WorksheetsKTQT PART 3
Total questions: 56
Worksheet time: 31mins
The form of international price discrimination (dumping) normally associated with economic recession or excess inventories in the exporting nation is known as
predatory dumping (bán phá giá chớp nhoáng: phá giá tạm thời nhằm loại bỏ đối thủ cạnh tranh)
sporadic dumping (bán phá giá k thường xuyên: xảy ra khi dư cung hoặc muốn thâm nhập vào thị trường mới)
persistent dumping (bán phá giá dai dẳng: định giá bán hàng xuất khẩu thấp hơn giá nội địa nhằm tối đa hóa lợi nhuận)
year-end dumping
The form of dumping that represents the greatest potential net welfare loss the for importing
predatory dumping
sporadic dumping
persistent dumping
year-end dumping
occurs when a firm disposes on foreign markets a temporary increase in inventories caused by unforeseen changes in supply and demand conditions in the home economy
sporadic dumping
predatory dumping
persistent dumping
foreign dumping
According to the cost-based definition of dumping, dumping occurs when a firm sells a product abroad at a price that is less than
average total cost
average variable cost
average fixed cost
marginal cost
What type of trade barrier was used to protect U.S. auto firms from foreign competition during 1981-1984?
export quotas imposed by the Japanese government
export tariffs imposed by the Japanese government
import quotas imposed by the U.S. government
domestic subsidies granted by the U.S. government
A allows a specified number of goods to be imported each year, and it not specifies from where the product is shipped and who is permitted to import
import quota
export quota
selective quota
global quota
Buy national policies
result in government purchase policies favoring domestic over foreign producers
result in government purchase policies favoring foreign over domestic producers
attempt to restrict the number of tourists leaving a nation
are intended to publicize the advantages of the most efficient domestic companies
Which company in the United States would likely be most concerned about Brazil's dumping of steel in the U.S. market?
General Motors, the manufacturer of automobiles
Tennessee Mining Co., an iron-ore mining company
Caterpillar Corp., the producer of earth-moving equipment
Sneva Construction Co., the builder of skyscrapers
The market power effect of an international joint venture can lead to welfare losses for the domestic economy unless offset by cost reductions. Which type of cost reduction would not lead to offsetting welfare gains for the overall economy:
R&D generating welfare improved technology
development of more productive machinery
new work rules promoting worker efficiency
lower wages extracted from workers
All of the following are potential advantages of an international joint venture except:
sharing research and development costs among corporations
forestalling protectionism against imports
establishing work rules promoting higher labor productivity
operating at diseconomy-of-scale output levels
The migration of employable workers from low-paying nations to high-paying nations tends to decrease
total wage income in the world
wage disparities
business or capitalist income in the world
the productivity of labor
Multinational corporations:
increase the transfer of technology between nations
make it harder to nations to foster activities of comparative advantage
always enjoy political harmony in nations where their subsidiaries operate
require governmental subsidies in order to conduct worldwide operations
Firms undertake multinational operations in order to:
hire low-income workers
manufacture in nations they have difficulty exporting to
obtain necessary factor inputs
all of the above
Multinational corporations face problems since they:
cannot benefit from the advantage of comparative advantage
may raise political problems in countries where their subsidiaries operate
can only invest at home, but not overseas
can only invest overseas, but not at home
American labor unions have maintained that U.S. multinational corporations have been:
exporting American jobs by investing overseas
exporting American jobs by keeping investment in the U.S.
importing cheap foreign workers by shifting U.S. investment overseas
importing cheap foreign workers by keeping U.S. investment at home
Accusations of American labor unions against U.S. multinational firms include all of the following except:
enjoy unfair advantage in taxation
export jobs by shifting technology overseas
export jobs by shifting investment overseas
operating at output levels where scale economies occur
Which business device involves the creation of a new business by two or more companies, often for a limited period of time:
multinational corporation
international joint venture
horizontal merger
vertical merger
International joint ventures can lead to welfare losses when the newly established firm:
adds to the pre-existing productive capacity
enters markets neither parent could have entered individually
yields cost reductions unavailable to parent firms
gives rise to increased amounts of market power
Multinational corporations:
always produce primary goods
always produce manufactured goods
produce primary goods or manufactured goods
none of the above
The migration of employable workers from low-paying nations to high-paying nations will
decrease wage rates in the low-paying nations
decrease productivity and real output in the world
increase business or capitalist incomes in the high-paying nations
increase business or capitalist incomes in the low-paying nations
The migration of electricians from low-paying nations to high-paying nations is most likely to be challenged by
electrician unions in the high-paying nations
electrician unions in the low-paying nations
electrician employers in the high-paying nations
electricians who stay in the low-paying nations
refers to the price charged for products sold to a subsidiary to a multinational corporation by another subsidiary in another country
marginal cost pricing
full cost pricing
price discrimination
transfer pricing
"Guest worker" programs usually result in temporary migration of workers from
impoverished countries to impoverished countries
impoverished countries to wealthy countries
wealthy countries to wealthy countries
wealthy countries to impoverished countries
Which of the following is not an example of foreign direct investment?
the construction of a new auto assembly plant overseas
the acquisition of an existing steel mill overseas
the purchase of bonds or stock issued by a textile company overseas
the creation of a wholly owned business firm overseas
was a strategy for industrial development, popular in Latin America in the 1950s-1960s, for promoting domestic production by erecting high protective tariffs on imports of manufactured goods.
