The new chairman of the National Council of Economic Advisers believe that there is a great risk imposed by US trade deficits. Which of the following recommendations might the chairman make to reduce the trade deficit? 

• Increase the exchange value of the dollar
• Decrease the tariffs and quotas on foreign products
• Increase interest rates
• Devalue the dollar

Which of the following is most likely to support Free Trade?

• Coca-Cola Corporation
• The United Steelworkers of America
• The Anti-Globalization Coalition
• US Electronic Producers

Viktor Petrovicn is a Russian businessman who does a great deal of business in Serbia.  Currently, one Russian ruble (Currency) will buy 2.4 Serbian dinars (Currency). Viktor is attempting to decide whether to buy a new suit of cloths in Moscow (Rubles) or Belgrade (Serbia) If the exchange rate just changed to one ruble per 2.75 dinars, where should he buy the suit, and why?  

• In Serbia because the ruble has appreciated
• IN Russia because the ruble has depreciated
• In Serbia because the Ruble has deprciated
• In Russia because the ruble has appreciated

To say the net exports are negative is the same as saying that

• There is a capital account deficit
• There is a budget deficit
• The exchange rate has depreciated
• There is current account deficit

The united states and Canada have been experiencing a conflict over US restrictions on imported softwood lumber.  Which of the following groups should be most likely to support the US restrictions? 

• Canadian lumber firms
• US new home buyers
• US lumber importers
• US Lumber Firms

Many in the US government are concerned about the depreciation of the US dollar. Such individuals would like to increase the value of the dollar.  Which of the following presents the Best argument for or against whether the value of the dollar should be increased.

• Yes, Boosting the value of the dollar will increase US Exports
• Yes, Boosting the dollar will decrease US Imports
• NO, Boosting the dollar will anger foreign consumers and start a trade war
• No, Boosting the dollar will increase US imports and decrease US exports

Japan claims that the snow in Japan is different from that experienced elsewhere. Because of this, the country of Japan has produced laws which prevent skis from being imported in the country unless they meet certain specifications. Which of the following terms might describe this type of law?

• Tariff
• Quota
• Standard-based barrier
• non-trade related restriction

Under which of the following circumstances might a country devalue its currency?

• The country is runnuing high trade surplusses
• The country is running high current account surplusses
• The country is running high budget deficits
• There are few barriers to entering the market

Japan and South Korea make cars and TVs. The amount of each item that each country can make in one hour can be seen in the following table. Which of the strategies listed below would create a situation in which there more of both products?
                           TVs     Cars
South Korea       100      5    
Japan                  200      100

• South Korea makes all the TV sets, and Japan make all the cars
• South Korea makes all the Cars, and Japan Makes all the TV sets
• South Korea, Makes all TV sets, and Japan gives up fifty TV sets in favor of twenty-five cars
• Japan makes all of the cars, and South Korea shifts half its car production to TVs

Tony is about to travel to Denmark on business. While he is there, he hopes to see some of the sites and dine at some fine restaurants. In order to know ho much money he should budget, Tony needs to know how many Danish krones his US dollars are worth. Tony needs to be aware of 

• The exchange rate
• The current embargoes
• International tariffs
• Wheter or not the US dollar currently enjoyus a comparative advantage in trade