France has a comparative advantage in the production of:

Use this table US | France Pairs of jeans 8 | 12 Bottles of wine 16 | 8 France has a comparative advantage in the production of: A. jeans only B....

France has an absolute advantage in the production of:

Use this table US | France Pairs of jeans 8 | 12 Bottles of wine 16 | 8 France has an absolute advantage in the production of: A. jeans only B....

Max electronics produces tiny wireless speakers that can be used with computers and MP3 players. The firm has built new factories to expand capacity and meet increasing domestic and foreign demand. Over the last six months, foreign and domestic competitors have emerged with a similar product in an attempt to benefit from high consumer demand. Max electronics is most likely in the _____ product stage of the product life cycle.

Max electronics produces tiny wireless speakers that can be used with computers and MP3 players. The firm has built new factories to expand capacity...

Different countries receive different amounts of international investment because interest rates differ country to country.

Different countries receive different amounts of international investment because interest rates differ country to country. A. True B. False ...

When a business is able to earn higher profits operating abroad then at home, the firm has ______.

When a business is able to earn higher profits operating abroad then at home, the firm has ______. A. Subsidies from its home government B. a location...

Which theory suggests that intra industry trade will occur?

Which theory suggests that intra industry trade will occur? A. Country Similarity and New Trade B. Product Life Cycle and Comparative Advantage C....

Which theory suggests that a country has a comparative advantage in producing products that intensively use resources it has in abundance?

Which theory suggests that a country has a comparative advantage in producing products that intensively use resources it has in abundance? A. Mercantilism B....

Assume we are operating under the gold standard. If the fixed exchange rate between the dollar and the yen is 120, and the dollar's par value is 60, what is the yen's par value?

Assume we are operating under the gold standard. If the fixed exchange rate between the dollar and the yen is 120, and the dollar's par value is 60,...

The United States currently has a trade _____. If we were operating under the gold standard, this would result in a

The United States currently has a trade _____. If we were operating under the gold standard, this would result in a A. deficit; decrease in the money...

Under the Bretton Woods System, countries pledged to maintain the value of their currencies within _____ of the par value. If a currency's value fell below that range, that country's central bank would ____ gold/foreign currency on the international forex market.

Under the Bretton Woods System, countries pledged to maintain the value of their currencies within _____ of the par value. If a currency's value fell...

Under the current international monetary system,

Under the current international monetary system, A. most countries have dollarized B. governments are barred from intervening to affect exchange...

As a result of the 1973 OPEC oil embargo,

As a result of the 1973 OPEC oil embargo, A. world oil prices tripled B. inflation spiked in oil-importing nations C. petrodollars were lent to developing...

The ____ records purchases of assets by the private and public sectors.

The ____ records purchases of assets by the private and public sectors. A. accounting system B. capital account C. capital fund D. current account...

Canadian aerospace company Bombardier buys a controlling stake in Brazilian aerospace company Embraer. This is an example of

Canadian aerospace company Bombardier buys a controlling stake in Brazilian aerospace company Embraer. This is an example of A. a capital inflow...

If domestic ownership of foreign assets falls, this is considered a

If domestic ownership of foreign assets falls, this is considered a A. capital inflow B. capital outflow C. current account debit D. current account...

The IMF uses ____ to determine voting power in the organization.

The IMF uses ____ to determine voting power in the organization. A. political clout B. official reserve levels C. quotas D. negotiations Answer: C....

Why did the Bretton Wood System collapse?

Why did the Bretton Wood System collapse? A. President Nixon was globally unpopular B. The IMF had exhausted all its funds trying to support it C....

The direct exchange rate is $1.65/£1. Then the indirect exchange rate is

The direct exchange rate is $1.65/£1. Then the indirect exchange rate is A. £0.61 / $1 B. $0.61 / £1 C. £1 / $1.65 D. £1.65 / $1 Answer: A....

Large international banks may profit from all of the following except

Large international banks may profit from all of the following except A. speculation B. the spread between the spot/ask price for currencies C. arbitrage D....

According to the international fisher effect, if the forward premium on a country's currency is shrinking, this must mean that

According to the international fisher effect, if the forward premium on a country's currency is shrinking, this must mean that A. the country's nominal...

Assume we are comparing the £ and the $. Suppose the annualized forward premium on the £ = 25%. The forward price of the £ = $1.80, and we are calculating the AFD based on the 6 month forward price. What is the spot price of the £?

