IBT Q4

A risk that influences a large number of assets exemplified by political events.

• Specific

• Systematic

• Unsystematic

• Generic

The rationale for a market economy is increased efficiency through ___________ and specialization of factors of production.

• Competition

• Specialization

• Distribution

• Contribution

This is a government-imposed restraint on the flow of international goods or services.

• Free trade

• Trade barriers

• Economic integration

• Trade manifesto

It has established goals for improving education, reducing child mortality, and achieving other indicators of economic development and improved standards of living through loans, policy advice, and technical assistance.

• World Trade Organization

• World Bank

• International Monetary Fund

• General Agreement on Tariffs and Trade

It is an agreement among nations to reduce or eliminate trade barriers and agree on fiscal policies.

• Economic policies

• Economic contribution

• Economic integration

• Economic distribution

This was was designed to provide an international forum for encouraging free trade between member states by regulating and reducing tariffs on traded goods and by providing a common mechanism for resolving trade disputes.

• International Monetary Fund

• General Agreement on Tariffs and Trade

• World Trade Organization

• World Bank

This was established in order to manage the Bretton Woods system of fixed exchange rates by providing finance to temporary balance of payments deficits.

• World Bank

• World Trade Organization

• General Agreement on Tariffs and Trade

• International Monetary Fund

Members of economic unions typically are required to adhere to rules on trade, monetary policy, and fiscal policies established by an unelected external policymaking body.

• Erosion of national sovereignty.

• Diversion of trade.

• Political cooperation.

• Trade benefits.

The following are advantages of economic integration, except;

• Trade benefits.

• Diversion of trade

• Employment

• Political cooperation

This exists when countries within a geographical region agree to reduce or eliminate tariff barriers on selected goods imported from other members of the area. This is often the first small step towards the creation of a trading bloc.

• Free Trade Area

• Preferential Trade Area

• Customs Union

• Common Market