Question 1

Which of the following does NOT explain the extent of trade between Ireland and the U.S.?

Accepted Answer

A) large numbers of Irish- Americans 
B) Gravity Model 
C) multinational corporations 
D) historical ties 
E) cultural Linguistic ties 
A) large numbers of Irish- Americans 
B) Gravity Model 
C) multinational corporations 
D) historical ties 
E) cultural Linguistic ties B

Question 2

The two neighbors of the United States do a lot more trade with the United States than European economies of equal size.

Accepted Answer

A) This is consistent with predictions from gravity models. 
B) This relates to Belgium's trade record with the U.S. 
C) This contradicts predictions from gravity models. 
D) This is because these neighboring countries have exceptionally large GDPs. 
E) This is irrelevant to any inferences that may be drawn from gravity models. 
A) This is consistent with predictions from gravity models. 
B) This relates to Belgium's trade record with the U.S. 
C) This contradicts predictions from gravity models. 
D) This is because these neighboring countries have exceptionally large GDPs. 
E) This is irrelevant to any inferences that may be drawn from gravity models. A

Question 3

Approximately what percent of all world production of goods and services is exported to other countries?

Accepted Answer

A) 100% 
B) 50% 
C) 10% 
D) 30% 
E) 90% 
A) 100% 
B) 50% 
C) 10% 
D) 30% 
E) 90% D

Question 4

In the early 20th century,the United Kingdom exported mainly

Accepted Answer

A) services. 
B) livestock. 
C) technology intensive products. 
D) manufactured goods. 
E) primary products including agricultural. 
A) services. 
B) livestock. 
C) technology intensive products. 
D) manufactured goods. 
E) primary products including agricultural.

Question 5

Why does the gravity model work?

Accepted Answer

A) Large economies tend to avoid trading with small economies. 
B) Large economies have relatively large incomes,and hence spend more on government promotion of trade and investment. 
C) Large economies have relatively larger areas,which raises the probability that a productive activity will take place within the borders of that country. 
D) Large economies became large because they were engaged in international trade. 
E) Large economies tend to have large incomes and tend to spend more on imports. 
A) Large economies tend to avoid trading with small economies. 
B) Large economies have relatively large incomes,and hence spend more on government promotion of trade and investment. 
C) Large economies have relatively larger areas,which raises the probability that a productive activity will take place within the borders of that country. 
D) Large economies became large because they were engaged in international trade. 
E) Large economies tend to have large incomes and tend to spend more on imports.

Question 6

Since the early 1970s,world's trade as a share of world production has

Accepted Answer

A) remained constant. 
B) fluctuated widely with no clear trend. 
C) increased. 
D) increased slightly before dropping off. 
E) decreased. 
A) remained constant. 
B) fluctuated widely with no clear trend. 
C) increased. 
D) increased slightly before dropping off. 
E) decreased.

Question 7

According to the gravity model,a characteristic that tends to affect the probability of trade existing between any two countries is

Accepted Answer

A) the distance between them. 
B) the average weight/value of their traded goods. 
C) their colonial- historical ties. 
D) the number of different product varieties produced by their industries. 
E) their cultural affinity. 
A) the distance between them. 
B) the average weight/value of their traded goods. 
C) their colonial- historical ties. 
D) the number of different product varieties produced by their industries. 
E) their cultural affinity.

Question 8

In the present,most of the exports from China are

Accepted Answer

A) technology intensive products. 
B) overpriced by world market standards. 
C) manufactured goods. 
D) primary products including agricultural. 
E) services. 
A) technology intensive products. 
B) overpriced by world market standards. 
C) manufactured goods. 
D) primary products including agricultural. 
E) services.

Question 9

In general,which of the following do NOT tend to increase trade between two countries?

Accepted Answer

A) mutual membership in preferential trade agreements 
B) larger economies 
C) the existence of well controlled borders between countries 
D) linguistic and/or cultural affinity 
E) historical ties 
A) mutual membership in preferential trade agreements 
B) larger economies 
C) the existence of well controlled borders between countries 
D) linguistic and/or cultural affinity 
E) historical ties

Question 10

The gravity model explains why

Accepted Answer

A) capital rich countries export capital intensive products. 
B) countries with oil reserves tend to export oil. 
C) European countries rely most often on natural resources. 
D) intra- industry trade is relatively more important than other forms of trade between neighboring countries. 
E) trade between Sweden and Germany exceeds that between Sweden and Spain. 
A) capital rich countries export capital intensive products. 
B) countries with oil reserves tend to export oil. 
C) European countries rely most often on natural resources. 
D) intra- industry trade is relatively more important than other forms of trade between neighboring countries. 
E) trade between Sweden and Germany exceeds that between Sweden and Spain.

Question 11

In the current Post- Industrial economy,international trade in services (including banking and financial services)

Accepted Answer

A) is relatively stagnant. 
B) does not exist. 
C) is an increasingly important component of global trade. 
D) dominates world trade. 
E) far surpasses the predictions of economist Alan Blinder. 
A) is relatively stagnant. 
B) does not exist. 
C) is an increasingly important component of global trade. 
D) dominates world trade. 
E) far surpasses the predictions of economist Alan Blinder.

