Missed a question here and there? Here are seven reasons for international trade: 1. Enhanced reputation. The international trade accounts for a good part of a country’s gross domestic product. A _______ is a tax on importing a good or service into a country. The first wave of globalization started in the nineteenth century and lasted up to the beginning of World War I. When the average cost of the typical firm declines as the output of the industry within a geographic area increases we call that: Which of the following is a market structure in which a large number of firms compete vigorously with each other in producing and selling varieties of a basic product? Test your knowledge on all of International Trade. Which of the following is occurring when a firm is selling it product for a low price in a foreign market, with the purpose of driving its foreign competitors out of business? The US is importing down pillows. international trade should be left largely unregulated but that government should subsidize job-skills training programs for workers who have lost their jobs because of trade. This trade diversifies the products and services that domestic customers can receive. International Trade is most likely to generate short-term unemployment in: a) Industries in which there are neither imports nor exports b) Import-competing industries c) Industries that sell to domestic and foreign buyers. Which of the following is not an expected effect of a tariff or nontariff barrier (NTB) on a product? Which of the following is occurring when a firm lowers its price to limit the decline in the quantity sold during a period of recession? Which of the following relationships represents a first-best world? We are all linked by international trade, and the volume of that trade has grown dramatically in the last few decades. The largest share of the export quota's "revenue effect" would tend to be captured by: Which of the following allocates import licenses on a first-come, first-served basis; on the basis of need or worthiness; or on the basis of negotiations? what are the reasons for international trade? Total trade equals exports plus imports. Perfect prep for International Trade quizzes and tests you might have in school. Trade drives 46% of the $86 trillion global economy. Which of the following is the basis for trade in a monopolistically competitive market? The world price of these pillows is $25. If the price of corn increases by 15% and the price of shoes remains constant, the Stolper-Samuelson theorem predicts that: Which of the following predicts that in the long-run following the opening of trade, labor will earn the same wage in the domestic market and in the foreign market? One of the advantages of international trade is that you may have an outlet to dispose of surplus goods that you're unable to sell in your home market. Which of the following would deny the export of goods, services, or assets to a particular country while allowing export to other countries? Test your understanding of International trade concepts with Study.com's quick multiple choice quizzes. The economic disturbances in one country are transmit­ted to others and their economy is upset. Which of the following is occurring when a firm with market power uses price discrimination between markets to increase its total profit? what does a negative balance of payment say about a country, a way to stop or slowdown certain foreign products from freely coming into a country, helps protect the economy and certain industries of a country from foreign competition, a limit on the amount of a good that can be imported, a country voluntarily limits the number of a product they ship to a country, a government prohibits the import of an item, what country have we had the longest embargo against, what are some problems created by trade barriers, 1.raide cost of foreign goods 2.trade wars 3.hurt economies by making them inefficient and unresponsive, a region where a group of countries agree to reduce or eliminate trade barriers, north American free trade agreement, eliminate trade barriers between US Canada and Mexico, European Union, trade organizations made up of European nations, ,ay lead to job loss because companies will relocate to the country in which it costs the least to produce their product, the worth of the countries money in terms of another country, what is the effect on the US when its dollar strengthens, we can buy foreign products cheaper, but foreign countries want buy as many of our products, what is the effect on the US when its dollar weakens, foreign countries will buy more of our products, but we cant buy as much foreign products. They may need or want the goods or services. 13-2.1. As a classroom topic, international trade has the great advantage of […] the US imposes a $10 tariff on pillows. Which of the following is true about embargoes? The _______ states that if a distortion is present, the most efficient way to eliminate the discrepancy between social and private benefits or costs is to use a policy tool that is directed at the source of the distortion. People or entities trade because they believe that they benefit from the exchange. It is a persistent feature of history. d. All of the above According to the classical theory of international trade: a. Which of the following is not necessary in order for a firm to be able to use persistent dumping in order to increase total profit? Classical liberals, such as Richard Cobden, believed that free trade could bring about world peace by substituting commercial relationships among individuals for competitive relationships between states. The ability of a country to produce a good at a lower opportunity cost than another country can. Which of the following has overseen the global rules of government policy toward international trade since 1995? Which of the following refers to the situation that arises when consumers view products produced in an industry as similar, but not perfect substitutes for each other? Doing business in other countries can boost your company's reputation. Which of the following is the net volume of new trade that results from the formation of a trade bloc? The US is a price taker in the pillow market. The opportunity cost of 1 pound of meat for the rancher is, Refer to Table 3-1. The labor theory of value *b. Which of the following suggests that a nation will export the commodity in the production of which a great deal of its relatively abundant and cheap factor is used? Not an example of intra-industry trade ( IIT ) share diversifies the products and services international... 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