International Trade 4th Edition by Feenstra - Test Bank

1.

What country was the world's largest exporter of goods in 2014?

A)

China

B)

Germany

C)

the United States

D)

Japan

2.

Which of the following is an example of trade of goods, otherwise known as trade flow?

A)

Robert Feenstra purchases $100 million of British treasury bonds.

B)

Robert Feenstra purchases a yogurt factory in France.

C)

Robert Feenstra purchases a British-made Range Rover.

D)

Robert Feenstra purchases 100 shares of Novartis AG, a Swiss pharmaceutical company.

3.

Currently, which of the following countries is the world's largest exporter of goods (in dollar volume)?

A)

China

B)

the United States

C)

Japan

D)

Germany

4.

Currently, which of the following countries is the world's largest exporter of goods and services (in dollar volume)?

A)

China

B)

the United States

C)

Japan

D)

Germany

5.

Which of the following is an example of a service export?

A)

Universal Pictures licenses the right to show the movie Jurassic Park to a Chinese theater chain.

B)

Joan Brown migrates from the United States to Canada.

C)

Tom Jones purchases 100 shares of Eaton Corporation, an Irish company.

D)

Monique le Flambeau, a French citizen, purchases a Ford F150 while visiting the United States.

6.

What is the term for a capital flow that is used to purchase or build a tangible asset like a factory?

A)

migration

B)

service exports

C)

service imports

D)

foreign direct investment

7.

What is the name given to a tax on imported goods?

A)

income tax

B)

tariff

C)

sales tax

D)

excise tax

8.

When a foreign resident purchases a good or service from someone in the United States, the transaction is:

A)

a U.S. export.

B)

a U.S. import.

C)

bilateral exchange.

D)

a compensating differential.

9.

Imports are:

A)

goods or services purchased from a foreign resident.

B)

goods or services sold to foreign residents.

C)

goods only purchased from foreigners—you cannot purchase services from foreigners.

D)

services only—imports do not include goods.

10.

Exports are:

A)

goods or services purchased from a foreign resident.

B)

goods or services sold to foreign residents.

C)

goods only sold to foreigners—you cannot sell services to foreigners.

D)

services only—exports do not include goods.

11.

Which of the following entries is considered a service export?

A)

Japan buys soybeans from the United States.

B)

China sells iPhones to the United States.

C)

Mexican tourists visit the Grand Canyon.

D)

France sells wine to the United States.

12.

Which of the following transactions is NOT a trade flow?

A)

domestic residents' purchases of foreign-made goods

B)

domestic residents' purchases of foreign-provided services

C)

domestic residents' purchases of foreign stocks and bonds

D)

domestic residents' purchases of foreign-produced software

13.

A country's service exports include:

A)

a restaurant meal purchased by its resident in another country.

B)

equipment or automobiles with a warranty and a service contract sold to a foreign resident.

C)

a ticket on a country's airline sold to a foreign resident.

D)

a country's resident who migrates to work in another country.

14.

The difference between the total value of a country's exports and the total value of its imports is defined as the country's:

A)

trade status.

B)

trade balance.

C)

trade deficit.

D)

bilateral trade balance.

15.

An American tourist buys a ticket to an opera in Paris. The U.S. government classifies this transaction as:

A)

a goods' import of a French Opera.

B)

a service export.

C)

a service import.

D)

a goods' export.

16.

A Chinese student pays tuition at a U.S. university. The Chinese government classifies this transaction as:

A)

a goods' import.

B)

a service export.

C)

a service import.

D)

a goods' export.

17.

If the value of a nation's imports is more than the value of its exports, then the nation is experiencing:

A)

a trade deficit.

B)

a trade surplus.

C)

balanced trade.

D)

a trade balance.