A. balance of trade
B. comparative advantage
C. balance of payments
D. terms of trade
Related Mcqs:
- A ____ is a regional trading bloc in Which member countries eliminate internal trade barriers but maintain existing barriers against countries that are not member ?
A. free trade area
B. customs union
C. common market
D. monetary union - A country can still gain from trading certain goods even though its trading partners can produce those goods more cheaply. How is known this principle ?
A. Relative Advantage
B. Complete Advantage
C. Comparative Edge
D. Comparative Advantage - A country can still gain from trading certain goods even though its trading partners can produce those goods more cheaply. How is known this principle?
A. Relative Advantage
B. Complete Advantage
C. Comparative Edge
D. Comparative Advantage - ________ is said to exist when the formation of a regional trading group leads to the reduction of trade with nonmember countries in favor of member countries ?
A. trade creation
B. trade diversion
C. trade exclusion
D. trade distortion - Major trading partners of the United States including all of the following countries except ?
A. Canada
B. Mexico
C. China
D. North Korea - The arrangement where goods imported from trading partners in the developing world are subject to lower tariff rates than goods from other countries is referred to as ?
A. normal trade relation status
B. most favored nation status
C. offshore assembly provisions
D. Generalized System of Preferences - According to the trade theory of Staffan Linder trade tends to be most pronounced in manufactured goods when trading countries have ?
A. similar endowments of natural resources
B. similar levels of technology
C. similar per-capita incomes
D. similar wage levels - If two countries A and B are member of a currency union and there is a shift in consumer preferences away from the goods of country A and towards those of country B than which one of the following would help to offset the effect of the resulting changes in aggregate demand in A and B on inflation and unemployment in the tow countries ?
A. A high degree of labour mobility between the tow countries
B. An increase in government spending in country (A)
C. A depreciation in the foreign exchange value of the common currency
D. A low degree of capital mobility between the two countries - An export quota agreement to stabilize the price of bauxite tends to be more successful when the member producer countries as a percentage of the world’s producer countries is __________ and the _________ it is for the member producer countries to store/stock pile bauxite?
A. relatively small; more difficult
B. relatively small; easier
C. relatively large; more difficult
D. relatively large; easier - Vaccinating people for measles, rubella, polio and cholera to substantially increase net social benefits by improving the health and productivity of the population is an example of ?
A. economies of scale
B. external economies
C. negative externality
D. net present value
