International Economics Questions

Which of the following falls on the minus side of the U.S. balance of payments? A. Payments to the United States for insuranceB. Payments of dividends and interest on investments abroadC. Return on capital invested abroadD. New foreign investments in the United StatesE. Spending by American tourists overseas

Which of the following falls on the plus side of the U.S. balance of payments? A. Payments to the United States for insuranceB. The costs of goods importedC. Spending by American tourists overseasD. New overseas investmentsE. The cost of foreign military

A balance-of-payments statement includes three accounts. Two of those accounts are the current account and the capital account. What is the third account found on the balance-of-payments statement? A. Investment accountB. Receivables accountC. Services accountD. Credit accountE. Official reserves account

Which of the following presents the correct picture of the outcome of increased world trade after the 1950s, contrary to Servan-Schreiber's prediction? A. Third World countries have been excluded from this economic growth leading to stark imbalances in wealth.B. The European Union has become the center of world trade, taking the position away from the United States.C. The United States has continuously maintained the positive balance of trade it attained during the 1950s.D. Economic power and potential has become more evenly distributed among the countries of the world.E. SDRs and gold have lost their utility as the basic medium of financial exchange and most monetary statistics have started relating to the U.S. dollar.

The system of accounts that records a nation's international financial transactions is most accurately called its: A. supply chain management system.B. gross domestic product system.C. net domestic product payments.D. balance of payments.E. net national product systems.

By the year 1971, the United States was witnessing a(n): A. increase in protectionist federal policies.B. positive balance of trade.C. sharp rise in domestic and international demand for all its goods.D. huge trade deficit.E. economic situation of the magnitude of the Great Depression.

After World War II, the United States led efforts like the Marshall Plan to assist in rebuilding Europe, financial and industrial development assistance to rebuild Japan, and funds channeled to foster economic growth in the underdeveloped world. These efforts were primarily aimed at: A. halting the growth of Nazi Germany.B. dampening the spread of communism.C. dampening the spread of capitalism.D. building a stronger defense force.E. creating a worldwide trade bloc to counter the OPEC countries' clout.

The GATT became part of the World Trade Organization in 1995 with the ratification of the Uruguay Round agreements. True False

Which of the following acronyms refers to the international forum that was created for member countries to engage in the negotiation of tariffs and other barriers to trade? A. UNHCRB. GATTC. WMOD. NPTE. UNDP

Which were the two major challenges faced by U.S. multinational corporations at the close of the 1960s? A. The creation of the Soviet Union and the higher tariffs on importsB. Growing jingoistic nationalism and a negative population growth rate in major international marketsC. Resistance to direct investment and increasing competition in export marketsD. Increasing Chinese domination in the manufacturing sector and the falling dollar in global marketsE. The decreased demand for U.S. goods in the global market and the growing influence of consumer rights advocacy in the home market

Which of the following factors was primarily responsible for the excess in production capacity in the United States after World War II? A. The United States government raised the tariffs on most imports by 60%.B. Many firms from other nations shifted their production facilities to the United States.C. Domestic demand was at a historic low and resulted in excess capacity.D. The returning military after World War II increased the labor supply in the United States.E. The implementation of the Marshall Plan dampened the overseas demand.

It is harder to obtain export licenses for products on the export control list than for the products that are excluded from the export control list. True False

When foreign currencies can be traded for more dollars, U.S. products and companies are more expensive for the foreign customer and exports decrease. True False

As both special drawing rights (SDRs) and the U.S. dollar have lost their utility as the basic medium of financial exchange, most monetary statistics relate to gold rather than dollars. True False

Which of the following was the most significant move of the 1980s that contributed toward international cooperation among trading nations? A. Formation of the United Nations Development ProgramB. Creation of the United NationsC. Establishment of the World Trade OrganizationD. Signing of the Montreal ProtocolE. Negotiation of the General Agreement on Tariffs and Trade

An exchange permit issued by a government can stipulate an unfavorable rate of exchange depending on the desires of the government. True False

After World War II, the United States set out to infuse the ideal of capitalism throughout as much of the world as possible. The _____, aimed at assisting in rebuilding Europe, is the plan most closely associated with this endeavor. A. Eisenhower PlanB. Marshall PlanC. Bradley PlanD. Roosevelt PlanE. Kennedy Plan

The Omnibus Trade and Competitiveness Act of 1988 focuses on assisting businesses to be more competitive in world markets as well as on correcting perceived injustice in trade practices. True False

The World Intellectual Property Organization was formed with the primary objective of overcoming inadequate monetary reserves and dealing with unstable currencies which were particularly vexing problems in global trade. True False

The GATT panels were formed to resolve bilateral trade disputes and have both advisory and enforcement powers. True False