Lesson 38 - unit 8

Question 1

What are some benefits of free trade?

Answer 1

1. Larger markets
2. More jobs
3. Greater economic opportunity
4. Higher standard of living
5. More goods and services available at lower prices
6. National interdependence

Question 2

What new pattern of trade did Franklin Roosevelt begin?

Answer 2

The pattern of negotiating reciprocal trade agreements with individual nations.

Question 3

What trade agreement was developed after WWII?

Answer 3

The General Agreement on Tariffs and Trade

Question 4

What trade agreement was developed after WWII?

Answer 4

The General Agreement on Tariffs and Trade.

Question 5

Of what agreement was the GATT a forerunner of?

Answer 5

The World Trade Organization.

Question 6

What is MFN or PNTR status?

Answer 6

Most Favored Nation or Permanent Normal Trade Relations. When a nation is given all of the advantages that other nations receive in trade with the U.S.

Question 7

What is fair trade?

Answer 7

An economic movement intended to help families and small companies in less-developed countries compete in the world economy.

Question 8

What are factors that increase trade?

Answer 8

1. The kinds and quantities of goods and services
2. Better communication
3. Better transportation
4. Lower transaction costs

Question 9

What does Murray Weidenbaum say is the only way to increase exports in the long run?

Answer 9

Increase imports.

Question 10

What does Murray say a trade restraint to help an industry really is?

Answer 10

An internal transfer of income and wealth to that industry from U.S. consumers.

Question 11

What four positive strategies does Weidenbaum say the United States should take?

Answer 11

1. Carrying out domestic economic policies that expand production and incomes while holding down inflation.
2. Achieve greater stability and balance in macroeconomic policies.
3. Limit governmental trade adjustment assistance.
4. Acknowledge the positive role of multinational corporations in the world economy.