Trading in foreign currencies has an effect on world trade

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1) In general, a capital-abundant country (such as the United States) tends to specialize in capital-intensive industry and export capital-intensive products, and import labor-intensive products. This statement is an illustration of the: Select one: A. commodity terms of trade theory B. supply and demand theory C. diminishing returns theory D. factor-sourcing theory E. factor endowment theory

2) The last step of the possible integration forms is the: Select one: A. cartel. B. common market. C. monetary union. D. political union E. Customs union.

3) The three main political ideologies are: Select one: A. Communism, capitalism and globalism B. Communism, capitalism and radicalism C. Communism, capitalism and modernism D. Communism, capitalism and Confucianism E. Communism, capitalism and socialism

4) In the __________________ stage of the international product cycle theory, U.S. companies typically increase exports to Europe and Japan as those foreign markets expand. Select one: A. introduction B. saturation C. growth D. Maturity E. decline

5) Trading in foreign currencies has an effect on world trade. For example, a rise in the value of the local currency due to daily flows vis-à-vis other currencies makes exports: Select one: A. less expensive. B. more expensive. C. Come under government control. D. Parallel with imports. E. Be banned.

Reference no: EM13950092

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