Exam 1: Introduction

The United States is less dependent on trade than most other countries because

International trade theory implies that international trade is beneficial to all trading countries. However, casual observation leads to the conclusion that official obstruction of international trade flows is widespread. How might you reconcile these two facts?

It is argued that if a rich high wage country such as the United States were to expand trade with a relatively poor and low wage country such as Mexico, then U.S. industry would migrate south, and U.S. wages would fall to the level of Mexico's. What do you think about this argument?

Who sells what to whom

An improvement in a country's balance of payments means a decrease in its balance of payments deficit, or an increase in its surplus. In fact we know that a surplus in a balance of payments

Which of the following is NOT a major concern of international economic theory?

The balance of payments has become a central issue for the United States because

The distinction between international trade and international money is NOT entirely clear because

A fundamental problem in international economics is how to produce

In September 2010, the finance minister of ________ declared that the world was "in the midst of an international currency war" because of rapid appreciation in the value of the country's currency, the ________.

The benefits of international trade are derived from trade in

The GATT is

International economics can be divided into two broad sub-fields

International monetary analysis focuses on

Which of the following does NOT belong?

In 1998 an economic and financial crisis in South Korea caused it to experience

Since 1994, trade rules have been enforced by