International Trade and Exchange

Goods or services that a country sells to other nations

• Duty
• Tariff
• Export
• Import

Which of the following is NOT in the balance of payments

• Current account

• Financial account

• Capital account

• Savings account

When a country has the ability to produce more of a product relative to another country.

• Absolute Advantage
• Favorable Balance of Favorable Balance of Trade
• Positive Net Export
• Comparative Advantage

A tax placed on imports

• Quota
• Duty Tax
• Protectionism
• Tariff

When a nation imports more than they export, that nation has a

• Free trade agreement
• Trade surplus
• Trade deficit
• Trade free economic system

Interest rates in Japan have increased and are now higher than US interest rates. What would happen the value of the dollar?

• It would increase

• It would decrease

• It would remain the same.

The UK is leaving the European Union. This would make it harder for other countries to trade with it. What would happen the value of the British Pound?

• It would increase

• It would decrease

• It would remain the same

New Zealand goods are very expensive. Norway's goods are cheaper. What would happen the level of GDP of each country if they entered into a trade agreement?

• New Zealands increase, Norway decrease

• New Zealands decrease, Norway decrease

• New Zealands increase, Norway increase

• New Zealands decrease, Norway increase

If there is high inflation in the UAE what would happen the value of the Dirham and GDP?

• increase, increase

• increase, decrease

• decrease, increase

• decrease, decrease

The purpose of dumping is

• to gain a high market share

• to lower the wages of the employees

• to improve the quality of the good

• to get rid of unwanted products for a cheap price