remaining self-sufficient and avoiding the unfair competition of low-paid foreign workers? By just purchasing products from countries with low-paid foreign workers and not producing your own goods for trade countries will become dependent on that particular country. Specialization allows countries to develop a competitive advantage on products they produce the best and outsource produces and services
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Trade agreements are a way for Americans to create opportunities for themselves in the economy. Today the United States have free trade agreements with seventeen different countries. In the rest of the world the companies in the US that want to expand their business globally have to go through the process of figuring out different trade barriers and tariffs. A trade barrier is a restriction on international business. A tariff is a tax on exported goods. The world trade organization helps regulate
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TEST REVISION FREE TRADE Free trade exists between nations when all obstacles to trade such as tariffs are removes Free trade occurs because of differences in the quantity and quality of resources COMPERATIVE ADVANTAGE The advantage one country has over another in the production of a particular good or service. A country has a comparative advantage if it can produce a product at a lower opportunity cost than its trading partner. AUSTRALIA KEY EXPORTS Mining- Iron Ores‚ Coal‚ Gold‚ Natural
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Free trade can be defined as the situation whereby governments impose no artificial barriers to trade that restrict the free exchange of goods and services between countries with the aim of protecting domestic producers from foreign competitors. The argument for free trade is based on the economic concept of comparative advantage. Comparative advantage is the economic principle that nations should specialize in the areas of production in which they have the lowest opportunity cost and trade with
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