Podcast
Questions and Answers
What is external debt?
What is external debt?
- Debt owed to domestic creditors in foreign currency
- Debt owed to foreign creditors in domestic currency
- Debt owed to foreign creditors and denominated in foreign currency (correct)
- Debt owed to international organizations
Which indicator does growing public debt serve as according to the text?
Which indicator does growing public debt serve as according to the text?
- Tax increases
- Reduced growth (correct)
- Rising inflation
- Increasing austerity
What is the main purpose of a country’s balance of payments (BOP)?
What is the main purpose of a country’s balance of payments (BOP)?
- Tracking government spending
- Monitoring domestic inflation rates
- Reporting trade and financial interactions with the rest of the world (correct)
- Recording all economic transactions within the country
Which components make up a country's balance of payments?
Which components make up a country's balance of payments?
According to mercantilism, how should countries handle trade?
According to mercantilism, how should countries handle trade?
What does Factor-Mobility Theory focus on in relation to countries' competitive positions?
What does Factor-Mobility Theory focus on in relation to countries' competitive positions?
What is the primary purpose of using import trade controls as a foreign policy weapon?
What is the primary purpose of using import trade controls as a foreign policy weapon?
Which of the following is NOT a type of tariff mentioned in the text?
Which of the following is NOT a type of tariff mentioned in the text?
Which of the following is a criterion for assessing tariffs?
Which of the following is a criterion for assessing tariffs?
What is the purpose of the Cotonou Agreement mentioned in the text?
What is the purpose of the Cotonou Agreement mentioned in the text?
Which of the following is NOT a purpose of tariffs?
Which of the following is NOT a purpose of tariffs?
Which of the following statements about import trade controls is NOT supported by the text?
Which of the following statements about import trade controls is NOT supported by the text?
What does a favorable balance of trade indicate?
What does a favorable balance of trade indicate?
According to the Theory of Absolute Advantage, why should citizens buy goods from abroad?
According to the Theory of Absolute Advantage, why should citizens buy goods from abroad?
What does Neomercantilism aim to achieve by running an export surplus?
What does Neomercantilism aim to achieve by running an export surplus?
What type of advantage considers climate, natural resources, and labor force availability?
What type of advantage considers climate, natural resources, and labor force availability?
Which type of technology enables a country to produce a unique or easily distinguished product?
Which type of technology enables a country to produce a unique or easily distinguished product?
According to the Theory of Specialization, what forms the basis of a country's wealth?
According to the Theory of Specialization, what forms the basis of a country's wealth?
What can wreak havoc on economies that depend on the export of primary products?
What can wreak havoc on economies that depend on the export of primary products?
What leads to a deterioration in the terms of trade for emerging economies?
What leads to a deterioration in the terms of trade for emerging economies?
What is the aim of countries engaging in export-led development?
What is the aim of countries engaging in export-led development?
Why might foreign companies invest in a restricted area due to import restrictions?
Why might foreign companies invest in a restricted area due to import restrictions?
What does industrialization under export-led development emphasize?
What does industrialization under export-led development emphasize?
What does every nation monitor in relation to its economic welfare?
What does every nation monitor in relation to its economic welfare?
What is the primary reason for implementing import quotas?
What is the primary reason for implementing import quotas?
What is a key advantage of Voluntary Export Restraints (VERs) over import quotas?
What is a key advantage of Voluntary Export Restraints (VERs) over import quotas?
What is the purpose of 'Buy Local' legislation?
What is the purpose of 'Buy Local' legislation?
Which of the following is NOT an example of a non-tariff barrier mentioned in the text?
Which of the following is NOT an example of a non-tariff barrier mentioned in the text?
What is the purpose of standards and labels for imported goods?
What is the purpose of standards and labels for imported goods?
What is the purpose of foreign-exchange controls in the context of international trade?
What is the purpose of foreign-exchange controls in the context of international trade?
