Exam 2: The Global Economy

A tax levied on imports is known as a ____.

Transparency refers to

On December 23,2006,one U.S.dollar was worth 0.76 euros (exchange rate 1:0.76).On December 2,2009,the U.S.dollar was worth 0.70 euros (exchange rate 1:0.70).The U.S.dollar ____ between 2006-2009.

Remittances from Mexicans working abroad,philanthropic donations to Mexican charities,and aid money donated by foreign countries would be included in the ____ part of Mexico's current account.

A country will have significant impact on the competitive advantage of an industry depending on the

Since the introduction of the Bhutanese currency,the ngultrum,in 1974,it has been fixed by the Bhutan government to the Indian rupee.Therefore,the ngultrum is an example of a ____ currency.

Mercosur is a free trade agreement between Central American countries and Mexico.

A change in the value of the U.S.dollar exchange rate from 1.1 euros to 1.2 euros is an appreciation of the U.S.dollar against the euro.

The absolute advantage of a nation refers to

Russia's Treasury bills,certificates of deposit,and foreign exchange reserves would be included in the ____ account.

Supply and demand determines the exchange rates for "free floating currencies."

Tariffs are a means to encourage imports.

When a currency falls in value,it is said to ____________________.

The main purpose of central banks is to trade currency and make large profits for the country.

Common markets

Country X and Country Y sign an agreement to drop trade barriers among themselves.But both countries agree that each country should be allowed to maintain independent trade relations with other countries.This is an example of a(n)____.

Despite complaints from the United States,the European Union continues to pay subsidies to Airbus,the European aircraft producer.This is called a(n)____.

On December 23,2006,one U.S.dollar was worth 0.76 euros (exchange rate 1:0.76).On December 23,2009,the U.S.dollar was worth 0.70 euros (exchange rate 1:0.70).In the United States,exporters who send their goods to the European Union were probably ____ on December 23,2009 because the U.S.currency had ____.

A Canadian company acquires 100 percent ownership of a Mexican company through a stock purchase.This is an example of ____ and it would be included in Mexico's ____.

The main objective behind imposing tariffs on imported goods is to