国际经济学作业.docVIP

Problem Set 3 Due Oct 25, 2012 1. If, beginning from a free trade equilibrium, the (net barter) terms of trade improve for a country, then it will (a) increase production of its import competing good. (b) increase consumption of its export good. (c) increase the quantity of its imports. (d) experience an export-biased shift in its production possibility frontier. (e) None of the above. 2. If a country lent money to another, this must (a) lower the terms of trade of the recipient country. (b) lower the terms of trade of both countries. (c) improve the terms of trade of the recipient country. (d) improve the terms of trade of the donor country (e) None of the above. 3. If the United States exports skilled-labor intensive products and services, then we should expect unions representing skilled labor to (a) lobby in favor of tariffs. (b) lobby against the imposition of tariffs. (c) be indifferent to the issue of tariffs. (d) lobby in favor of improved terms of trade. (e) Not enough information. 4. If a there are no international loans or capital flows, then if a country’s terms of trade improve, we would find that (a) the value of its exports exceeds the value of its imports. (b) the value of its exports becomes less than that of its imports. (c) the value of its exports exactly equals that of its imports. (d) the quantity of its exports equals that of its imports. (e) None of the above. 5. If PC/PF were to increase in the international marketplace, then (a) all countries would be better off. (b) the terms of trade of cloth exporters improve. (c) the terms of trade of food exporters improve. (d) the terms of trade of all countries improve. (e) None of the above 6. Multinational corporations may provide benefits to their home countries for the following reasons except which one? (a) Secure raw materials for the source country (b) Allow for exports of products, which involve company-specific trade secrets (c) Allow domestic firms to secure timely deliveries of com