Chapter 1: introduction

International Economics – 11^th Edition

CHAPTER 1: INTRODUCTION

1. 
   Economic interdependence is greater for:
   a. small nations
   b. large nations
   c. developed nations
   d. developing nations
   

2. 
   Globalization ____________:
   A) Is inevitable in a world with converging tastes for consumer goods.
   B) increases efficiency
   C) is often blamed for increasing inequalities in income distribution in
   the world.
   D) All of the above
   

3. 
   A rough measure of the degree of economic interdependence of a nation is given by:
   a. the size of the nations' population
   b. the percentage of its population to its GDP
   c. the percentage of a nation's imports and exports to its GDP
   d. all of the above
   

4. 
   The gravity model of international trade predicts that trade between two nations is larger
   a. the larger the two nations
   b. the closer the nations
   c. the more open are the two nations
   d. all of the above
   

5. 
   International economics deals with:
   a. the flow of goods, services, and payments among nations
   b. policies directed at regulating the flow of goods, services, and payments
   c. the effects of policies on the welfare of the nation
   d. all of the above
   

6. 
   The gravity model of international trade predicts that trade between two nations is larger
   a. the larger the two nations
   b. the closer the nations
   c. the more open are the two nations
   d. all of the above
   

True or False questions:

7. 
   True or False? Free trade restricts a nation’s ability to specialize in specific commodities that may allow for more efficient use of resources.
   

8. 
   True or False? The anti-globalization movement believes globalization benefits corporations and multinationals at the expense of human and environmental well-being.
   

Essay question:

9. 
   If nations gain from international trade, why do you think most of them impose some restrictions on the free flow of international trade?
   

Analytical question

10. 
    Does the trade between the United States and Brazil and Argentina follow the prediction of the gravity model?
    

() 1- Dominick Salvatore