AGEC 452 Final Test With Complete Solutions
What cuban government agency imports food and constraints on doing business in
Cuba - ANSWER ALIMPORT
the major challenges facing US exporters in the Cuban market - ANSWER Electricity,
telephone, internet, port system, refrigeration
How did the United States and Cuba maintain unofficial diplomatic communications and
contact before full diplomatic relations were restored in 2015? - ANSWER Interests
Sections of the Swiss
Embassy
Who is the current president of Cuba? - ANSWER Raul Castro
What U.S. legislation allows US firms to export agricultural and food products to Cuba? -
ANSWER Trade Sanctions Reform and Export Enhancement Act of 2000
If you are employed by, or represent a food manufacturer, under what type of travel
license
may you legally go the Cuba to negotiate export sales? - ANSWER General License
Under what terms can US exporters ship food/ag products to Cuba? - ANSWER Cash in
advance
Which US Treasury office monitors/approves travel to Cuba? - ANSWER Office of
Foreign Assets
Control
Which US government department issues ag/food product export licenses in order for
US
firms to export to Cuba? - ANSWER US Department of Commerce
What three economic factors drive Cuba's economy? - ANSWER Nickel exports, tourism
and remittances
Contractionary, or tighter, monetary policy leads to: - ANSWER Lower money supply,
higher interest rates and an appreciation in the
exchange rate
A fiscal contraction results in: - ANSWER Reduction in money demand, lower interest
rates, weaker currency
, A monetary expansion that is implemented simultaneously with a fiscal
expansion will: - ANSWER Have an indeterminate effect on interest rates and currency
values
If the US Fed raises interest rates this month, what do you forecast will
happen to the exchange rate of the US dollar compared to other currencies: - ANSWER
Appreciate
What does the term LIBOR stand for and what economic variable does it
represent: - ANSWER London Interbank Offered Rate & interest rate
FOREX or FX - ANSWER Foreign exchange
arbitrage - ANSWER currency differences across markets
Bid Price - ANSWER Price at which the market will BUY currency
Ask Price - ANSWER Price at which the market will SELL currency
Spread - ANSWER Difference between Bid and Ask prices
Direct Quote - ANSWER number of home currency units that are exchange for 1 foreign
currency unit
Indirect Quote - ANSWER number of foreign currency units that are exchanged for 1
home currency unit
Appreciation - ANSWER increase in foreign price of domestic currency
Devaluation(Revaluation) - ANSWER Government induced reduction(increase) in the
value of a Nation's money
Depreciation(Appreciation) - ANSWER Market driven reduction(increase) in the value of
a nation's money
Fiscal - ANSWER Authority to Tax & Spend (Money demand)
Monetary - ANSWER authority over money supply changes and interest rates (Money
Supply)
What four entities may gain rents from a binding import quota? - ANSWER Domestic
importers,
foreign exporters, both share the rents or import government collects rents as revenue
What provision under NAFTA prevents discrimination against foreign investors and
allows a
Mexican firm to litigate against a US firm to recover damages? - ANSWER National
What cuban government agency imports food and constraints on doing business in
Cuba - ANSWER ALIMPORT
the major challenges facing US exporters in the Cuban market - ANSWER Electricity,
telephone, internet, port system, refrigeration
How did the United States and Cuba maintain unofficial diplomatic communications and
contact before full diplomatic relations were restored in 2015? - ANSWER Interests
Sections of the Swiss
Embassy
Who is the current president of Cuba? - ANSWER Raul Castro
What U.S. legislation allows US firms to export agricultural and food products to Cuba? -
ANSWER Trade Sanctions Reform and Export Enhancement Act of 2000
If you are employed by, or represent a food manufacturer, under what type of travel
license
may you legally go the Cuba to negotiate export sales? - ANSWER General License
Under what terms can US exporters ship food/ag products to Cuba? - ANSWER Cash in
advance
Which US Treasury office monitors/approves travel to Cuba? - ANSWER Office of
Foreign Assets
Control
Which US government department issues ag/food product export licenses in order for
US
firms to export to Cuba? - ANSWER US Department of Commerce
What three economic factors drive Cuba's economy? - ANSWER Nickel exports, tourism
and remittances
Contractionary, or tighter, monetary policy leads to: - ANSWER Lower money supply,
higher interest rates and an appreciation in the
exchange rate
A fiscal contraction results in: - ANSWER Reduction in money demand, lower interest
rates, weaker currency
, A monetary expansion that is implemented simultaneously with a fiscal
expansion will: - ANSWER Have an indeterminate effect on interest rates and currency
values
If the US Fed raises interest rates this month, what do you forecast will
happen to the exchange rate of the US dollar compared to other currencies: - ANSWER
Appreciate
What does the term LIBOR stand for and what economic variable does it
represent: - ANSWER London Interbank Offered Rate & interest rate
FOREX or FX - ANSWER Foreign exchange
arbitrage - ANSWER currency differences across markets
Bid Price - ANSWER Price at which the market will BUY currency
Ask Price - ANSWER Price at which the market will SELL currency
Spread - ANSWER Difference between Bid and Ask prices
Direct Quote - ANSWER number of home currency units that are exchange for 1 foreign
currency unit
Indirect Quote - ANSWER number of foreign currency units that are exchanged for 1
home currency unit
Appreciation - ANSWER increase in foreign price of domestic currency
Devaluation(Revaluation) - ANSWER Government induced reduction(increase) in the
value of a Nation's money
Depreciation(Appreciation) - ANSWER Market driven reduction(increase) in the value of
a nation's money
Fiscal - ANSWER Authority to Tax & Spend (Money demand)
Monetary - ANSWER authority over money supply changes and interest rates (Money
Supply)
What four entities may gain rents from a binding import quota? - ANSWER Domestic
importers,
foreign exporters, both share the rents or import government collects rents as revenue
What provision under NAFTA prevents discrimination against foreign investors and
allows a
Mexican firm to litigate against a US firm to recover damages? - ANSWER National
