An important insight of international trade theory is that when countries exchange goods and
services one with the other it
_______
A)
is typically harmful to the technologically lagging country.
B)
is typically beneficial only to the low wage trade partner country.
C)
is usually beneficial to both countries.
D)
is always beneficial to both countries.
E)
tends to create unemployment in both countries.
International economics can be divided into two broad sub
-
fields
A)
international trade and international money.
B)
developed and less developed.
C)
static and dynamic.
D)
macro and micro.
E) monetary and barter.
Since the period following World War II (the early 1950s), the proportion of most countries'
production being used in some other country
A) increased.
B) decreased.
C) remained constant.
D) increased slightly before dropping off.
E) fluctuated widely with no clear trend.
In the present, most of the exports from China are
_______
A)
services.
B)
overpriced by world market standards.
C)
primary products including agricultural.
D)
manufactured goods.
E)
technology intensive products.
Trade between two countries can benefit both countries if
_______
A)
each country exports that good in which it has a comparative advantage.
B)
each country enjoys superior terms of trade.
C)
each country produces a wide range of goods for export.
D)
each country has a more elastic supply for the exported goods.
E)
each country has a more elastic demand for the imported goods.
)
Given the information in the table above, if the world equilibrium price of widgets were 40
cloths, then
______
A)
neither country could benefit from trade with each other.
B)
both countries could benefit from trade with each other.
C)
each country will want to export the good in which it enjoys comparative advantage.
D)
both countries will want to specialize in cloth.
E)
neither country will want to export the good in which it enjoys comparative advantage.
If the world terms of trade equal those of country F, then
______
A)
neither country H nor F will gain from trade.
B)
country H but not country F will gain from trade.
C)
country F but not country H will gain from trade.
D)
country H and country F will both gain from trade.