How much does sugar price in the US compare to the world markets

Which of the following statement of trade policy is correct

Every country till this day has certain trade barriers

Which of the following productions proves a country is a reach n well developed country?

         Computer chips, high tech products

What does default mean?

A country cant pay their international loan

What is trade legalization?

when countries like to remove tax on import and export goods

Why does everyone promote Trade legalization?

Researchers believe trade barriers are bad for economic     

What kind of countries are less likely to benefit from international trade?

The country who can produce everything they need at a way cheaper cost than any other country 

What is specialization?

Doing one specific part of a job all day

Why is specialization good for international trade?

Because the country that are most efficient at producing a single product, produce that product better

What is comparative advantage?

The ability of a country to benefit from specializing in what they can do best 

What is absolute advantage?

The country can produce certain product better then any other country

What are Factors of production to consider?

Land, Labor, Capital

What is a Fixed exchange rate?

Monetary system in which the exchange rate of currency is set a fixed price of another currency

What are examples of Trade Restricition?

Tarriff, quotas, import licencse, environmental restrictions

Which country started 2008 Credit crisis?

What is the effect of trade restrictions?

Domestric producers of a certain good can set price on product higher

What is the relationship between interest group and trade policy?

Some interest groups want to have trade barriers to protect domestic producer 

Why do some countries like floating exchange rate?

Countries enjoy the flexibility, the floating exchange create allow gov’t to pursue its own monetary policy. 

Why do we need  international monetary Regime?

There is no global govt that can coordinate monetary system

No one thinks that we should use the same currency

What is portfolio investment?

Investment in which investors have no role in managing the investing, simply provide capital

Which of the following is an example of an FDI

Toyota build automotive factory in Africa

FDI provides money, workers, has managerial role

Why do countries have trade restrictions?

Some interest groups will always benefit from trade restrictions 

Why do we have IMF?

To manage the international monetary system

What is quota?

Set a limit on imported goods

Why do we like FDI

FDI helps countries develop their infrastructure and build jobs

What is exchange rate?

The price of national currency compared to another national currency

IN which of the following will a foreign company invest into another country?

What is monetary policy?

The gov’t ability to effect the economy by manipulating money supply and demand?

Gold standard?

Countries tie their currencies to gold at a legally fixed price 

Why countries wont do business together?

If they have a dispute with eachother

Which of the following is the most important Monterary institution in the world?

Which of the following is the most important Monterary institution in the world?

         The INF

Default

Floating 

Fixed