International Trade Multiple Choice Questions: United States in the Global Economy, Papers of Introduction to Macroeconomics

Download International Trade Multiple Choice Questions: United States in the Global Economy and more Papers Introduction to Macroeconomics in PDF only on Docsity! CHAPTER 5 The United States in the Global Economy Multiple Choice Questions 1. The physical export of motorcycles from the United States to Mexico best illustrates a: A) trade flow. B) resource flow. C) financial flow. D) technology flow. 2. The physical import of DVD players to the United States from Japan best illustrates a: A) resource flow. B) financial flow. C) trade flow. D) technology flow. 3. The spending by Americans while traveling in Europe best illustrates a: A) trade flow. B) labor flow. C) financial flow. D) technology flow. 7. The building of a production plant in China by an American firm best illustrates a(n): A) trade flow. B) resource flow. C) financial flow. D) information flow. 11. The United States' most important trading partner in terms of dollar volume is: A) Mexico. B) Canada. C) Germany. D) China. 12. In terms of absolute volumes of imports and exports, the world's leading trading nation is: A) France. B) Japan. C) the United States. D) South Korea. 14. Since 1975, United States exports and imports have: A) grown absolutely, but remained a constant proportion of GDP. B) grown absolutely, but declined as a proportion of GDP. C) grown both absolutely and as a percentage of GDP. D) declined both absolutely and as a percentage of GDP. 15. In recent years the United States has: A) exported more goods and services than it has imported. B) imported more goods and services than it has exported. C) realized an approximate balance in its imports and exports. D) experienced a falling absolute dollar amount of imports and a rising absolute dollar amount of exports. 16. Approximately half of the U.S. international trade is with: A) the nations of Eastern Europe. B) the developing countries of Africa, Asia, and Latin America. C) other industrialized nations, for example, Canada, Japan, and the countries of Western Europe. D) China. 20. The major goods exports of the United States (in dollar volume) are: A) chemicals, consumer durables, agricultural products, and semiconductors. B) petroleum, automobiles, clothing, and household appliances. C) iron and steel, clothing, beef, and sugar. D) aircraft, glassware, television sets, and furniture. 21. The major goods imports of the United States (in dollar volume) are: A) chemicals, consumer durables, aircraft, and grain. B) petroleum, automobiles, household appliances, and computers. C) iron and steel, clothing, electronic equipment, and sugar. D) aircraft, paper products, television sets, and furniture. 22. Which of the following has not been a facilitating factor in world trade? A) dramatic improvements in communications technology B) general declines in tariffs C) import quotas D) improvements in transportation technology. 23. In terms of absolute dollar volume, the world's leading export nations are: A) Germany, the United States, and Japan. C) Japan, China, and Great Britain. B) the United States, Japan, and Canada. D) Japan, the United States, and France. 24. Which of the following countries has recently emerged as one of the world's top trading nations in terms of total trade volume? A) Chile B) India C) Ireland D) China 25. Multinational corporations: A) mainly are headquartered in Switzerland. B) are so named because of their heavy export volume. C) are illegal under the U.S. antitrust laws. D) are so named because of their sizable foreign production and distribution assets. Specialization and comparative advantage 26. Which of the following concepts provides the basic rationale for international trade? A) increasing opportunity costs. C) comparative advantage. B) consumer sovereignty. D) the law of supply. 73. A nation's true gain from international trade is: A) increased employment in export industries. B) an overall increase in output obtained through specialization and exchange. C) added technological knowledge. D) the tariff revenue that goes to the national treasury. 74. The Smoot-Hawley Act: A) bound the world's nations to a gradual process of tariff reduction. B) established very high tariffs on goods imported to the United States. C) exempted American exporters from the Sherman Antitrust Act. D) established the reciprocal trade agreements program. 75. The Reciprocal Trade Agreements Act: A) exempted American exporters from the Sherman Antitrust Act. B) provided technological assistance to developing countries. C) brought about considerable reductions in American trade barriers. D) eliminated American subsidies to agricultural exports. 76. The "most-favored-nation" clause of reciprocal trade agreements: A) outlaw tariffs on products for which an exporting nation has a comparative advantage. B) single out a particular nation for exemption from an import quota. C) means that any tariff reductions the United States negotiates with a specific nation will automatically apply to many other nations. D) confers special trade privileges to nations in which the United States has military bases. 77. The General Agreement on Tariffs and Trade (GATT) is based on the principle of: A) establishing a single international currency. B) tariff reductions through multilateral negotiations. C) converting tariffs to import quotas. D) establishing common environmental and labor standards for all member nations. What was the General Agreement on Tariffs and Trade (GATT)? 8.What insights about international trade came from Adam Smith and David Ricardo?