Question

Please solve the final answer for all following 10 multiple choice questions

1. Which argument does not refer to Preferential Trade Agreements (PTAs)?

O PTA reduces trade barriers among members but discriminate against non-member countries

O PTA promotes regionalism and is as such against the idea of multilateralism in trade

O Some people view that the formation of regional trade agreements (RTAs) undermine the WTO

O PTA encourages regionalism and it is harmful since it leads to trade diversion

O All are arguments against the formation of PTAs

2. When two foreign exchange marketers negotiate at the present time on the rate of exchange of currencies, but the exchange occurs in the future date, the rate they negotiate is called:

O Bid- Ask rate

O A Spot rate

O A Forward rate

O All of the above

3. Which statement is not true about the Global Agriculture and Food Trade?

O Global food and agricultural trade contributes a lot to feed the world population

O From the experience of the past 50 years, the world will soon have a liberalized (free) trade in the next 10 to 20 years

O A free trade is more beneficial for food security of countries than trade with protection

O All are true

4. How did the UAE manage to attract a significant amount of foreign capital investment in to the country?

O Through adoption of an open-door policy for foreign investors

O Having improved infrastructure and the ease of doing business

O Presence of business investment opportunities in the country

O The expansion of Free Trade Zones attracted investments

O All of the above

5. Terms of trade is calculated by dividing value of exports by the value of imports and multiplied by 100. If the terms of trade is less than 100%,which one is true?

O less capital is going out of the country for imports than a country earns from export

O more capital is going out of the country for imports than a country earns from export

O what the country earns from export and pays for import are the same or equal

O All are true

O None of the above is true

6. One is not true about the Foreign Exchange Market?

O It is a world-wide network of commercial banks linked by communication technologies

O Foreign Exchange market operates only half of the day around the world

"O It is the world’s largest market

O Foreign Exchange market is the most efficient market

O All of the above is true

7. Which criteria is used to measure economic development of a country?

O Growth of an economy

O Levels of consumption of goods and services by citizens of a country

O Level of educational achievement in a country

O Level of adequacy of housing or shelter

O Access to and quality of health care and achievement in life expectancy

O All of the above

8. An antitrade-biased economic growth is

O An export-expanding type of economic growth

O An import-replacing growth

O A Pro-trade biased growth

O None of the above Question

9. The use of robots in the heavy manufacturing industries is an example of

O Labor-saving technological change

O Capital-saving technological change

O Capital -intensive technological change

O Labor- intensive technological change

O A and C only

10. The international flow of factors of production refers to:

O The flow of goods and services due to trade

O Migration of skilled and unskilled workers (labor) between countries

O The flow of capital from country to country

O B and C

O None of the above

Answer 1

1. PTA promotes regionalism and is as such against the idea of multilateralism in trade.

Although PTAs promote regionalism but they are not against the idea of multilateralism in trade. Rather they promote trade in member countries.

2. A forward rate. It is occurs on financial transactions that take place in future.

3. All are true.

4. All of these.

5. If the TOT is less than 100%, it means that more capital is going out of the country for imports than a country earns from export.

6. Foreign Exchange market operates only half of the day around the world. On the contrary , foreign exchange market works 21 hours a day. Hence this statement is not true.

7. All of the above.