Econ-3100 test 1 Questions with

Econ-3100 test 1 Questions with Complete Solutions (Latest 2025) Institutions that straddle borders - Correct Answers ✅WTO, world bank, IMF Trade balance - Correct Answers ✅the difference in value of exports vs imports

- surplus: export > import

• deficit export < import

- bilateral balance: difference of exports and imports between

• countries

trade deficit - Correct Answers ✅imports > exports want to be able to payback in the LR Bilateral trade defecit - Correct Answers ✅- difference of exports and imports b/n 2 countries

• can be overstated due to import products being made of

different parts in different places

international trade increased rapidly in the 1950's due to: -

Correct Answers ✅lower trade costs lower tariffs and barriers 1 / 3

Econ-3100 test 1 Questions with Complete Solutions (Latest 2025) income growth trade barriers - Correct Answers ✅Taxes, quotas, and other restrictions on goods entering or leaving a country.First Globalization - Correct Answers ✅- 1890-1918 "golden age"

• improved transportation

- Drivers of trade: proximity, tech, endowment differences,

economies of scale, different tastes tariffs - Correct Answers ✅- raise revenue for government expenditure

• improve terms of trade
• foster national pride in certain industries

trade and employment in the U.S. - Correct Answers ✅- as imports increase, manufacturing decreases but output has increased due to tech and automation

• have not seen globalization with immigrants and foreign

born citizens FDI - Correct Answers ✅Investment made by a foreign company in the economy of another country. 2 / 3

Econ-3100 test 1 Questions with Complete Solutions (Latest 2025) transaction costs - Correct Answers ✅costs of gathering information, arranging a market agreement, enforcing the agreement.quota - Correct Answers ✅A limit placed on the quantities of a product that can be imported

shallow vs deep integration - Correct Answers ✅Shallow:

the elimination of tariffs, quota's and other barriers that restrict the flow of goods across borders

Deep: beyond the barriers at each country's border; changes

in domestic laws that restrict trade

relative vs absolute terms - Correct Answers ✅Relative:

ratio of dollar values to GDP

• proportional to the size of national economies

Absolute: dollar amounts of trade and capital flows

world bank - Correct Answers ✅- Bretton woods institution

• original purpose was to provide assistance to war torn

europe

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