International Trade and Foreign Direct Investment

6262 Words Oct 30th, 2011 26 Pages
Chapter 2
International Trade and Foreign Direct Investment

True/False Questions

1. The classical international trade theories are from the perspective of a country. True; Easy

2. Trade surplus refers to a situation where the value of imports is greater than the value of exports. False; Easy

3. The economic theory of mercantilism stated that a country’s wealth was determined by the amount of its gold and silver holdings. True; Easy

4. Trade deficit refers to a situation where the value of exports is greater than the value of imports. False; Easy

5. The modern international trade theories explain trade from a firm, rather than a country, perspective. True; Easy

6. The new nations of the 1500s
…show more content…
Trade surplus refers to: a. the ability of a country to produce a good more efficiently than another nation. b. a situation where trade policies benefit select industries. c. a situation where exports are promoted by imposing restrictions on imports. d. a situation where the value of imports is greater than the value of exports. e. a situation where the value of exports is greater than the value of imports. e; Easy

29. Trade deficit refers to: a. a situation where the value of imports is greater than the value of exports. b. the ability of a country to produce a good more efficiently than another nation. c. a situation where exports are promoted by imposing restrictions on imports d. a situation where trade policies benefit select industries. e. a situation where the value of exports is greater than the value of imports. a; Easy

30. The strategy to promote exports by imposing restrictions on imports is called: a. capitalism. b. protectionism. c. liberalization. d. mercantilism. e. free trade. b; Easy

31. Neo-mercantilism refers to an economic policy in which: a. a country trades in manufactured goods with countries having similar per capita incomes. b. a country focuses on producing a good more efficiently than another nation. c. countries produce and export goods that required resources that were in great supply. d. countries promote a
Open Document