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.