ECO 336 MIDTERM EXAM 2025
QUESTIONS AND ANSWERS
BRIC Countries - ....ANSWER ...-Brazil, Russia, India and China. The term
was first used by Jim O'Neil at Goldman Sachs in 2001 to single out four large
economies with the potential to dramatically alter world trade and payments
Deep Intergration - ....ANSWER ...-Economic intergration beyond removal
of barriers at each country's border. Deep intergration requires changes in
domestic laws and regulations that sometimes inadvertently restrict trade.
Foreign Direct Investment (FDI) - ....ANSWER ...-The purchase of physical
assets such as real estate or businesses by a foreign company or individual. It can
be outward (citizens or businesses in the home country purchase assets in a foreign
country) or inward (foreigners purchase assets in the home country).
Gross Domestic Product (GDP) - ....ANSWER ...-The market value of all
final goods and services produced in a year inside a nation.
Quotas - ....ANSWER ...-A numerical limit on the volume of imports.
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, Regional Trade Agreements (RTA) - ....ANSWER ...-Agreements between
two or more countries, each offering the others preferential ccess to its markes.
RTAs provide varying degrees of access and variable amounts of deep integration.
Shallow Intergration - ....ANSWER ...-The elimination or reduction of
tariffs, quotas, and other border-related barriers (such as customs procedures) that
restrict the flow of goods across borders.
Tariffs - ....ANSWER ...-Taxes imposed on imports. tariffs raise the price to
the domestic consumer and reduce the quantity demanded.
Trade-to-GDP ratio - ....ANSWER ...-The ratio of exports plus imports to
GDP; often used as an indicator of the relative importance of international trade in
a national economy.
Transaction Cost - ....ANSWER ...-The costs of gathering market
information, arranging a market agreement, and enforcing the agreement.
Transaction costs include legal, marketing, and insurance costs, as well as quality
checks, advertising, distribution, and after-sales service costs.
Bretton Woods conference - ....ANSWER ...-A small town in New
Hampshire that was, in July 1944, the site of talks establishing the international
financial and economic order after WW2. The international Monetary Fund and
the World Bank emerged as a result
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
QUESTIONS AND ANSWERS
BRIC Countries - ....ANSWER ...-Brazil, Russia, India and China. The term
was first used by Jim O'Neil at Goldman Sachs in 2001 to single out four large
economies with the potential to dramatically alter world trade and payments
Deep Intergration - ....ANSWER ...-Economic intergration beyond removal
of barriers at each country's border. Deep intergration requires changes in
domestic laws and regulations that sometimes inadvertently restrict trade.
Foreign Direct Investment (FDI) - ....ANSWER ...-The purchase of physical
assets such as real estate or businesses by a foreign company or individual. It can
be outward (citizens or businesses in the home country purchase assets in a foreign
country) or inward (foreigners purchase assets in the home country).
Gross Domestic Product (GDP) - ....ANSWER ...-The market value of all
final goods and services produced in a year inside a nation.
Quotas - ....ANSWER ...-A numerical limit on the volume of imports.
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
, Regional Trade Agreements (RTA) - ....ANSWER ...-Agreements between
two or more countries, each offering the others preferential ccess to its markes.
RTAs provide varying degrees of access and variable amounts of deep integration.
Shallow Intergration - ....ANSWER ...-The elimination or reduction of
tariffs, quotas, and other border-related barriers (such as customs procedures) that
restrict the flow of goods across borders.
Tariffs - ....ANSWER ...-Taxes imposed on imports. tariffs raise the price to
the domestic consumer and reduce the quantity demanded.
Trade-to-GDP ratio - ....ANSWER ...-The ratio of exports plus imports to
GDP; often used as an indicator of the relative importance of international trade in
a national economy.
Transaction Cost - ....ANSWER ...-The costs of gathering market
information, arranging a market agreement, and enforcing the agreement.
Transaction costs include legal, marketing, and insurance costs, as well as quality
checks, advertising, distribution, and after-sales service costs.
Bretton Woods conference - ....ANSWER ...-A small town in New
Hampshire that was, in July 1944, the site of talks establishing the international
financial and economic order after WW2. The international Monetary Fund and
the World Bank emerged as a result
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
