Macro Chapter 8
The common currency established by the European Monetary Union is
Euro
Prior to 1995, the uniform system of rules for the conduct of world trade was called
GATT
The lender of last resort to discourage 150 member nations from devaluing their currency is the
International Monetary Fund.
Which one of the following is a major export of the United States?
Pharmaceuticals
The world's largest trading nation is
The United States
Our most important trading partner is
Canada
In 2009, the world's largest exporter became
China
Since 1980, our trade deficits have
became significantly larger
Today's C + I + G + Xn curve
lies below the C + I + G curve.
Net exports are equal to
negative
Our balance of trade in merchandise is ____ and our balance of trade in services is ____.
negative; positive
When U.S. companies contract out some of their jobs to other firms, and these other firms are overseas, that is called
offshoring
The basis for international trade is
specialization and exchange.
The U.S. trade surpluses turned into persistent trade deficits in
the 1970s
When net exports are added to C + I + G:
the C + I + G + Xn line is below the C + I + G line if the country has a trade deficit.
The North American Free Trade Agreement (NAFTA) created a free trade area including
the United States, Mexico, and Canada.
