ECN 306 Exam 2 Questions and
Answers14
A person living in the United States sends money to her family in Cuba. - ANSWERS -Which of
the following would be recorded in the current account?
ensure that the sum of all debits matches the sum of all credits - ANSWERS -In the balance of
payments, the statistical discrepancy is used to
If both France and Germany are in the European Union, then the European Union has -
ANSWERS -Made it harder for Americans to compete against Germans in the French Market
IMF conditionality refers to the - ANSWERS -changes a country must make in order to receive
IMF financial assistance.
GATT - ANSWERS -From the late 1940s until the creation of the WTO, the organization that was
primarily responsible for conducting rounds of trade negotiations was the
With a partial trade agreement - ANSWERS -two or more countries agree to liberalize trade in a
selected group of categories.
Trade diversion and Trade creation - ANSWERS -Assume Canada imports 100 million tons of
steal annually from Germany. Now suppose that after the United States, Canada, and Mexico
form a free-trade area, Canada begins importing the 110 million tons of steel from Mexico. This
is an example of
Regional trade agreements - ANSWERS -Which of the following is NOT an example of an
international public good?
, the WTO - ANSWERS -The international organization that serves as a forum for trade discussions
and the development of trade rules is called
to begin establishing rules on subsidies - ANSWERS -The Tokyo Round of the GATT negotiations
was notable because it was the first round
the same as its other trading partners - ANSWERS -Most favored nation (MFN) status means
that a country treats another country
North American Free Trade Association - ANSWERS -Which regional trade agreement permits
free trade among its members for all goods, while each member maintains freedom in its trade
policies towards non-member countries?
Agriculture and apparel - ANSWERS -Until the Uruguay Round of trade negotiations, which of
the following sectors were NOT included in the rules for international trade?
nonrival. - ANSWERS -If a good or service does not get used up as it is consumed, then it is said
to be
provide capital to underdeveloped countries. - ANSWERS -The primary mission of the World
Bank today is to
China is treated the same as other U.S. trading partners. - ANSWERS -When the United States
gives MFN status to China, it means that
Intercede by invitation when countries cannot pay their international debts. - ANSWERS -One of
the most important and most visible roles of the IMF is to
Answers14
A person living in the United States sends money to her family in Cuba. - ANSWERS -Which of
the following would be recorded in the current account?
ensure that the sum of all debits matches the sum of all credits - ANSWERS -In the balance of
payments, the statistical discrepancy is used to
If both France and Germany are in the European Union, then the European Union has -
ANSWERS -Made it harder for Americans to compete against Germans in the French Market
IMF conditionality refers to the - ANSWERS -changes a country must make in order to receive
IMF financial assistance.
GATT - ANSWERS -From the late 1940s until the creation of the WTO, the organization that was
primarily responsible for conducting rounds of trade negotiations was the
With a partial trade agreement - ANSWERS -two or more countries agree to liberalize trade in a
selected group of categories.
Trade diversion and Trade creation - ANSWERS -Assume Canada imports 100 million tons of
steal annually from Germany. Now suppose that after the United States, Canada, and Mexico
form a free-trade area, Canada begins importing the 110 million tons of steel from Mexico. This
is an example of
Regional trade agreements - ANSWERS -Which of the following is NOT an example of an
international public good?
, the WTO - ANSWERS -The international organization that serves as a forum for trade discussions
and the development of trade rules is called
to begin establishing rules on subsidies - ANSWERS -The Tokyo Round of the GATT negotiations
was notable because it was the first round
the same as its other trading partners - ANSWERS -Most favored nation (MFN) status means
that a country treats another country
North American Free Trade Association - ANSWERS -Which regional trade agreement permits
free trade among its members for all goods, while each member maintains freedom in its trade
policies towards non-member countries?
Agriculture and apparel - ANSWERS -Until the Uruguay Round of trade negotiations, which of
the following sectors were NOT included in the rules for international trade?
nonrival. - ANSWERS -If a good or service does not get used up as it is consumed, then it is said
to be
provide capital to underdeveloped countries. - ANSWERS -The primary mission of the World
Bank today is to
China is treated the same as other U.S. trading partners. - ANSWERS -When the United States
gives MFN status to China, it means that
Intercede by invitation when countries cannot pay their international debts. - ANSWERS -One of
the most important and most visible roles of the IMF is to
