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1.Which of the following situations will arise in the domestic market following the removal of an import quota? a. imports increase, domestic production increases, prices increaseb. imports increase, domestic production decreases, prices decreasec. imports decrease, domestic production increases, prices decreased. imports decrease, domestic production decreases, prices increase
2.The WTO and GATT promote trade bya. reducing tariffs.b. eliminating quotas.c. reducing agricultural subsidies.d. All of these.
3.Which of the following statements is true? a. Free trade will benefit all workers in a nation equally.b. As a result of specialization some workers will be displaced and so harmed in the short run by free trade.c. Free trade leads to lower wages for all workers in both nations.d. Specialization will result in a decline in an industry and none of those workers will be able to find other jobs.
4.Today, the average U.S. tariff is 4.6 percent of the value of imported goods, which is very low by historical standards. TrueFalse
If the relative wage w/w* for US decreases to 5 due to productivity changes, which country would now be exporter of books, and why?
National Products Company participates in a highly competitive industry. In order to meet this competition and to get profit goals, the corporation has chosen the decentralized form of organization.
Assume that the world value of kiwi fruit is $20 per case and the United States equilibrium price with no international trade is $35 per case.
Choose a nation with international trade activities. Discuss the comparative advantage that would exist when selected nation has a margin of superiority.
The demand for money in a country is given by, Assume that the money supply is set by the central bank at $1,198,000. Determine the equilibrium interest rate.
Foreign direct investment (FDI) refers to investments in which the investor retains a long-term interest and some degree of control over the enterprise in which the investment takes place.
With the various sectors fighting each other in order to influence Japanese policy-makers, what is likely to happen to the yen and why was the yen strengthened even though the Japanese economy has been in a very sluggish growth pattern for a decade..
Discuss the process of starting a new international bond issue to market and what should a borrower consider before issuing dual currency bonds?
Dumaine Equipment Corporation closes its books regularly on December 31, but at the end of 2007 it held its cash book open so that a favorable balance sheet could be created for credit purposes.
Suppose if airline industry was operating under other market structures, how would equilibrium price and quantity differ? Would it be higher, lower, or same?
Describe why the United States would subsidize short run cost of production for tobacco farmers in foreign nations. Do these practices guarantee the tobacco farmers a profit in short run?
The world is becoming increasingly interdependent, and bank's consumers have rising choices in where and how they do their banking.
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