1. The terms “free trade” and “fair trade” have thesame meanings and may be used interchangeably.
True or False
2. Canada and the United States share the world’s longest openborder with 9 out of 10 Canadians residing within 100 miles of thatborder.
Trur or False
3. International trade depends on strong consumer demand for goodsand services as well as:
rising prices to guarantee top quality
liquid credit to fund payments
reduced output to ensure exclusivity
high trade barriers to regulate commerce
4. Top U.S. service export categories include all of thefollowing except:
business, professional, and technical services
royalties and license fees, transportation, and governmentservices
U.S. vehicle components destined for foreign automakers
financial and insurance services, and travel
5. The United States managed to reduce its trade deficit in 2008because at that time consumers held back on purchasing goods.
True
False
6. Major German exports include:
entertainment products such as films and music
chemical goods, vehicles, and machinery
steel and textiles
agricultural commodities such as wheat
7. Over the years, the United States has typically maintained astrong balance of trade surplus with Mexico.
True
False
8. The U.S. trade deficit with Japan is second only to its tradedeficit with China.
True
False
9. The U.S. balance of trade in services has traditionally showna surplus in the past decades.
True
False
10. The major purpose of the U.S. Department of Commerce Officeof Textiles and Trade (OTEXA) is to:
encourage and strengthen the domestic textile industry
coordinate overseas textile production with American designersand manufacturers
promote international textile and apparel trade shows in theUnited States
improve competitiveness in the U.S. textile, apparel, footwear,and travel-goods industries
12. CEOs of the banking and investment industriescite protectionism as the leading threat to continued U.S. andglobal economic growth.
True
False
13.
A nation’s GDP is made up of all of the following elementsexcept:
private business and residential investment
personal consumption expenditures
government consumption expenditures and investment, andexports
the sum total of imports from all sources