Exam 14: International Trade

Suppose Canada could produce 4 tonnes of potatoes or 2 tonnes of wheat per worker per year,while Ireland could produce 3 tonnes of potatoes or 2 tonnes of wheat per worker per year.What country has the comparative advantage in producing wheat and the absolute advantage in producing potatoes?

What impact would reducing existing tariffs on tomatoes have?

What trade agreement allows for the free flow of labour and capital between member countries?

What will likely be the effect of an import quota or tariff on French wine that raises wine prices?

Relative to a no-international-trade initial situation,if Canada exported wine,what would happen to the Canadian domestic price and output of wine?

What is a major difference between a tariff and a quota?

In order for mutually beneficial trade to occur,what level must the exchange rate between the goods involved be set at?

If two countries are each producing two goods and each country begins to specialize in the good in which it has a comparative advantage,what will happen to total (world)output?

Which of the following restricts the volume of international trade?

Which of the following is one reason why nations trade?

What impact would a new Canadian tariff on imported steel likely have?

The United States has committed itself to creating a free trade zone between the United States,Canada,and Mexico.Why might this be important? Relative to imports and exports to other nations,what is the size of Canada and Mexico's trade relationships with the United States?

According to international trade theory,which of the following actions should a country take?

Suppose Canada could produce 4 tonnes of potatoes or 2 tonnes of wheat per worker per year,while Ireland could produce 3 tonnes of potatoes or 2 tonnes of wheat per worker per year.What country has the comparative advantage and the absolute advantage in producing potatoes?

Which of the following statements about comparative advantage is the most accurate?

Table 14-3 Karl can produce either 10 tonnes of oranges or 5 tonnes of apples in a year, while Adam can produce either 5 tonnes of oranges or 10 tonnes of apples. -Refer to Table 14-3.Which of the following statements about trade is the most accurate?

A tariff on a good increases the domestic price of the good,increases domestic production of the good,reduces the amount of the good sold,and decreases imports of the good.

Suppose that Iceland can produce 40 units of food per person per year or 16 units of clothing per person per year,but Lavaland can produce 16 units of food per person per year or 8 units of clothing per person per year.Which of the following statements is the most accurate?

Major Canadian exporters would be likely to oppose the sort of protectionist policies favoured by domestic producers that compete with imports.

Table 14-2 Alpha can produce either 18 oranges or 9 apples an hour, while Omega can produce either 16 oranges or 4 apples an hour. -Refer to Table 14-2.Which of the following statements about Alpha and Omega is the most accurate?