Exam 2: Trade and Investment

Historically a domestic issue for any given country,policies for ________ have recently been taken to the international realm.

__________ incentives provide specific tax measures to attract foreign direct investment.

________ is the supreme right of nations to determine national policies.

The term ________ refers to legal restrictions on import quantity of particular goods,imposed by governments as barriers to trade.

Used to manage or distort trade rules,________ agreements result in self-imposed restrictions not covered by the WTO.

___________ tariffs are those maximum duties that a country has agreed to in WTO negotiations.

In 2009,the United States imposed a tariff on Roquefort cheese from France as well as other European products in retaliation for continued restrictions on U.S.hormone-fed beef. This tariff can best be described as:

Because capital inflows are often accompanied by capital outflows,the economic benefits of foreign direct investment can be controversial.

In the United States,domestic employees working for subsidiaries of foreign firms receive on average a 32 percent higher salary than do their counterparts employed by domestic firms. This example illustrates which positive impact of foreign direct investment?

The Committee on Foreign Investments in the United States is charged with enhancing foreign trade and making sure that all major foreign investment deals go through.

_________ is the migration of professional people from one country to another,usually for the purpose of improving their incomes or living conditions.

_____________ tariffs are a tax on an imported good or service intended to punish a trading partner.

Bilateral negotiations are trade negotiations among more than two parties.

The WTO supplanted GATT in 1995 to administer international trade and investment accords.

The United States has run up a foreign trade deficit of hundreds of billions of dollars. Yet,nations are willing to trade with the U.S.through transfer of gold,foreign assets,and IOUs. This example demonstrates that:

________ is the area of public policy concerned with relationships with other countries.

An increase in ___________ has contributed to a sharpening of the conflict between industrialized and developing nations

In the 1960s and 1970s,it was hoped that the developmental gap between industrialized nations and developing nations would gradually be closed. Today we see that:

_________ measures are implemented primarily by nations that have accumulated and maintained large balance-of-trade surpluses.

__________ agreements result in self-imposed restrictions not covered by WTO rules,and are used to manage or distort trade flows.