export led growth
import substitution
dynamic hedging
countervailing duties
Referring to the above table, the U.S. balance of international indebtedness suggests that the U.S. is a net:
debtor
creditor
spender
exporter
For the first time since World War I, in the mid 1980s the United States became a net international:
exporter
importer
debtor
creditor
A country that is a net international debtor initially experiences a (an):
larger savings pool available to finance domestic spending
higher interest rate which leads to lower domestic investment
loss of funds to trading partners overseas
decrease in its services exports to other countries
Credit (+) items in the balance of payments correspond to anything that:
involves receipts from foreigners
involves payments to foreigners
increases the domestic money supply
decreases the demand for foreign exchange
Debit (-) items in the balance of payments correspond to anything that:
involves receipts from foreigners
involves payments to foreigners
increases the domestic money supply
decreases the demand for foreign exchange
When all of the debit or credit items in the balance of payments are combined:
merchandise imports equal merchandise exports
capital imports equal capital exports
services exports equal services imports
the total surplus or deficit equals zero
In the balance of payments, the statistical discrepancy is used to:
insure that the sum of all debits matches the sum of all credits
insure that trade imports equal the value of trade exports
obtain an accurate account of a balance-of-payments deficit
obtain an accurate account of a balance-of-payments surplus
A country's transactions with the rest of the world are recorded in the
balance of international indebtedness
balance of financial transactions
balance of payments
income statement
All of the following are credit items in the balance of payments, except:
investment inflows
merchandise exports
payments for American services to foreigners
private gives to foreign residents
All of the following are debit items in the balance of payments, except:
capital outflows
merchandise exports
private gifts to foreigners
foreign aid granted to other nations
A capital account surplus might be expected to cause a current account deficit because the associated
A capital account surplus might be expected to cause a current account deficit because the associated capital outflow would cause the nation's currency to depreciate, contributing to a trade deficit
capital inflow would cause the nation's currency to depreciate, contributing to a trade deficit
capital inflow would cause the nation's currency to appreciate, contributing to a trade deficit
capital outflow would cause the nation's currency to appreciate, contributing to a trade deficit
The role of is to direct one nation's savings into investments of another nation:
merchandise trade flows
services flows
current account flows
capital flows
The current account includes
the value of trade in merchandise
services
unilateral transfers
all of the above
The U.S. balance of payments is constructed by
the U.S. Department of Labor
the U.S. Department of Agriculture
the U.S. Department of Commerce
the Council of Economic Advisers to the President
Debit entries on the balance of payments are the entries that would
mean a loss of foreign exchange
bring foreign exchange into the country
indicate a surplus exists
exist at the bottom line after all accounts are totaled
In the balance of payments, travel and tourism are included in the category of
unilateral transfers
capital account
merchandise account
services account
Current account deficits are offset by
merchandise trade deficits
merchandise trade surpluses
capital/financial account surpluses
capital/financial account deficits
The difference between a country's balance of payments and its balance of international indebtedness
is equal to official reserve transactions
occurs because of foreign exchange fluctuations
reflects statistical discrepancies
reflects the difference between flow and stock concepts
A nation wishing to reduce its current account deficit would be advised to
engage in more government spending
reduce government taxes
increase private investment spending
decrease domestic consumption spending
A nation with a current account deficit will be
lending more money to other nations
experiencing a surplus in exports of goods and services
reducing its indebtedness to other nations
going further into debt with other nations
In the calculation of gross domestic product, net exports are
the sum of merchandise trade and services
the current account plus long-term capital
the value of merchandise exports minus imports
short-term capital plus the basic balance
A current account surplus implies that
the country is a net lender to the rest of the world
the country is running a net capital account surplus
foreign investment in domestic securities is at very low levels
all of the above
Purchases of government securities in the United States by foreigners is
a credit item in the current account
a debit item in the capital account
a credit item in the capital account
a debit item in the current account
When a country has a trade deficit, it
purchases more stocks and bonds from the rest of the world than it sells
purchases more goods from the rest of the world than it sells
sells more good to the rest of the world than it purchases
sells more stocks and bonds to the rest of the world than it purchases
In balance-of- payments accounting, tourism and travel are classified in the
merchandise trade account
services account
unilateral transfers account
capital account
Historically, countries at early stages of rapid economic development have tended to experience
trade deficits and an excess of investment over domestic saving
trade surpluses and an excess of investment over domestic saving
trade deficits and an excess of domestic saving over investment
trade surpluses and an excess of domestic saving over investment
The argument that U.S. current account deficits cause net job losses for Americans
is true by definition in all possible circumstances
is supported by recent U.S. history
focuses only on the overall economy and is thus always true
fails to recognize that a current account deficit is matched by an equal inflow of foreign funds which finances employment increasing investment spending
The "balance of trade" is a record of
exports and imports of financial assets
the current account plus capital account
the net export of goods and services
the value of merchandise exports minus imports
Direct investment and security purchases are classified as
capital account transactions
current account transactions
unilateral transfer transactions
merchandise trade transactions
is needed to ―balance‖ the balance of payments statement.
credit transactions
debit transactions
unilateral transfers
statistical discrepancy
