International Economics Questions

What was the most apparent reciprocal impact of the foreign economic assistance given by the United States? A. European countries formed an alliance to counter the OPEC countries' clout.B. Outflow of labor to the recipient countries increased dramatically.C. All recipient countries appointed Americans to manage their central banks.D. Purchases of U.S. agricultural products, manufactured goods, and services by the recipient countries increased.E. Distribution of economic power and potential became more uneven.

Antidumping laws were specifically designed to prevent foreign producers from investing in the U.S. markets. True False

In a balance-of-payments record, if the credit and debit offset each other, it means that a nation is in particularly good financial condition. True False

The decisions taken by the World Trade Organization in solving trade disputes among members are binding ones. True False

The Omnibus Trade and Competitiveness Act gives the U.S. president authority to restrict sales of a country's products in the U.S. market if that country imposes unfair restrictions on U.S. products. True False

The rapid growth of war-torn economies and previously underdeveloped countries, coupled with large-scale economic cooperation and assistance that followed World War II, led to: A. the rise of new global marketing opportunities.B. the decrease in demand for American goods worldwide.C. the dissolution of the GATT.D. the spread of communism by the United States.E. the sharp reduction in the production capacity of the United States.

The United States and other countries require some products to contain a percentage of "local content" to gain admission to their markets. True False

After World War II, the United States provided assistance to other countries to develop their markets and improve global trade though it gained no returns on these initiatives. True False

In the context of blocked currency, blockage is accomplished by refusing to allow an importer to exchange its national currency for the currency of the seller. True False

Quotas strictly permit importing on a case-by-case basis. True False

Quotas are more flexible than import licenses. True False

A case might be made for the temporary protection of markets with excess productive capacity or excess labor when such protection could facilitate an orderly transition. True False

In general, tariffs decrease inflationary pressures. True False

Protection of an infant industry is recognized by economists as a valid argument in favor of protectionism. True False

It is mandatory for importers who want to buy a foreign good from a foreign country to apply for a business permit in that country. True False

What was the outcome for the GATT after the ratification of the Uruguay Round agreements? A. The GATT allowed the United States to increase its import tax.B. The GATT became part of the World Trade Organization.C. The GATT directly led to the uneven distribution of economic power and potential.D. The European Union decided to stay away from the treaty.E. The original purpose was sidelined in favor of political and military intervention between member states.

A government boycott is a partial restriction against the purchase and importation of certain goods and/or services from other countries. True False

By the year 1971, the United States was selling more to other countries than it bought from them; that is, the United States had a favorable balance of trade. True False

As part of the worldwide economic growth and rebuilding after World War II, countries once classified as less developed were reclassified as underdeveloped countries. True False

Quotas, boycotts, monetary barriers, and market barriers are examples of tariff barriers. True False