International Trade Quiz

Foreign-produced goods and services that are sold domestically are called

• imports

• exports

• net imports

• net exports

Net exports of a country are the value of

• goods and services imported minus the value of goods and services exported.

• goods and services exported minus the value of goods and services imported.

• goods exported minus the value of goods imported.

• goods imported minus the value of goods exported.

If U.S. imports total $100 billion and U.S. exports total $150 billion, which of the following is correct?

• The U.S. has a trade surplus of $100 billion

• The U.S. has a trade surplus of $50 billion

• The U.S. has a trade deficit of $100 billion

• The U.S. has a trade deficit of $50 billion

A firm in China sells jackets to a U.S. department store chain. Other things the same, these sales

• increase U.S. and Chinese net exports.

• decreases U.S. and Chinese net exports.

• increase U.S. net exports and decrease Chinese net exports.

• decrease U.S. net exports and increase Chinese net exports.

Mike, a U.S. citizen, buys $1,000 worth of cheese from France. His action alone

• increases U.S. imports by $1,000 and increases U.S. net exports by $1,000

• increases U.S. imports by $1,000 and decreases U.S. net exports by $1,000

• increases U.S. exports by $1,000 and increases U.S. net exports by $1,000

• increases U.S. exports by $1,000 and decreases U.S. net exports by $1,000

Which of the following would be U.S. foreign direct investment?

• Your U.S. based mutual fund buys stock in Eastern European companies.

• A U.S. citizen opens and operates a law firm in Norway.

• A Swiss bank buys a U.S. government bond.

• A German tractor factory opens a plant in Waterloo, Iowa.

Which of the following is an example of U.S. foreign portfolio investment?

• Albert, a German citizen, buys stock in a U.S. computer company.

• Larry, a citizen of Ireland, opens a fish and chips restaurant in the United States.

• Ruth, a U.S. citizen, buys bonds issued by a German corporation.

• Dustin, a U.S. citizen, opens a country-western tavern in New Zealand.

John, a U.S. citizen, opens up a Sports bar in Tokyo. This counts as U.S.

• exports.

• imports.

• foreign portfolio investment.

• foreign direct investment.

Sue, a U.S. citizen, buys stock in an Italian automobile corporation. Her purchase counts as

• investment for Sue and U.S. foreign direct investment.

• investment for Sue and U.S. foreign portfolio investment.

• saving for Sue and U.S. foreign direct investment.

• saving for Sue and U.S. foreign portfolio investment.

Bob, a Greek citizen, opens a restaurant in Chicago. His expenditures

• increase U.S. net capital outflow and have no affect on Greek net capital outflow.

• increase U.S. net capital outflow and increase Greek net capital outflow.

• increase U.S. net capital outflow, but decrease Greek net capital outflow.

• decrease U.S. net capital outflow, but increase Greek net capital outflow.