Chapter 6-8

Question 1

The production process has also become much more fragmented due to vertical

Answer 1

Specialization and outsourcing

Question 2

Changes In where production takes place are frequently tied to changes in patterns of

Answer 2

Foreign direct investment

Question 3

Demonstrated the free trade increased efficiency and had the potential to make everyone better off

Answer 3

Law of comparative advantage

Question 4

States can intentionally create comparative advantage is in the production of new goods and services simply by adopting… such as provision of cheap loans and export subsidies to domestic producers

Answer 4

Strategic trade policies

Question 5

The principles of… treatment required dad important good be treated the same as equivalent domestically produced goods and that improves from one nation could not be given preference over those fun another

Answer 5

National Trippin and most favored nation

Question 6

Free trade was slowly replaced as the central principle by the notion of

Answer 6

Fair trade

Question 7

Liberalized trade in such things as banking in Insurance, transport and telecommunications services by applying the principles of national treatment and most favorite nation to them

Answer 7

General agreement on trade in services

Question 8

Required countries to maintain a minimum standards for protection of patents,copy rights and trademarks and to effectively enforce those standards

Answer 8

Trade related aspects of intellectual property rights

Question 9

The WTO uses…that rule on trade disputes giving the WTO an enforcement mechanism that the GATT do not have

Answer 9

Dispute settlement panels

Question 10

NAFTA and Asia Pacific economic cooperation belongs to

Answer 10

Regional trade agreements

Question 11

The WTO members’current mixture of economic liberal, mercantilist and sometime structuralist trade practices is best described as

Answer 11

Managed Trade system

Question 12

Affect the value of everything a nation buys or sells on international markets

Answer 12

Currency exchange rates

Question 13

Betting that the value of a currency or market price for a certain items or service will go up and earn the owner a Profit when it is sold

Answer 13

Speculation

Question 14

Foreign investment in stocks and bonds not regulated by the state

Answer 14

Hot Money

Question 15

A tightly integrated international order that existed until the end of World War One

Answer 15

Gold standard

Question 16

Created by the United States and its allies before the end of World War II and managed by the IMF

Answer 16

Fix exchange rate system

Question 17

Limits on how much money could move in and out of the country

Answer 17

Capital controls

Question 18

Allowed individual nationstates to continue regulating domestic economic activities within their own geographical borders

Answer 18

Keynesian Compromise

Question 19

Registers and accounting of all the international monetary transactions between the residents Created by the United States and its allies before the end of World War II and managed by the IMF of one nation and those of other nations in a given year

Answer 19

Balance of payments

Question 20

Income states generate for international transactions especially oil exports that can be used to purchase for assets or to pay off foreign debt incurred in the past

Answer 20

Sovereign wealth fund

Question 21

First the ability to respond to domestic political force often referred to as monetary autonomy. Second international capital mobility necessary for efficient international finance and third stable exchange rate desirable for smooth international trade and investment

Answer 21

Mundell Trilemma

Question 22

A series of actions to which the borrowing government have to agree before receiving a loan

Answer 22

Structural adjustment policy’s

Question 23

Currency devaluations ,price stability, fiscal austerity, tariff liberalization, higher interest rate, sound social programs

Answer 23

Conditionality

Question 24

A system in which the government gave some banks favorable treatment in return for bribes or loans from the banks

Answer 24

Crony capitalism

Question 25

Which is essentially a confrontation between a central banks which pledges to maintain its countries exchange rate at a certain level, and international currency speculators, who are willing to wager that the central bank is not fully committed to its exchange rate goal

Answer 25

Speculative attack

Question 26

Loans made to risky you borrowers with weak credit scores who often allowed to make interest only repayments early in the loan circle

Answer 26

Subprime mortgage loans

Question 27

Contracts that give banks in Insurance against default by borrowers and and that allow investors to bet on the possibility that companies would default on their loans

Answer 27

Credit default swap

Question 28

Which prohibits banks from owning hedge funds and engaging in such a risky trading

Answer 28

Volcker rule

Question 29

A collection of credit intermediaries such as hedge funds, private equity groups and money market funds that use exotic instruments like derivatives and securitization to borrow and invest trillions of dollars

Answer 29

Shadow banking system