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Test Bank for International Trade, 5th Edition Feenstra (All Chapters included)

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Complete Test Bank for International Trade, 5th Edition by Robert C Feenstra and Alan M Taylor ; ISBN13: 9781319218454. (Full Chapters included Chapter 1 to 11)....1. Trade in the Global Economy 2. Trade and Technology: The Ricardian Model 3. Gains and Losses from Trade in the Specific-Factors Mo...

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TEST BANK

International Trade
5th Edition by Robert C Feenstra

Complete Chapters Test Bank
are included (Ch 1 to 11)

** Immediate Download
** Swift Response
** All Chapters included

,Name: Class: Date:

Chap 01 5e Feenstra

Indicate the answer choice that best completes the statement or answers the question.
1. Most FDI flows are owned by:
a. low-income nations.
b. Australia.
c. OECD nations.
d. the African continent.

2. Exports are:
a. goods or services purchased from a foreign resident.
b. goods or services sold to foreign residents.
c. goods sold to foreigners—you cannot sell services to foreigners.
d. services sold to foreigners—exports do not include goods.

3. Which of the following is NOT classified as horizontal FDI?
a. NUCOR, a U.S. steel manufacturer, purchases an iron ore mine in Australia.
b. BMW, a German auto manufacturer, constructs an auto assembly plant in South Carolina.
c. Burger King, an American fast-food chain, buys Canadian fast-food chain Tim Horton's.
d. General Motors, an American auto manufacturer, constructs an auto assembly plant in Toronto,
Canada.

4. What entries are used to calculate a country's bilateral trade balance?
a. its unemployment and inflation rates
b. its exports to and imports from another country
c. its per capita income and imports
d. its exports and per capita income

5. To maintain a steady domestic supply of medical equipment, some countries followed
a. export promotion policies.
b. export quota trade policy.
c. import tariff trade policy.
d. a reduction in trade-restrictive policies in general.

Page 1

,Name: Class: Date:

Chap 01 5e Feenstra

6. A Chinese student pays tuition at a U.S. university. The Chinese government classifies this transaction as:
a. an import of a good.
b. a service export.
c. a service import.
d. an export of a good.

7. Whenever the value of a nation's exports equals the value of its imports, the nation is experiencing:
a. a trade deficit.
b. a trade surplus.
c. balanced trade.
d. a trade balance.

8. Whenever the value of a nation's exports is less than the value of its imports, the nation has:
a. a trade deficit.
b. a trade surplus.
c. balanced trade.
d. a trade balance.

9. FDI flows into the United States and Europe are:
a. the largest in the world.
b. smaller than FDI to China.
c. smaller than their share of trade flows.
d. called horizontal FDI.

10. Between 2018 and 2019, average U.S. tariffs:
a. increased substantially.
b. decreased substantially.
c. remained unchanged.
d. could not be measured.

11. What caused the decline in trade during the 2008–09 financial crisis?
a. rising house prices, which took up more consumer income
b. recessions in many countries that reduced both exports and imports
c. greater productivity in the developing countries
d. pirate activity off the coast of Africa

Page 2

, Name: Class: Date:

Chap 01 5e Feenstra

12. Currently, which of the following countries is the world's largest exporter of goods and services (in terms of
dollar value)?
a. China
b. the United States
c. Japan
d. Germany

13. The difference between the total value of a country's exports and the total value of its imports is defined as
the country's:
a. trade status.
b. trade balance.
c. trade deficit.
d. bilateral trade balance.

14. Between 1890 and 2018, the trade/GDP measure for the United States:
a. decreased almost every year.
b. increased through 1920, then decreased through 1930 and remained low until increasing again from
1960 onward.
c. decreased through 1920, then increased through 1930 and remained high until decreasing again from
1960 onward.
d. remained unchanged.

15. Which of the following countries is NOT a member of the European Union?
a. Denmark
b. Finland
c. Norway
d. Sweden

16. Which of the following is considered a service export?
a. Japan buys soybeans from the United States.
b. China sells iPhones to the United States.
c. Mexican tourists visit the Grand Canyon.
d. France sells wine to the United States.

Page 3

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