Exam 21: International Trade and Finance

An increase in the value of the dollar in international exchange rate markets will cause the relative price of U.S. produced goods to foreigners to rise, the relative price of foreign produced goods to Americans to fall, causing U.S. exports to fall and U.S. imports to rise.

Which of the following would be expected if the tariff on foreign-produced automobiles were increased?

When Brazil can generate a product using fewer labor hours and resources than the United States, an economist would say that Brazil had:

A basic problem with the infant-industry argument is that:

If a nation follows a policy of being self-sufficient, its:

If the United States were to adopt a policy of free trade with European countries and Japan, this policy would:

Suppose a U.S.-made machine costs $500 and the exchange rate is 100 yen = $1. Now the exchange rate changes to 90 yen = $1. Then the:

Exhibit 21-3  Potatoes and wheat output (tons per day) In Exhibit 21-3, the United States has a comparative advantage in producing:

Tariff rates on products imported into the United States:

An exchange rate is the number of units of:

An increase in a nation's trade deficit occurs when that nation's exports rise and/or its imports fall.