Economic Interdependence is greater for :
A small nations
Large nations
Developed nations
Developing nations
A policy of developing local industries that can compete with imports is referred to as
Export promotion
Unbalanced growth
Industrial promotion
Import substitution
International Trade is most important to the standard of living of :
The united states
Switzerland
Germany
England
Economics suggest that trades main advantage is allowing the world to achieve;
More self - sufficiency
Greater equality between countries
Economic growth for all countries
Specialization and the resulting economics of scale
David Ricardo's theory in favour of free trade uses the idea of
Multilateral advantage
Mutual advantage
Absolute advantage
Comparative advantage
Over time , the economics interdependence of nations has
Grown
Diminished
Remained unchanged
Cannot say
The gravity model of International trade predicts that trade between two nations is larger
The larger the two nations
The closer the nations
The more open are the two nations
All of the above
If in a two nation ( A and B ) , two commodity ( X and Y ) world , it is established that nation A has a comparative advantage in commodity X, then nation B must have:
An absolute advantage in commodity Y
An absolute disadvantage in commodity Y
A comparative disadvantage in commodity Y.
Comparative advantage in commodity Y
Which of the following is not the subject matter of International finance?
Foreign exchange markets
The balance of payments
The basis and the gain from trade
Polices to adjust balance of payments duse equilibria
Economic theory :
Seeks to explain economic events
Seeks to predict economic events
Abstracts from the many details that surrounds an economic event
