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

A country has a comparative advantage in the production of a product if the good’s _____ cost in different from the good’s _____ cost in another country ?

A. Resource; resource
B. Foreign exchange money
C. Opportunity; opportunity
D. Money; opportunity

One of the main advantages of trade economists suggest is ?

A. Technological change
B. Competitions with foreign suppliers
C. Development of tourism
D. Lower tariffs

If the Uk placed a limit on the amount of steel that could be imported into the UK in a particular period this would be an example of ?

A. A quota
B. Dumping
C. A tariff
D. An export subsidy

International trade in goods and services tends to ?

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

For the United States, commercial jetliners are ?

A. Imported, but not exported
B. Exported, but not imported
C. Imported and exported
D. Neither exported nor imported

A sudden shift from import tariffs to free trade may induce short-term unemployment in ?

A. Import-competing industries
B. Industries that are only exporters
C. Industries that sell domestically as well as export
D. Industries that neither import nor export

The most wave of globalization which began in the 1980s has emphasized the outsourcing of ?

A. Services and white-collar jobs
B. Manufacturing and blue-collar jobs
C. Natural resource extraction and mining jobs
D. Agriculture and farming jobs

A significant portion of actual world trade patterns results from ?

A. The industrial policies of governments
B. Different sizes of the countries
C. Different factor endowment between countries
D. The different tastes and preferences of people in different countries

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