Assume we are comparing the £ and the $. Suppose the annualized forward premium on the £ = 25%. The forward price of the £ = $1.80, and we are calculating...

Suppose £1 buys €1.50 in NY, Tokyo, and London. Which of the following statements is true?

Suppose £1 buys €1.50 in NY, Tokyo, and London.Which of the following statements is true? A. The cross rate and direct quote are the same, so there...

The cost of producing a football in Seminolia is $2. Seminole exports footballs to Gatorstan, where Seminola sells them for $1.90. This is an example of

The cost of producing a football in Seminolia is $2. Seminole exports footballs to Gatorstan, where Seminola sells them for $1.90. This is an example...

Is there an opportunity for two-point arbitrage?

Suppose: £1 buys €1.50 in NY, Tokyo, and London Is there an opportunity for two-point arbitrage? A. Yes, because the direct rates are the same in...

Africans pay up to ____ extra for goods because of ____.

Africans pay up to ____ extra for goods because of ____. A. 10%; transportation costs B. 40%; transportation costs C. 10%; underdeveloped infrastructure D....

Eurocurrency is

Eurocurrency is A. another name for the EU's currency, the euro B. money held outside its country of issue C. exactly the same thing as Eurodollars D....

Gatorstan has provided subsidies to its football gear manufacturing sector. As a result, the domestic supply of football gear has _____, causing the price to ____. Gatorstan is using a(n) policy.

Gatorstan has provided subsidies to its football gear manufacturing sector. As a result, the domestic supply of football gear has _____, causing the...

Assume that the majority of microchips in computers made and sold in the US come from China. If the U.S. imposes a tariff on chinese microchips, the equilibrium price of American-made computers will

Assume that the majority of microchips in computers made and sold in the US come from China. If the U.S. imposes a tariff on chinese microchips, the...

Which of the following would likely NOT support a U.S. tariff on microchips?

Which of the following would likely NOT support a U.S. tariff on microchips? A. American computer consumers B. American microchip manufacturers C....

You imported 10,000 kilos of fruit into the U.S. worth $500,000 and paid a tariff of $11,000. Then you must have paid a

You imported 10,000 kilos of fruit into the U.S. worth $500,000 and paid a tariff of $11,000. Then you must have paid a A. specific tariff of 11...

According to strategic trade theory, in global industries with ___ competitors, governments can make companies profitable by ____ them.

According to strategic trade theory, in global industries with ___ competitors, governments can make companies profitable by ____ them. A. many;...

An import tariff has been placed on foreign cars coming into the USA. This will _______ the demand for US cars and ______ the demand for foreign cars. With this change of demand, the price of US cars will _____.

An import tariff has been placed on foreign cars coming into the USA. This will _______ the demand for US cars and ______ the demand for foreign cars....

Which of the following is true when the forward price is less than the spot price?

Which of the following is true when the forward price is less than the spot price? A. The currency is selling at a forward premium B. The currency...

What is the difference between a currency futures contract and a swap?

What is the difference between a currency futures contract and a swap? A. A currency futures contract is an option not an obligation, while a swap...

Which of the following is a true statement about supply and demand?

Which of the following is a true statement about supply and demand? A. The currency demand curve is upward sloping B. As the price of a currency...

Assume we are operating under the Bretton Woods system. The British pound is pegged at US $3.50. Which of the following would NOT occur if the British pound depreciates to US $3.395?

Assume we are operating under the Bretton Woods system. The British pound is pegged at US $3.50. Which of the following would NOT occur if the British...

Which of the following is an example of capital outflow for Germany?

Which of the following is an example of capital outflow for Germany? A. GM sells stock in Audi to German resident B. Volkswagen exports the new 2014...

Which conclusion could NOT be drawn from the balance of payments regarding a particular country?

Which conclusion could NOT be drawn from the balance of payments regarding a particular country? A. The Balance of Payments can indicate currency...

When the market for a product stabilizes and it becomes more of a commodity, the product is most likely in which stage of the product lifestyle

When the market for a product stabilizes and it becomes more of a commodity, the product is most likely in which stage of the product lifestyle A....

A firm experiences economies of scale when

A firm experiences economies of scale when A. the average cost of producing a good decreases as the firm's output of the good decreases. B. the average...