Question 1

The gravity model offers a logical explanation for the fact that

Accepted Answer

A) trade between Asia and the U.S.has grown faster than NAFTA trade. 
B) trade in services has grown faster than trade in goods. 
C) trade in manufactures has grown faster than in agricultural products. 
D) Intra-European Union trade exceeds international trade by the European Union. 
E) the U.S.trades more with Western Europe than it does with Canada. 
A) trade between Asia and the U.S.has grown faster than NAFTA trade. 
B) trade in services has grown faster than trade in goods. 
C) trade in manufactures has grown faster than in agricultural products. 
D) Intra-European Union trade exceeds international trade by the European Union. 
E) the U.S.trades more with Western Europe than it does with Canada.

Question 2

In the pre-World War I period,the U.S.exported mainly

Accepted Answer

A) manufactured goods. 
B) services. 
C) primary products including agricultural. 
D) technology intensive products. 
E) weapons. 
A) manufactured goods. 
B) services. 
C) primary products including agricultural. 
D) technology intensive products. 
E) weapons.

Question 3

Since World War II,the likelihood that any single item in the typical consumption basket of a consumer in the U.S.originated outside of the U.S.

Accepted Answer

A) remained constant. 
B) increased. 
C) decreased. 
D) fluctuated widely with no clear trend. 
E) increased slightly before dropping off. 
A) remained constant. 
B) increased. 
C) decreased. 
D) fluctuated widely with no clear trend. 
E) increased slightly before dropping off.

Question 4

The Neoclassical Heckscher-Ohlin model assumes that all producers of any industrial product has knowledge of,and may avail itself of the same production technology available to producers in any other country.Many have flagged this identical technology assumption as unrealistic.During the past half century,the relative importance of Multinational Corporations (MNCs)in world trade has steadily increased.How would this trend affect the realism of the "identical technology" assumption?

Accepted Answer

Noting that MNC plants tend to use more

Question 5

The Services sector has been steadily rising in relative importance in GDP of the United States,as well as elsewhere around the world.Since "services" have been identified as "non-tradable" (e.g. ,it is difficult to export haircuts),it may be argued that this trend will likely slow the rapid growth in international trade.Discuss.

Accepted Answer

This argument stands on questionable log

The gravity model offers a logical explanation for the fact that

In the pre-World War I period,the U.S.exported mainly

Since World War II,the likelihood that any single item in the typical consumption basket of a consumer in the U.S.originated outside of the U.S.

Introduction

Labor Productivity and Comparative Advantage: The Ricardian Model

Specific Factors and Income Distribution

Resources and Trade: the Heckscher-Ohlin Model

The Standard Trade Model

External Economies of Scale and the International Location of Production

Firms in the Global Economy: Export Decisions, Outsourcing, and Multinational Enterprises

The Instruments of Trade Policy

The Political Economy of Trade Policy

Trade Policy in Developing Countries

Controversies in Trade Policy

National Income Accounting and the Balance of Payments

Exchange Rates and the Foreign Exchange Market: An Asset Approach

Money,Interest Rates, and Exchange Rates

Price Levels and the Exchange Rate in the Long Run

Output and the Exchange Rate in the Short Run

Fixed Exchange Rates and Foreign Exchange Intervention

International Monetary Systems: An Historical Overview

Financial Globalization: Opportunity and Crisis

Optimum Currency Areas and the Euro

Developing Countries: Growth, Crisis, and Reform

Filters

Exam 2: World Trade: An Overview

The gravity model offers a logical explanation for the fact that

In the pre-World War I period,the U.S.exported mainly

Since World War II,the likelihood that any single item in the typical consumption basket of a consumer in the U.S.originated outside of the U.S.

Introduction

Labor Productivity and Comparative Advantage: The Ricardian Model

Specific Factors and Income Distribution

Resources and Trade: the Heckscher-Ohlin Model

The Standard Trade Model

External Economies of Scale and the International Location of Production

Firms in the Global Economy: Export Decisions, Outsourcing, and Multinational Enterprises

The Instruments of Trade Policy

The Political Economy of Trade Policy

Trade Policy in Developing Countries

Controversies in Trade Policy

National Income Accounting and the Balance of Payments

Exchange Rates and the Foreign Exchange Market: An Asset Approach

Money,Interest Rates, and Exchange Rates

Price Levels and the Exchange Rate in the Long Run

Output and the Exchange Rate in the Short Run

Fixed Exchange Rates and Foreign Exchange Intervention

International Monetary Systems: An Historical Overview

Financial Globalization: Opportunity and Crisis

Optimum Currency Areas and the Euro

Developing Countries: Growth, Crisis, and Reform

Filters