Question 12

The gravity model suggests that over time

Accepted Answer

A) world trade will eventually be swallowed by a black hole. 
B) trade between all countries will increase. 
C) the value of trade between two countries will be proportional to the product of the two countries' GDP. 
D) trade between neighboring countries will increase. 
E) trade between Earth and other planets will become important. 
A) world trade will eventually be swallowed by a black hole. 
B) trade between all countries will increase. 
C) the value of trade between two countries will be proportional to the product of the two countries' GDP. 
D) trade between neighboring countries will increase. 
E) trade between Earth and other planets will become important.

Question 13

In the early 20th century,the United Kingdom imported mainly

Accepted Answer

A) manufactured goods. 
B) from the United States. 
C) services. 
D) technology intensive products. 
E) primary products including agricultural. 
A) manufactured goods. 
B) from the United States. 
C) services. 
D) technology intensive products. 
E) primary products including agricultural.

Question 14

The gravity model offers a logical explanation for the fact that

Accepted Answer

A) Intra- European Union trade exceeds international trade by the European Union. 
B) trade between Asia and the U.S.has grown faster than NAFTA trade. 
C) trade in services has grown faster than trade in goods. 
D) the U.S.trades more with Western Europe than it does with Canada. 
E) trade in manufactures has grown faster than in agricultural products. 
A) Intra- European Union trade exceeds international trade by the European Union. 
B) trade between Asia and the U.S.has grown faster than NAFTA trade. 
C) trade in services has grown faster than trade in goods. 
D) the U.S.trades more with Western Europe than it does with Canada. 
E) trade in manufactures has grown faster than in agricultural products.

Question 15

We see that the Netherlands,Belgium,and Ireland trade considerably more with the United States than with many other countries.

Accepted Answer

A) This is explained by the gravity model,since these are all large countries. 
B) This is explained by the gravity model,since they do not share borders. 
C) This fails to be consistent with the gravity model,since these are small countries. 
D) This fails to be consistent with the gravity model,since these are large countries. 
E) This is explained by the gravity model,since these are all small countries. 
A) This is explained by the gravity model,since these are all large countries. 
B) This is explained by the gravity model,since they do not share borders. 
C) This fails to be consistent with the gravity model,since these are small countries. 
D) This fails to be consistent with the gravity model,since these are large countries. 
E) This is explained by the gravity model,since these are all small countries.

Which of the following does NOT explain the extent of trade between Ireland and the U.S.?

The two neighbors of the United States do a lot more trade with the United States than European economies of equal size.

Approximately what percent of all world production of goods and services is exported to other countries?

In the early 20th century,the United Kingdom exported mainly

Why does the gravity model work?

Since the early 1970s,world's trade as a share of world production has

According to the gravity model,a characteristic that tends to affect the probability of trade existing between any two countries is

In the present,most of the exports from China are

In general,which of the following do NOT tend to increase trade between two countries?

The gravity model explains why

In the current Post- Industrial economy,international trade in services (including banking and financial services)

The gravity model suggests that over time

In the early 20th century,the United Kingdom imported mainly

The gravity model offers a logical explanation for the fact that

We see that the Netherlands,Belgium,and Ireland trade considerably more with the United States than with many other countries.

Introduction

Labor Productivity and Comparative Advantage: the Ricardian Model

Specific Factors and Income Distribution

Resources and Trade: the Heckscher-Ohlin Model

The Standard Trade Model

External Economies of Scale and the International Location of Production

Firms in the Global Economy: Export Decisions,outsourcing,and Multinational Enterprises

The Instruments of Trade Policy

The Political Economy of Trade Policy

Trade Policy in Developing Countries

Controversies in Trade Policy

Filters

Exam 2: World Trade: an Overview

Which of the following does NOT explain the extent of trade between Ireland and the U.S.?

The two neighbors of the United States do a lot more trade with the United States than European economies of equal size.

Approximately what percent of all world production of goods and services is exported to other countries?

In the early 20th century,the United Kingdom exported mainly

Why does the gravity model work?

Since the early 1970s,world's trade as a share of world production has

According to the gravity model,a characteristic that tends to affect the probability of trade existing between any two countries is

In the present,most of the exports from China are

In general,which of the following do NOT tend to increase trade between two countries?

The gravity model explains why

In the current Post- Industrial economy,international trade in services (including banking and financial services)

The gravity model suggests that over time

In the early 20th century,the United Kingdom imported mainly

The gravity model offers a logical explanation for the fact that

We see that the Netherlands,Belgium,and Ireland trade considerably more with the United States than with many other countries.

Introduction

Labor Productivity and Comparative Advantage: the Ricardian Model

Specific Factors and Income Distribution

Resources and Trade: the Heckscher-Ohlin Model

The Standard Trade Model

External Economies of Scale and the International Location of Production

Firms in the Global Economy: Export Decisions,outsourcing,and Multinational Enterprises

The Instruments of Trade Policy

The Political Economy of Trade Policy

Trade Policy in Developing Countries

Controversies in Trade Policy

Filters