__________ is defined as the absence of tariffs, quotas, or other governmental impediments to international

trade, allows each country to specialize in the goods it can produce cheaply and efficiently relative to other countries.

◦Since the GATT began in________ average tariffs set by industrial countries have fallen from about 40 percent to about 5 percent today. These tariff reductions helped promote the tremendous expansion of world trade after World War II and the concomitant rise in real per capita incomes among developed and developing nations alike.

In __________, the GATT became the World Trade Organization (WTO), which now has more than 140 member countries.

A _________is a group of countries that eliminate all tariffs on trade with each other but retain autonomy in determining their tariffs with nonmembers.

A _________ is a tax imposed by one country on the goods and services imported from another country

__________________________ regulate international trade between two or more nations it may cover all imports and exports, certain categories of goods, or a single category. The United States is currently engaged in some 320 trade agreements with various nations.

The World Trade Organization (WTO) is a global organization, headquartered in _________, for dealing with trade between nations.

Established in January 1995 by the Uruguay round negotiations under GATT, the WTO included 144 nations as of___________. The WTO administers trade agreements, provides a forum for trade negotiations and resolving trade disputes, monitors trade policies, and provides technical assistance and training for developing countries.

The customs union exception was designed, in part, to accommodate the formation of the European Economic Community (EC) in _______.

A ___________ is a group of countries that eliminate all tariffs on trade among themselves but maintain a common external tariff on trade with countries outside the union

In the early 19th century, English economist _____________ offered an explanation of trade in terms of international differences in labor productivity, an explanation that remains a powerful insight

It is one of the seven themes of international economics where an exchange of goods and services between countries almost always result to mutual benefit

What theme of international economics is concerned with the study of “who sells what to whom”?

This theme of international economics is concerned with the trade surpluses and trade deficit of a country.

What theme of international economics has an associated special risk like currency fluctuations?

To analyze the effects of the policies of this theme is the single most consistent mission of international economics.

What theme of international economics is relatively a new part of international economics and, for the most part, fixed by government action rather than determined by the marketplace?

What theme of international economics is mainly concerned with the trade rules implemented by different sovereign countries?

What is the term used to refer to a set of arrangements by which individuals and firms exchange money now for promises to pay in the future?

What does NAFTA stands for?

Which conflict is usually more important in determining trade policies?

Before World War I, the world’s major currencies where fixed in terms of what?

International trade also allows countries to specialize in producing narrower goods and giving them what?

What does trade alter between broad groups, such as workers and the owners of capital?.

What are the two broad subfield that divides the economics of the international economy?

It is a subfield of international economics that focuses primarily on the real transactions in the international economy.

There is a strong empirical relationship between the size of a country’s economy and what?

Which of the following determines the volume of trade between two countries?

What is one of the principal use of gravity models?

The large trade of Belgium and the Netherlands suggests what factor that plays an important role in determining the volume of trade?

United States, Canada, and Mexico are part of what trade agreement which ensures that most goods shipped among the three countries are not subject to tariffs or other barriers to international trade?

In our contemporary time, what type of goods make up the majority of share in world trade?.