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International econ - chapter 2 MC quiz - World Trade an Overview

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cmarquardt94's version from 2016-09-26 18:54

Section 1

Question Answer
Approximately what percent of all world production of goods and services is exported to other countries?30%
The gravity model offers a logical explanation for the fact that...Intra-European Union trade exceeds international trade by the European Union
The gravity model suggests that over time..?the value of trade between two countries will be proportional to the product of the two countries GDP
The [gravity model] explains why ....?trade between Swededn and Germany exceeds that between Sweden and Spain
According to the [gravity model], a characteristic that tends to affect the probability of trade existing between any two countries is..?the distance between them
In general, which of the following DO NOT tend to increase trade between two countries? [A) linguistic and/or cultural affinity] [B)historical ties] [C) larger economies] [D) mutual membership in preferential trade agreements] [E) the existence of well controlled borders between countries]E - the existence of well controlled borders between countries DOES NOT tend to increase trade between countries
memorize

Section 2

Question Answer
Why does the gravity model work?because Large economies tend to have large incomes and tend to spend more on imports
We see that the Netherlands, Belgium, and Ireland trade considerably more with the United States than with many other countries, this..?fails to be consistent with the gravity model, since these are small countries
The two neighbors of the United States do a lot more trade with the United States than European economies of equal size, this...?is consistent with predictions from gravity models
memorize

Section 3

Question Answer
Since the period following World War II (the early s), the proportion of most countries' production being used in some other country..?increased
Since World War II, the likelihood that foreign markets would gain importance to average exporters as a source of profits has..?increased
Since World War II, the likelihood that any single item in the typical consumption basket of a consumer in the U.S. originated outside of the U.S. has..?increased
Since World War II, the likelihood that the job of a new college graduate will be directly or indirectly affected by world trade has...?increased
Since World War II, the relative importance of raw materials, including oil, in total world trade has..?decreased
In the current Post-Industrial economy, international trade in services (including banking and financial services)..?is an increasingly important component of global trade
In the pre-World War I period, the U.S. exported mainly..?primary products including agricultural
In the pre-World War I period, the United Kingdom exported mainly..?manufactured goods
In the pre-World War I period, the United Kingdom imported mainly...?primary products including agricultural
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Section 4

Question Answer
In the present, most of the exports from China are..?manufactured goods
Which of the following DOES NOT explain the extent of trade between Ireland and the U.S.? A) historical ties B)cultural Linguistic ties C) Gravity Model D) multinational corporations E) large numbers of Irish-AmericansC) - Gravity model DOES NOT explain the extent of trade between Ireland and the U.S.
memorize

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