Quiz 2

Question 1

All commercial transactions, both private and public between nations of the world.

Answer 1

International Business

Question 2

All commercial transactions, both private and public between nations of the world.

Answer 2

International Business

Question 3

The two-way flow of exports and imports of goods (merchandise trade) and services (service trade )

Answer 3

Trade

Question 4

Inflows of capital from abroad for investing in domestic plant and equipment for the production of goods and or services and for buying domestics firms

Answer 4

Foreign Direct investment

Question 5

Benefits of International Trade

Answer 5

• A greater amount of choice in the availability of goods and services
• Completion results in lower prices for goods and services consumed
• Increased quality of life and higher living standards

Question 6

The premise that a nation could only gain from external trading if it had a trade surplus

Answer 6

Mercantilism

Question 7

Free trade encourages countries to specialize in the production of those goods and services that they most efficiency produce

Answer 7

Specialization

Question 8

Nations primarily export goods and services that intensely use their abundant factors of production

Answer 8

Factor Endowments

Question 9

Endowments used to produced goods and services:

Answer 9

Land, labor, capital, technology

Question 10

When the value of exports exceed the value of imports; the opposite of a trade deficit

Answer 10

Trade surplus

Question 11

Customs duties on imports that are collected by a designated government agency responsible for regulating imports

Answer 11

Tariffs

Question 12

Customs duties on imports that are collected by a designated government agency responsible for regulating imports

Answer 12

Tariffs

Question 13

An import tax that assigns a fixed dollar amount per physical unit

Answer 13

Specific tariff

Question 14

A tax on imports leveled as a constant percentage of the monetary value of one unit of the imported good

Answer 14

Ad Valorem Tariff

Question 15

An important tariff established by a nation for goods of certain countries and not applied to the same goods of other countries

Answer 15

Preferential Duties

Question 16

An important tariff established by a nation for goods of certain countries and not applied to the same goods of other countries

Answer 16

Preferential Duties

Question 17

An agreement where a large number of developed countries permit duty – free imports of a selected list of products that originate from specific countries

Answer 17

Generalized System of Preferences

Question 18

International Trade Organizations

Answer 18

• International Monetary Fund (IMF)
• World bank
  -General agreement on tariffs and trade (GATT)
• World Trade Organization (WTO)

Question 19

-can produce two or more good and service

Answer 19

Comparative advantage

Question 20

Has one better advantage of producing good and service example of is

Answer 20

Abaolute advantage

Question 21

predicts the pattern of trade between countries based on the characteristics of the countries.

Answer 21

O-h theory

Question 22

When factors are allowed to move freely among trading nations,efficiency increases, which leads to superior allocation of production of goods and services among countries.

Answer 22

Factor price equalization theory