Question

​ 10. For developing countries such as Mexico and Brazil, severe economic problems in the 1980s were caused by:

	a.	Low real interest rates in the United States
	b.	High levels of income and imports for the United States
	c.	High prices of basic raw materials and other commodities
	d.	A fall in the world demand for products produced by developing countries

15. The ______ is a theory of the balance of payments that shows how home-country spending on home-country goods changes relative to home-country output

	a.	​portfolio approach to currency depreciation
	b.	​absorption approach to currency depreciation
	c.	​monetary approach to currency deprecation
	d.	​elasticities approach to currency depreciation

32. Debt reduction

	a.	Refers to any voluntary scheme that lessens the burden on the debtor nation
	b.	May be accomplished through debt rescheduling
	c.	May be achieved through debt/equity swaps
	d.	All of the above

46. In defending its strategy of production outsourcing, Apple Inc. notes that

a. ​there are not enough American workers with the skills the company needs

b. ​the export subsidies of the U.S. government are too low

c. ​wages are too low in the United States to motivate people to work hard

d. ​U.S. import tariffs and import quotas are too high

Answer 1

Answer) 10) D) A fall in the world demand for products produced by developing countries.

Explanation- In 1980's the demand for the products produced by developing countries fell which resulted in to the debt crisis which caused the rise of debt on these developing country and resulted in debt crisis and severe economic problems in 1980's.

Answer) 15) B) ​Elasticities approach to currency depreciation

Explanation- The elasticity approach to the currency depreciation states that the according to the domestic output the spending on goods changes.

Answer) 32) D) All of the above

Explanation- The of the above are true about the debt reduction as it refers to any voluntary scheme that lessens the burden on the debtor nation and it could be achieved by debt rescheduling and/or debt/equity swaps.

Answer) 46) a) ​There are not enough American workers with the skills the company needs

Explanation- According to the Apple Inc, they started the outsourcing of their porudcts manufacturing as the qualified manpower to manufacture the apple devices was lower than the demand.