Chapter 2 - World Trade: An Overview

2.1   Who Trades with Whom?

 

1) Approximately what percent of all world production of goods and services is exported to other countries?

• A) 10%

• B) 30%

• C) 50%

• D) 100%

• E) 90%

2) In 2019, United States top 15 trading partners do not include

• A) Australia.

• B) Mexico.

• C) Canada.

• D) China.

• E) Vietnam.

3) In 2019, United States top 15 trading partners account for ________ of the value of U.S. trade that year.

• A) 75 percent

• B) 25 percent

  t

• C) 50 percent

• D) 85 percent

• E) 90 percen

4) Annual Gross Domestic Product (GDP) measures

• A) the total value of all goods and services produced domestically in a country's economy in one year.

• B) the total value of all goods and services produced domestically and abroad by a country's citizens in one year.

• C) the total value of all goods and services attributed to each individual citizen of a country in one year.

• D) the total value of all goods and services imported and exported by a country in one year.

5) The gravity model offers a logical explanation for the fact that

• A) trade between Asia and the U.S. has grown faster than NAFTA trade.

• B) trade in services has grown faster than trade in goods.

• C) trade in manufactures has grown faster than in agricultural products.

• D) Intra-European Union trade exceeds international trade by the European Union.

• E) the U.S. trades more with Western Europe than it does with Canada.

6) The gravity model suggests that over time

• A) trade between neighboring countries will increase.

• B) trade between all countries will increase.

• C) world trade will eventually be swallowed by a black hole.

• D) the value of trade between two countries will be proportional to the product of the two countries' GDP.

7) The gravity model explains why

• A) trade between Sweden and Germany exceeds that between Sweden and Spain.

• B) countries with oil reserves tend to export oil.

• C) capital rich countries export capital intensive products.

• D) intra-industry trade is relatively more important than other forms of trade between neighboring countries.

• E) European countries rely most often on natural resources.

8) The gravity model explains why

• A) trade between the U.S. and Germany exceeds that between the U.S. and Sweden.

• B) countries with oil reserves tend to export oil.

  C) capital rich countries export capital intensive products.

  D) intra-industry trade is relatively more important than other forms of trade between neighboring countries.

  E) European countries rely most often on natural resources.

• C) capital rich countries export capital intensive products.

• D) intra-industry trade is relatively more important than other forms of trade between neighboring countries.

• E) European countries rely most often on natural resources.

9) According to the Gravity Model, the reason why the United States trades more heavily with Germany, the United Kingdom, and France than with other countries in Europe is because of

• A) the size of their economies.

• B) their ties to the European Union.  

• C) mutual rights and responsibilities.

• D) their currencies and trade policies.

10) According to the gravity model, a characteristic that tends to affect the probability of trade existing between any two countries is

• A) their cultural affinity.

• B) the average weight/value of their traded goods.

• C) their colonial-historical ties.

• D) the distance between them.

• E) the number of different product varieties produced by their industries.