Specialization, Trade, Barriers to Trade, and Currencies Major

1- India and South Korea both have growing technological economies. Japan already has a highly developed technological economy. What can India and South Korea do to BEST protect their growing markets?

• Place an embargo on Japan for 5 years.
• Seek out foreign employees who already have experience in technology.
• Hire advertising firms to promote Indian or South Korean technology as superior to Japanese technology.
• Impose a tariff on goods imported from Japan to make domestic technology more affordable than Japanese technology.

3- Parts of India have abundant farmland, but little industry. How would voluntary trade benefit India to meet the economic needs of the people?

• India should adopt a traditional economy.
• India should invest in capital goods and industrialize.
• India should invest in human capital and train engineers.
• India should specialize in agriculture and trade for industrial goods.

4- What is the MOST significant reason why buyers and sellers in Southern and Eastern Asia require a system for exchanging currencies between nations?

• Most of these nations do not share the same language and a system would allow money to be exchanged with less confusion.
• Many of these nations use different economic systems and consider different items valuable enough to use as currency as a result.
• Many factors contribute to the economies of these nations, which means that the value of two currencies relative to each other may change quickly.
• Most of these nations belong to the United Nations and must use its system for establishing the value of every currency compared to other currencies.

6- China trades with Japan, South Korea, and North Korea. Japan trades with China and South Korea. South Korea trades with China and Japan. North Korea trades with China. Which use of trade barriers has the potential to benefit China?

• a tariff on goods from North Korea to encourage the Chinese people to buy goods from China
• a tariff on goods from South Korea to encourage the Chinese people to buy goods from North Korea
• an embargo against North Korea and South Korea to increase trade with the wealthier nation of Japan
• a quota on goods from North Korea, South Korea, and Japan to encourage domestic production in China

In 1989, the European Union stopped weapons trade with China. This action was taken as a result of China’s violent reaction to its citizens during a protest in Beijing. The European Union hoped this refusal to trade would encourage China’s government to allow its citizens the right to peaceful protest. What economic trade action was taken against China?

• blockade
• embargo
• quota
• tariff

North Korea recently test-fired a missile into the Sea of Japan. What would be the MOST effective measure for Japan to take to express its disapproval?

• create an embargo and refuse to export goods to North Korea
• have the emperor give a formal speech condemning the missiles
• impose a tariff on all North Korean products imported into Japan
• impose a quota on how many Japanese goods are exported to North Korea

China is the largest producer of fireworks. India is the largest producer of saltpeter (a mineral used to make fireworks). China has two options: 1 - Specialize in the making of fireworks and trade goods with India for the saltpeter needed to make them. 2 - Make fireworks and use the country’s limited minerals to make them. Which answer BEST explains why China should choose the first option?

• India can collect minerals cheaper than China.
• India can sell more of its minerals to China.
• China can use its natural resources.
• China can produce more fireworks.

A new tax is added to pharmaceutical imports from the United Kingdom.

• tariff

• quota

• embargo

Spain restricts all imports of automobiles from Germany

• tariff

• quota

• embargo

France imposes a limit on Avocado imports from Mexico.

• tariff

• quota

• embargo