Exam 1: The International Economy and Globalization

Following World War II,The U.S.:

Increased foreign competition tends to increase profits of domestic import-competing companies.

Increased foreign competition tends to:

The United States exports a larger percentage of its gross domestic product than Japan,Germany,and Canada.

What are the challenges of the international trading system?

____ is the ability of a firm/industry,under free and fair market conditions,to design,produce,and market goods and services that are better and/or cheaper than those of other firms/industries.

Regarding the applicability of free trade to cigarettes,it is correct to say:

Producing goods for export produces:

International trade benefits:

In the long run,competitiveness depends on an industry's natural resources,its stock of machinery and equipment,and the skill of its workers in creating goods that people want to buy.

The movement to free international trade is most likely to generate short-term unemployment in which industries?

With globalization and import competition,U.S.prices have generally:

Multilateral trade negotiations have led to

Most of the world's population now lives in countries that are:

A main advantage of specialization results from:

Current trade rules permit countries to enact measures to protect the health and safety of their citizens as long as all goods are treated equally,the tobacco companies argue.

Free traders maintain that an open economy is advantageous in that it provides all of the following except:

International trade in goods and services is sometimes used as a substitute for all of the following except:

A sudden shift from import tariffs to free trade may induce short-term unemployment in:

Economic interdependence occurs through