International Trade Policy Exam 1
The volume of trade between the United States and Canada for years 2013, 2014, and 2015 was (in billions of U.S. dollars):
585, 660, 577.
Why does the United States trade a lot with Mexico?
Cultural and linguistic ties, shared border, multinational corporations, and historical ties (all of the above).
In 2016, the United States ran a relatively modest trade--- with its second largest trading partner, Canada.
deficit of $11 billion
Compared to the average rate of growth in world merchandise trade since 1990, the most recent few years (since 2012)
have seen slower growth in trade.
US trade was essentially balanced up until 1976, ran moderate deficits 1977-1997, then mostly--- since then.
large trade deficits
When opening up to free trade with the rest of the world (ROW), all workers that were making energy in Morocco switch to making phosphoric acid. Under free trade, Morocco exports The rest of the world produces The rest of the world exports The relative price of phosphoric acid to energy in Morocco under free trade is ___________ the relative price that had existed in Morocco prior to trading.
only phosphoric acid. energy for sure and maybe phosphoric acid. only energy. more than
In 2015, the United States exported approximately--- to China.
$116 billion
While the United States imported $463 billion from China in 2016, exports from the United States to China were only---
$116 billion.
For 2015, U.S. goods and services exports were $2,230, imports were , and trade deficit was (all in billions).
$2,762, $532
World trade in goods and services currently (as of 2015) exceeds
$20 trillion.
In 2015, the United States ran a trade deficit with China of approximately---
$367 billion
In 2015, the United States imported approximately--- from China.
$483 billion
GDP was around $1,821 billion for Canada and $2,013 billion for Italy in 2012. U.S. bilateral trade with Canada was around $568 billion in 2012. U.S. bilateral trade with Italy was around--- in 2012.
$56 billion
Estimates indicate that the U.S.-Canadian border deters trade as much as if the countries were--- miles apart.
1,500-2,500
Based on 2015 data, agriculture is less than--- of world trade.
10%
Europe as a whole trades roughly as much with the United States as does
Canada.
Europe as a whole trades roughly as much with the United States as does---
Canada.
In 2015, the United States exported $281 billion to, imported $296 billion from, and ran a $16 billion trade deficit in merchandise with---
Canada.
Each European country's share of U.S. trade with Europe is roughly equal to its GDP as a fraction of--- GDP.
European
According to the gravity model, the volume of trade between the United States and another country depends on the:
GDP of each country and the distance between them.
Cars and boats are produced with labor. Under free trade with the rest of the world (ROW), Germany produces only cars (no boats). Germany must have comparative advantage in... Under free trade the rest of the world produces... Who can produce a car with the least amount of labor?... Who can produce a boat with the least amount of labor?...
Germany must have comparative advantage in cars Under free trade the rest of the world produces boats for sure and possibly cars. None of the above - cannot tell from the information provided. None of the above - cannot tell from the information provided.
Under free trade with the United States, the wage earned if workers make motor vehicles in Japan is higher than the wage earned if workers make aircraft in Japan. Japan produces The United States produces The United States exports The wage earned if workers make motor vehicles in the United States is ____________ the wage earned if workers make aircraft in in the United States (under free trade).
Japan produces only motor vehicles. The United States produces aircraft for sure and maybe motor vehicles. The United States exports only aircraft. less than or equal to
In 2015, the United States exported $236 billion in merchandise to its second largest export market---
Mexico.
Why does the United States trade a lot with Canada?
Multinational corporations Historical ties Cultural and linguistic ties Shared border
Under free trade, Malaysia exports electrical products and imports motor vehicles from the ROW and the wage when making electrical products equals the wage when making motor vehicles in the ROW. What does Malaysia produce under free trade? The free trade relative price is _____ than the relative price of motor vehicles in terms of electrical products that existed in Malaysia prior to international trade. The free trade relative price is _____ the relative price of motor vehicles in terms of electrical products that existed in the ROW prior to international trade. When Malaysia opens up to free trade (from autarky),
Only electrical products lower than equal to all workers making motor vehicles will move to making electrical products.
Under free trade with the rest of the world (ROW), the relative price of motor vehicles to broadcasting equipment is lower in Vietnam than it had been prior to trade. The ROW produces Vietnam produces Vietnam exports In Vietnam under free trade, the wage paid in the equipment sector is _____ the wage paid in the motor vehicles sector.
The ROW produces motor vehicles for sure and maybe broadcasting equipment. Vietnam produces only broadcasting equipment. Vietnam exports only broadcasting equipment. more than
When opening up to free trade, the relative price of paperweights to note cards falls in the rest of the world (ROW). Under free trade, Russia produces both note cards and paperweights. The rest of the world definitely has... Russia exports... Does Russia gain from trade?... When opening up to free trade, the relative price of paperweights to note cards in Russia...
The rest of the world definitely has a comparative advantage in producing note cards. Russia exports only paperweights. No, Russia is indifferent between trading and not trading. When opening up to free trade, the relative price of paperweights to note cards in Russia remains the same as before international trade.
In 2015 and 2016, the volume of bilateral trade between the United States and each of its 5 biggest trading partners mostly
decreased or stayed roughly the same.
In 2015 (compared to 2014) and 2016 (compared to 2015), the volume of bilateral trade between the United States and each of its 5 biggest trading partners mostly---
decreased or stayed roughly the same.
For 2015, $483 billion is amount of merchandise--- from China.
that the United States imported
Which of the following would be best explained by the gravity model? That the United States---
trades more with Canada than with France and Germany combined.
When opening up to free trade with Malaysia, some, but not all, workers making electrical products switch to making motor vehicles in the United States. In this situation, does Malaysia gain from trade? The free trade relative price is _____ the relative price of motor vehicles in terms of electrical products that existed in Malaysia prior to international trade. The free trade relative price is _____ the relative price of motor vehicles in terms of electrical products that existed in the United States prior to international trade. When Malaysia opens up to free trade (from autarky),
yes lower than equal to all workers making motor vehicles will move to making electrical products.
Prior to international trade, the relative price of cars to computers was lower in Mexico than in the United States. Under free trade with Mexico, the relative price of cars to computers in the United States remains the same as the relative price was in the United States before any trade took place. Does Mexico gain from trade Does the United States gain from trade? When the United States opens up to free trade (from autarky), When Mexico opens up to free trade (from autarky),
yes No for sure (the United States is indifferent to trade). some, but not all, workers making cars will move to making computers. all workers making computers will move to making cars.
