International Trade and Capital Flows

International Trade

McDonalds is incorporated in USA and has operations all over the world.

Toyota is incorporated in Japan and has operations in many countries, including USA.

Which of the following statements regarding US GDP and GNP are true?

International Trade

The output per worker per day for countries A and B for bags and computers is as follows:

Which of the following statements is LEAST accurate.

International Trade

The output per worker per day for countries A and B for bags and computers is as follows:

Given that A exports to B, and A imports computers from B, which of the following statements is most accurate based on the Heckscher-Ohlin model.  (Assume bags are more labour intensive to produce, and computers are more capital intensive to produce)

A government wishes to lower the trade deficit, and fully capture the price increase as government revenue. Which of the following trade restrictions is most effective in doing this?

Trade Restrictions and Trade Agreements

Which of the following trade restrictions reduce national welfare of the importing country the most?

3 neighbouring countries have free trade of goods and services between them, and free movement of labour and capital goods. However, they have separate central banks and make their own economic policies. This is most likely a/an

Capital Restrictions

Which of the following is the LEAST valid reason for placing capital restrictions?

Balance of Payments

A country exports more than it imports. Which of the following statements is most likely?

Balance of Payments

A country imports more than it exports. Which of the following statements is most likely?

Trade Organisations

Match the goals/missions to the trade organisation. (Drag and drop)