1201 chapter 3

The United States has the largest economy. Which nation has the second largest economy and represents the largest annual bilateral trade relationship with the United States?

china

There are many reasons for imposing trade restrictions, however _______________ is not one of them.

decreasing job availability within a nation

Licensing is perhaps the easiest method of entering into international trade. Another method of entering international trade, which can be relatively low risk, is ______________ which opens several levels of involvement to company.

exporting

Since World War II international trade has

increased almost steadily

The _____________________ a federal agency, helps U.S. firms develop export promotion programs and gives assistance in competing in foreign markets by coordinating trade missions in foreign countries.

international trade administration

As trade has expanded internationally, many _____________________ have also become international in scope and have established branches in major cities around the world. This gives them the ability to provide their financial services where and when they are needed.

large banks

According to the International Monetary Fund (IMF), ___________ exports are growing annually. This region is home to 11 Free Trade Area countries.

latin america

what are some trade barriers?

revenue tariffs, embargo, protective tariffs

While international trade is as logical as interstate trade, some nations restrict imports of certain goods for a variety of reasons. The United States recently restricted the import of fresh tomatoes from Mexico. Why did the United States restrict the imports of tomatoes?

the Mexican fresh tomatoes were undercutting price levels of domestic fresh tomatoes

The economies of________ and ________ are the most dynamic, efficient, and most integrated in the world.

the US and Canada

The primary function of international economic organizations such as the World Trade Organization (WTO) is

to remove barriers to trade on a worldwide basis

The ____________________ , also known as the Common Market, is now an economic force to be recognized by even the most advanced economies such as of the United States and Japan.

European Union

The exporting trade in the United States has had a significant impact on the U.S. economy. In 2016, exports accounted for 11 million jobs—an increase of 3.3 million jobs since the 2009 recession. Which of the following is true about the impact of U.S. exports on the global economy?

The increase in trade volume over the past 65 years has been one of the most important factors in the rise of the living standards around the world

Which government agency could possibly provide a loan of up to $5 million to a small U.S. business that needed a short-term loan to start an export business?

U.S. Small Business Administration

Temporary trade restrictions may be used to give a new business

a chance to grow and become self-sufficent

There are several methods for entering international trade. Which of the following is not a method for entering international trade?

Creation of a business that is organized outside of any nation and operates on a multinational level "at home" in most countries of the world

What is the name of one of the United States federal agencies created to assist U.S. firms in developing export-promotion programs?

International Trade Administration

Which of the following is incorrect about the General Agreement on Tariffs and Trade (GATT)?

It is an international organization of 164 nations dedicated to creating and maintaining tariffs and other barriers to world trade.

The United States is a party to many trade agreements and international trade organizations. Which of the following trade organizations does not have the United States as a member?

MFN