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845International trade final ASSESSMENT 国际贸易代写 Question 1 Discuss the economic cost and benefits for a country joining the EU (European Union). [10 marks] Question 2 Consider a model where ...
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国际贸易quiz代考 1. If investment exceeds national savings, then the current account: a. must be negative. b. must be zero. c. must be positive.
If investment exceeds national savings, then the current account:
a. must be negative.
b. must be zero.
c. must be positive.
d. Not enough information is provided to answer the question.
Government budget deficits and trade deficits tend to move:
a. independently from one another.
b. together.
c. in the opposite directions.
d. independently from one another, except in recessions.
(Table: Hypothetical Irish National Income and Product Accounts Data) Are Ireland’s savings greater or smaller than its investment?
a. greater
b. smaller
c. the same size
d. Not enough information is provided to answer the question.
The financial account records international transactions involving:
a. high-value items, such as luxury autos, fine art, and jewelry.
b. financial assets and “real” assets, including property and structures.
c. corporate assets such as equipment, machinery, and other forms of capital.
d. goods and services sold on credit.
Which of the following would cause a financial account (FA) surplus?
a. the sale of heavy trucks used in construction by a domestic seller to a foreign buyer
b. the purchase of stock in a U.S. corporation by a U.S. buyer
c. the purchase of stock in a U.S. corporation by a foreign buyer
d. the sale of stock in a U.S. corporation held by a foreign owner to a domestic buyer
The balance of payments for any nation will always:
a. be in deficit because nations can spend more than they produce.
b. be in surplus because overall every nation has some wealth.
c. balance to zero because with a double-entry accounting system any transaction always generates an equal transaction with the opposite sign.
d. be unbalanced because at any point in time money has to be collected or goods could be in transit.
A nation that runs a current account deficit will also:
a. be a net importer of assets.
b. be a net exporter of assets.
c. suffer a lack of capital resources.
d. increase its external wealth.
A nation’s external wealth is defined as:
a. rest of the world (ROW) assets owned by the home nation minus home assets owned by foreigners.
b. home assets owned by foreigners minus ROW assets owned by the home nation.
c. home assets owned by foreigners plus ROW assets owned by the home nation.
d. home assets owned by foreigners, minus home assets owned by domestic entities, minus liabilities owned by domestic entities.
A change in a nation’s external wealth consists of two parts:
a. a change in GDP plus the change in income.
b. financial flows plus valuation effects.
c. an increase in liabilities to the rest of the world matched equally by an increase of external assets.
d. debits and credits.
External wealth can be increased in three ways. Which of the following is NOT a way for a nation to increase its external wealth?
a. selling assets to the rest of the world (ROW)
b. exporting more and importing less, thus increasing the current account balance
c. good fortune in holding assets that appreciate in value (capital gain)
d. forgiveness of debt or foreign aid or grants
Which of the following would cause a nation’s external wealth to decrease?
a. a decrease in domestic GDP
b. a decline in domestic real estate prices
c. a current account deficit
d. an increase in the unemployment rate
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