The International Economy And Globalization

A. Higher interest rates
B. Higher income tax
C. Tariffs
D. Reduced government spending

A. Elimination of border controls
B. No import taxes on goods bought in another members country
C. Each country can retain its own technical standards
D. Common security arrangements

A. trade diversion
B. trade channeling
C. trade creation and trade diversion
D. trade creation

A. occurs when countries are granted most favored nation status
B. occurs when one country voluntarily agrees to reduce its exports to another country
C. occurs when two or more nations join to form a free-trade zone
D. Occurs when countries develop an acquired comparative advantage that makes their industries more competitive in international markets

A. employ many young or untrained workers
B. are competing with well-established overseas firms
C. are not yet large enough to achieve economies of scale
D. use a new technology

A. a quota
B. dumg
C. a tariff
D. an export subsidy

A. technological change
B. competitions with foreign suppliers
C. development of tourism
D. lower tariffs

A. resource; resource
B. foreign exchange money
C. opportunity; opportunity
D. money; opportunity

A. The industrial policies of governments
B. different sizes of the countries
C. different factor endowment between countries
D. the different tastes and preferences of people in different countries

A. services and white-collar jobs
B. manufacturing and blue-collar jobs
C. natural resource extraction and mining jobs
D. agriculture and farming jobs