ECO 336 Exam 1 2025 Questions and
Answers
Which of the following kinds of agreements between two or more countries would be an
example of a deep integration measure? - ....ANSWER ...-An agreement to use the
same environmental standards in production
The International Monetary Fund (IMF), the World Bank, the General Agreement on
Tariffs and Trade (GATT) were formed - ....ANSWER ...-after World War II.
Question content area top
Part 1
An example of a foreign direct investment (FDI) would include - ....ANSWER ...-a
U.S. couple buying land for their dream retirement home in Costa Rica.
T/F: Domestic agricultural subsidies intended to support the nation's farmers would not
be considered a trade barrier so would not be disputed internationally. -
....ANSWER ...-False
T/F: More than 80% of the goods and services we buy are produced in domestic
markets. - ....ANSWER ...-True
One of the distinguishing characteristics of capital flow today is that -
....ANSWER ...-there are far more kinds of financial instruments than there were
100 years ago.
…FOR STUDENTS ONLY…©️2025 ALL RIGHTS RESERVED… 1
, Since the end of World War II, - ....ANSWER ...-world trade has grown more
rapidly than world output.
A major impact of the transatlantic cable was - ....ANSWER ...-a reduction in the
time required to complete a financial transaction between New York and London.
One important difference between the international economy of today and the economy
of 100 years ago is - ....ANSWER ...-the presence of international bodies such as
the IMF and World Bank.
Elimination of barriers to trade (tariffs and quotas) are referred to as _____ integration.
Negotiation over domestic policies that impact international trade are referred to as
_____ integration. - ....ANSWER ...-Shallow, deep
An important factor that increased international capital flows in the second half of the
nineteenth century was - ....ANSWER ...-technological innovations.
Free trade in goods is predicted to - ....ANSWER ...-provide consumers with lower
prices.
increase competition for workers and firms.
provide consumers with greater variety.
An example of foreign direct investment is - ....ANSWER ...-building a Starbucks
shop in Canada.
When world capital is allowed to flow freely between countries, it is expected that capital
will flow from - ....ANSWER ...-countries with abundant savings and capital to
countries with low savings and capital.
…FOR STUDENTS ONLY…©️2025 ALL RIGHTS RESERVED… 2
Answers
Which of the following kinds of agreements between two or more countries would be an
example of a deep integration measure? - ....ANSWER ...-An agreement to use the
same environmental standards in production
The International Monetary Fund (IMF), the World Bank, the General Agreement on
Tariffs and Trade (GATT) were formed - ....ANSWER ...-after World War II.
Question content area top
Part 1
An example of a foreign direct investment (FDI) would include - ....ANSWER ...-a
U.S. couple buying land for their dream retirement home in Costa Rica.
T/F: Domestic agricultural subsidies intended to support the nation's farmers would not
be considered a trade barrier so would not be disputed internationally. -
....ANSWER ...-False
T/F: More than 80% of the goods and services we buy are produced in domestic
markets. - ....ANSWER ...-True
One of the distinguishing characteristics of capital flow today is that -
....ANSWER ...-there are far more kinds of financial instruments than there were
100 years ago.
…FOR STUDENTS ONLY…©️2025 ALL RIGHTS RESERVED… 1
, Since the end of World War II, - ....ANSWER ...-world trade has grown more
rapidly than world output.
A major impact of the transatlantic cable was - ....ANSWER ...-a reduction in the
time required to complete a financial transaction between New York and London.
One important difference between the international economy of today and the economy
of 100 years ago is - ....ANSWER ...-the presence of international bodies such as
the IMF and World Bank.
Elimination of barriers to trade (tariffs and quotas) are referred to as _____ integration.
Negotiation over domestic policies that impact international trade are referred to as
_____ integration. - ....ANSWER ...-Shallow, deep
An important factor that increased international capital flows in the second half of the
nineteenth century was - ....ANSWER ...-technological innovations.
Free trade in goods is predicted to - ....ANSWER ...-provide consumers with lower
prices.
increase competition for workers and firms.
provide consumers with greater variety.
An example of foreign direct investment is - ....ANSWER ...-building a Starbucks
shop in Canada.
When world capital is allowed to flow freely between countries, it is expected that capital
will flow from - ....ANSWER ...-countries with abundant savings and capital to
countries with low savings and capital.
…FOR STUDENTS ONLY…©️2025 ALL RIGHTS RESERVED… 2
