Global Economics examples

Question 1

quota

Answer 1

the United States limits the number of Chinese car imports to 3 million per year

Question 2

tariff

Answer 2

the US has 15% tariff on Chinese solar panels

Question 3

production subsidies

Answer 3

the US corn subsidies that contribute to the US producing over 30% of the world’s corn supply

Question 4

export subsidies

Answer 4

EU was spending 10 bn euros on arricultural export subsidies in the 1990s

Question 5

managed exchange rate

Answer 5

Chinese yuan, British pound

Question 6

fixed exchange rate

Answer 6

Danish krone (pegged to euro)

Question 7

free trade agreement

Answer 7

Australia-Korea FTA, NAFTA

Question 8

monetary union

Answer 8

European Monetary Union

Question 9

custom unions

Answer 9

CEFTA, SACU

Question 10

common market

Answer 10

European Economic Community (EEC)

Question 11

current account deficit

Answer 11

Pakistan: 2014-2017, overvalued rupee

Question 12

current account surplus

Answer 12

China: had been buying large amounts of US bonds in 2000s thanks to this surplus

Question 13

floating exchange rate

Answer 13

New Zealand dollar

Question 14

interventionist policy

Answer 14

Uganda invested heavily into education and its accessibility which resulted in significantly larger improvements in economic development than its neighbouring countries.

Question 15

economic growth vs. economic development

Answer 15

Qatar is the country with the highest GDP in the world but it is does not score that highly in the quality of life. On the other hand, Norway is well known for its quality of life despite not having the largest GDP per capita value.