Exam 2: The Global Economy

Which of the following is not a principal part of the balance of payments statement?

The Albanian lek,Costa Rican colon,and Malawi kwacha are currencies that attract little global demand.These are examples of ____ currencies.

Currency fluctuations can cause marketers to leave a foreign market.The European Union is an example of a monetary union.

A ratio that measures the value of one currency in terms of another currency is called a(n)____________________.

____________________ are physical limits on the amount of goods that can be imported into a country.

The average Vietnamese worker can produce either 200 machines or 800 tons of tomatoes each year,whereas the average German worker can produce either 500 machines or 1,000 tons of tomatoes.Germany has a(n)____ advantage in both machines and tomatoes.

Comparative advantage illustrates that relative rather than absolute differences in productivity can form a determining basis for international trade.

Turkey signed an agreement with the European Union (EU).In this agreement,Turkey and the EU agreed to drop trade barriers among themselves.They also agreed that Turkey and the EU would employ the same trade barriers to countries outside of Turkey and the EU.This is an example of a(n)____.

Which is constitutionally prohibited in the United States?

Most favored nation status was outlawed under GATT.

In the Japanese skincare industry,there are several strong local competitors,like Shiseido.When it comes to skincare products,Japanese consumers are some of the most sophisticated,knowledgeable,and demanding.There are cutting-edge research and development facilities and supplier companies geared toward the skincare industry in Japan.Japan has a(n)____ advantage in skincare products.

The focus of IMF activities has shifted from exchange rate relations among industrialized countries to ____.

The General Agreement on Tariffs and Trade was the precursor to

A shipment of Dell laptop computers is sent from the United States to a Brazilian airport and is sitting at customs.In order to bring the laptops into the country,Dell representatives must pay the Brazilian government a tax.This is called a(n)____.

A stock purchase in a foreign company that entailed substantial control over that foreign company would be designated a

Quotas are

Exporters often are happy when their home currency appreciates against the currency of the market they sell to because buyers in that market can afford to buy more of their exports.

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,importers who receive goods from the European Union were probably ____ on December 23,2009 because the U.S.currency had ____.

The average worker in Ghana can produce either 500 tons of rice or 4,000 tons of cocoa in one year.Over the same time period,the average South Korean worker can produce either 3,000 tons of rice or 150 tons of cocoa.In terms of cocoa production,Ghana has a(n)____ advantage relative to South Korea

Comparative advantage measures a product's cost of production in monetary terms.