International Economics Questions

Which of the following was designed to primarily deal with trade deficits, protectionism, and the overall fairness of the U.S. trading partners? A. The Neutrality Pact of 1941B. The Omnibus Trade and Competitiveness Act of 1988C. The League of Nations Act of 1920D. The Hawley-Smoot Tariff Act of 1930E. The International Monetary Fund and Bank Act of 1945

_____ and the World Bank Group are two global institutions created primarily to assist nations in becoming and remaining economically viable. A. Amnesty InternationalB. The World CourtC. The International Monetary FundD. The International Red CrossE. The International Federation of Blue Cross

To overcome the problems of inadequate monetary reserves and unstable currencies that plagued international trading before World War II, the _____ was formed. A. European UnionB. World Trade OrganizationC. Federation of International Trade AssociationsD. International Monetary FundE. United Nations Development Program

Which of the following is an area that is considered critical in improving U.S. trade in the context of the Omnibus Trade and Competitiveness Act? A. Market accessB. Quality standardsC. Exchange stabilityD. Trade volumeE. Sustainability in trade

Which of the following is an adverse consequence of globalization? A. Nationalization of private sector holdingsB. Lower and more competitive oil pricesC. Reduced variety and quality of goods and servicesD. Worker exploitation and domestic job lossesE. Provision of loans from the World Bank

Developed by the International Monetary Fund to cope with universally floating exchange rates, _____ represent an average base of value derived from the value of a group of major currencies. A. exchange permitsB. special drawing rightsC. floating currenciesD. gold ratesE. dollar parities

Which of the following is a basic criticism of global financial institutions? A. They failed to focus on the aim of reducing inequalities between the rich and the poor countries.B. They failed to help the Asian countries substantially when they underwent a major financial crisis in the 1990s.C. They failed to respect the autonomy of member nations by deeming any bilateral agreements between members as illegal if made without their approval.D. They failed to foresee and counter the unintended effects of globalization like pollution, exploitation, and cultural extinction.E. They failed to suppress the terrorists who were responsible for the attack in London that coincided with the G8 summit.

Which of the following are becoming a popular way to circumvent WTO guidelines and impose new duties? A. Antidumping dutiesB. Basic excise dutiesC. Special excise dutiesD. Production taxesE. Manufacturing taxes

The Foreign Corrupt Practices Act (FCPA) was specifically addressed in the _____ section of the Omnibus Trade and Competitiveness act. A. market accessB. export expansionC. import reliefD. foreign exchange regulationE. trade deficit

Which of the following types of nontariff barriers strictly falls under the category of specific limitations on trade? A. Import credit discriminationsB. Export subsidiesC. Voluntary export restraintsD. EmbargoesE. Packaging, labeling, or marking standards

The marketing manager for Grand Products wants to export the company's range of beer products to a Gulf country. However, he discovers that there is a complete restriction on the import of any form of liquor into that country. This is an accurate example of a(n) _____. A. orderly market agreementB. quotaC. monetary barrierD. voluntary export restraintE. boycott

The special drawing rights (SDRs) developed by the IMF are in effect: A. black gold.B. exchange permits.C. floating currencies.D. paper gold.E. virtual dollars.

Which of the following agreements makes it possible to challenge the restrictions in Indonesia that prohibit foreign firms from opening their own wholesale or retail distribution? A. Trade-Related Aspects of Intellectual Property Rights (TRIPs)B. Trade-Related Investment Measures (TRIMs)C. General Agreement on Trade in Services (GATS)D. Marrakesh AgreementE. Stockholm Agreement

Which section of the Omnibus Trade and Competitiveness Act recognizes that foreign penetration of U.S. markets can cause serious competitive pressure, loss of market share, and, occasionally, severe financial harm? A. The market access sectionB. The export expansion sectionC. The import relief sectionD. The foreign exchange regulation sectionE. The trade deficit section

Which of the following is the major reason behind the failure of American MNCs to completely dominate the European markets as predicted by Servan-Schreiber? A. The resurgence of competition for U.S. businesses from all over the worldB. The elimination of import taxes in the European countriesC. The restructuring of U.S industriesD. The decadence of communismE. The dissolution of colonial powers

Which of the following statements is true about the status of protests against global financial institutions? A. Organized protests against global financial institutions have been catching the attention of the world since the establishment of the IMF in 1945.B. The sole focus of the anticapitalist protestors has been the environmental impact of globalization and the need for stability.C. The "antisweatshop" campaigns by students in America have translated into changes in policy.D. The entire gamut of anticapitalist protests have been weak and ineffectual in the face of the tremendous power of global financial institutions.E. The protests against global financial institutions have been organized yet nonviolent as a rule.

A tax imposed by a government on goods entering at its borders is most accurately termed as a(n) _____. A. boycottB. asterisk billC. tariffD. quotaE. writ

Tall Pine Plywood Company has just received a notice that a shipment of plywood (2 metric tons) has been rejected by the customs administration of the recipient country because the knotholes commonly found on a plywood sheet are too large. Which of the following categories of nontariff barriers primarily uses such quality issues as a trade barrier? A. QuotasB. LicensesC. EmbargoesD. BoycottsE. Standards

The _____ of the balance-of-payments statement is most likely to record all exports and imports of gold, increases or decreases in foreign exchange, and increases or decreases in liabilities to foreign central banks. A. current accountB. capital accountC. credit accountD. receivables accountE. reserves account

Which of the following trade policy tools makes it mandatory for its importers who want to buy a foreign good to apply for an exchange permit? A. TariffB. Import quotaC. Blocked currencyD. Government approvalE. Export levy