International Economics Questions

In 1999, the U.S. announced trade sanctions worth $116.8 million, targeting goods from France, Germany, Italy and Denmark. The sanctions were in retaliation for a ban on U.S. hormone-treated beef by which organization?(B)

I. Two countries produce the same goods for the same opportinity costII. Two countries produce different goods for different opportinity costsIII. Two countries are isolated by geography and politicsIV. Two countries have the same identical markets What fact or facts support a situation where trade is advantageous?(A)

Decreased tariffs between the nations of U.S., Mexico, and CanadaAll three Countries experienced real wage increasesIncreased trade between the U.S., Mexico and CanadaCreated more jobs for all three countries What is this list describing?(B)

According to the chart, the reason for the increase in trade between the US and Mexico was the start of what program?(B)

United States Combating Use of Standards as Trade Barriersby Benjamin H. Wu, accessed from usinfo.state.gov/xarchivesSince standards and technical regulations affect over 80 percent of global commodity trade, domestic source restrictions by foreign governments, in the form of standards as trade barriers, are a concern and have prompted the Department of Commerce to take recent action.The U.S. Department of Commerce, along with the Department of State and Office of the U.S. Trade Representative, have been working hard to ensure that U.S. software companies continue to have access to Chinese government customers. We will continue to work vigorously to achieve this goal. In promoting free trade, the author seems to be supporting(A)

Established in 1967 in Thailand with more than 500 million members, one of the largest regional markets in the world is(A)

A Weak Dollar by The Columbus Dispatch, September 7, 1999If the price of buying a car starts rising in the United States, consumers may need to look no further than the dollar's recent slide against major foreign currencies.On the other hand, economically depressed Midwestern farmers may find it easier to sell surplus grain overseas if a weak dollar makes it cheaper for foreigners to buy U.S. goods.The dollar spent much of last week on the skids, flirting with its lowest level of the year against the Japanese yen...It also has lost ground to the euro. The passage MOST LIKELY relates to(B)

Free trade increases sales and profits for U.S. businesses, thus strenghtening the economy. Free trade creates U.S. middle-class jobs over the longterm.Free trade is an opportunity for the U.S. to provide financial help to some of the world's poorest countries. Who would be MOST critical of these statements about Free Trade Agreements?(C)

We will create a stable, prosperous and highly competitive ASEAN Region in which there is a free flow of goods, services and capital, equitable economic development and reduced poverty.-ASEAN Vision 2020, Association of Southeast Asian Nations, 1997 What MIGHT be a solution to unequal development applied by ASEAN, according to Vision 2020?(A)

Foreign Exchange Marketby Business & Economics Research Advisor, from the Library of CongressIn 1971, U.S. dollars were no longer exchanged for gold; and in 1973, the floating exchange rate system that governs the FX market today was put into place. Now, all currencies are valued by the market forces of supply and demand. Since the abandonment of the gold standard, the FX market has become an important part of international economics. With the advent of floating exchange rates, the foreign exchange market has become unregulated. No institution sets rules for trading, and it is not under the supervision of any international organization. When necessary, governments and central banks often work together to restore stability to the FX market. Foreign exchange and international trade are closely connected. Together, they affect the economic situation of people throughout the world. Currently, how are foreign exchange rates established?(A)

In 1987, the United Nations General Assembly passed a resolution that prohibited countries from buying oil from South Africa in an effort to persuade the nation to end the racist policies of apartheid. This is an example of a(n)(B)

In 2002, Canada, Mexico, and Japan were the largest trading partners of the United States. The respective order is MOST LIKELY due to(C)

Excerpt from A Petition, published in 1845 by Frederic Bastiat'From the Manufacturers of Candles, Tapers, Lanterns, Candlesticks, Street Lamps,.... To the Honorable Members of the Chamber of Deputies.... You are on the right track. You reject abstract theories and have little regard for abundance and low prices. You concern yourselves mainly with the fate of the producer. You wish to free him from foreign competition, that is, to reserve the domestic market for domestic industry...." Which quote BEST represents the idea of trade barriers?(C)

Travis takes two trips to Ecuador. On his first trip, he finds that one US dollar is worth 25,000 Ecuadorian Sucre. On his return trip, he finds that the dollar is now worth 26,000 Ecuadorian Sucre. What is a LIKELY result of this change in exchange rates?(A)

I. Two countries produce the same goods for the same opportunity costII. Two countries produce different goods for different opportunity costsIII. Two countries are isolated by geography and politicsIV. Two countries have the same identical markets What fact or facts support a situation where trade is disadvantageous?(D)

Foreign Exchange RatesCounty / Currency Foreign Currency in U.S. Dollars U.S. Dollars in Foreign CurrencyUK / Pound 2.0292 .4928Japan / Yen .0084 118.9599India / Rupee .0248 40.3950Canada / Dollar .9394 1.0645 Micah is an exchange student from the U.S. living in Japan. He wants to buy a new-release movie for 2,000 Japanese yen. When he calls home, he discovers the movie sells for $25. Micah decides to(B)

Eliminating tariffs and import duties will benefit producers and consumers in all nations. This sounds MOST like an argument for(A)

Kris is going to London, England, as an exchange student. To help figure out how much the U.S. dollar is worth compared to the British pound, Kris will keep track of the exchange rate. Which information source would be the BEST place to look for current exchange rate information?(B)

Assume that the supply of loanable funds increases in Country X. The international value of Country X's currency and Country X's exports will most likely change in which of the following ways?

The exchange rate is 1.2 euros per United States dollar. If a restaurant meal costs 30 euros in Paris, France, what is its dollar cost to a United States tourist?