NCEA L2Econ - Trade

The relocation of parts of a business from one country to another.

• Outsourcing

• Insourcing

• Offshoring

• Inshoring

The purchase of goods and/or services from another country.

• domestic trade

• imports

• exports

• outsourcing

Factor endowments are only the natural resources at a coutnry's disposal

• True

• False

The argument that certian industries are vital to a country and therefore should be protected.

• infant industry

• strategic (essential) industry

• employment

• sunrise industry

A tax on imported goods.

• quota

• embargo

• subsidy

• tariff

When $NZ1 = $A0.80 changes to $NZ1 = $0.84, the NZ dollar has

• appreciated

• depreciated

• stayed the same

NZ's exchange rate system

• Fixed

• Floating

• Managed float

• Dirty float

An increase in the demand for NZ goods (by foreign customers) will increase the demand for the NZD and therefore depreciate the NZD

• True

• False

An increase in imports into NZ will increase the supply of the NZD on the FOREX and therefore decrease the value of the NZD.

• True

• False

An appreciation of the NZD is good for exporters, but bad for importers.

• True

• False