333

GNP measures

the annual total value of final goods and services produced by domestically owned factors of production, regardless of where the factors are located.

Australia exported goods and services worth $0.84 trillion and imported goods and services worth $ 1 trillion. That resulted in a trade deficit o f $0.16 trillion. In the same year, Australian Gross Domestic Product equaled $14.61 trillion. The index of openness for Australia is _________.

12.59

Country A exported goods and services worth 4.37 trillion and imported goods and services worth 3 trillion. That resulted in a trade surplus of $1.37 trillion. In the same year, Country A's Gross Domestic Product equaled $12.01 trillion. The index of openness for Country A is _________. This indicates that Country A is relatively ________ to trade

61.36; open

Barriers to trade

A) include government policies such as tariffs and quotas. B) have been falling with technological improvements in transportation and communication. C) have risen since World War II as many countries have imposed higher tariffs. D)************ two of the above are true

The ratio of a country's exports and imports to its total output (GNP or GDP)

A) provides a rough measure of the importance of international trade for an economy. B) if calculated for the United States would be less than 20. C) Is known as the index of openness. D) *********** All of the above are true

Globalization

A) encourages specialization and trade via comparative advantage. B) increases interaction and integration between nations. C) encourages competition and results in lower consumer prices. D) all of the above are correct**********

10. Countries are more likely to trade with geographically close neighbors since

B) transportation costs are lower

9. Gross domestic product is the

B) market value of all final goods produced in a year.

After world war two, the pace of globalization increased due to:

B) worldwide decreases in average tariff levels.

The Index of openness tends to be smaller for

C) larger economies.

8. Historically, globalization and increased international trade is associated with

C) higher income growth.

The level of international trade has increased dramatically since World War II due to

C) technological advances in transportation and communication.

Which of the following is included in Germany's GDP?

China dishes produced by the English owned Wedgewood Company at a factory in Germany

5 . The difference between a country's Gross National Product (GNP) and its Gross Domestic product (GDP) is that:

GDP refers to production within the nation while GNP refers to production by domestic factors no matter where they are located.

GDP per capita is used as a rough measure of

a country's average individual income.

Globalization is most accurately defined as

a process of interaction and integration among people, firms, and governments of different nations, driven by international trade and investment and aided by information technology.

Globalization is primarily driven by

international trade.

Over 50% of EU member country exports go to

other EU countries

Per capita GDP is calculated as a country's GDP divided by its

total population.

Countries are more likely to trade with geographically close neighbors since

transportation costs are lower