Reading Comprehension Chapter 3 – Flashcards
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Nordstrom sells designer suits made in Italy in its stores in the United States. Nordstrom is _________ suits.
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Importing
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If the United States exports $100 worth of diamonds to the Kingdom of Mocha and imports $80 worth of bows and arrows, it has a(n)
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trade surplus
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Another name for an import duty is a(n)
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Tariff
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General Motors and Ford products produced in the United States are found around the world. The United States is ________ these automobiles
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Exporting
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The United States wishes to import no more than 100 million tons of sugar from India in any given year. The type of import restriction it should impose is a(n)
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Import Quota
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Which of the following best defines balance of trade?
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The total value of a nation's exports minus the total value of its imports over some period of time.
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A currency devaluation increases the cost of foreign goods and__________ the cost of domestic goods to foreign firms
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decrease
----> so the country can export more to foreign countries and import less
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Suppose France imposes a tax on agricultural products from the United States to help its own farmers. This describes a(n)
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protective tariff.
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A small country is just beginning its international trade activities. In so doing, it wants to _____ and to develop a favorable balance of trade.
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provide markets for its products
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Balance of payments is a _______ concept than balance of trade.
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broader
