A. Increase all domestic costs and prices
B. Keep all domestic costs and prices at the same level
C. Lessen the amount of competition facing home manufacturers
D. Increase the amount of competition facing home manufacturers
Related Mcqs:
- 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 - S = Savings, I = domestic investment, X = exports of goods and services, and M = imports of goods and services Which of the following is true ?
A. S – I = X = M
B. S + I = X + M
C. S = I – (X+M)
D. S-I = X/M - International trade in goods and services is sometimes used as a substitute for all of the following except ?
A. International movements of capital
B. International movements of labor
C. International movements of technology
D. Domestic production of different goods and services - International trade tends to cause welfare losses to at least some groups in a country ?
A. The less mobile the country’s resources
B. The more mobile the country’s resources
C. The lower the country’s initial living standard
The higher the country’s initial living standard - When free trade areas are set up the member countries trade with each other grows faster than their trade with other countries This is due to what economist call ?
A. trade diversion
B. trade channeling
C. trade creation and trade diversion
D. trade creation - What is called the trade of goods or services without the exchange of money ?
A. Free exchange
B. Liberal Exchange
C. Barter
D. Bilateral Trade - Barter is the trade of goods or services with ?
A. free exchange of money
B. exchange of services
C. exchange of goods and services
D. None of them - Which round of international trade negotiations resulted in the creation of the World Trade Organization ?
A. Kennedy Round of 1964-1967
B. Tokyo Round of 1973-1979
C. Uruguay Round of 1986-1993
D. Doha Round of 2003-2007 - Developing countries that emphasize the production of raw materials or agricultural goods may realize a long-run deterioration in the international terms of trade because of ?
A. relatively low import tariffs maintained by advanced countries
B. highly elastic demand for these products in advanced countries
C. declines in the supplies of these products on world markets
D. sluggish demand for these products in advanced countries - Should international transportation costs decrease the effect on international trade would include a (an) ?
A. increase in the volume of trade
B. Smaller gain from trade
C. Decline in the income of home producers
D. Decrease in the level of specialization in production
