1/10/2019 Test: Chapter 2: World Trade, An Overview | Quizlet

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7 Matching questions

1. Define Multinational Corporation A. The close cultural ties, "common cultural language", which
lead to strong economic trade ties

2. Define Distance
B. Most trade are in manufactured goods, while historically
agricultural and mineral product makes up most of the trade.
3. Define Geography

C. The distance between market transportation cost as in the

4. Define the trade of today's
imports and exports during a trade

5. Define Cultural Affinity D. The multiple different corporation that the nations import
and export between their division
6. Define Service Outsourcing( Or Offshoring)
E. When a firm that provides services
7. Define Borders moves its operations to a foreign location. However it is not a
significant part of trade

F. It is the crossing borders that involves formalities that take

time, and exchanged perhaps monetary costs like tariffs
reduce trade.

G. The ocean harbors and a lack of mountain barriers to

make transportation and trade easier.

7 Multiple choice questions

1. China, consist of manufactured goods about 90%

A. What is the largest developing country and rapidly growing force in World Trade?

B. What 2 things increase the trade between countries?

C. What 1 thing influence and increase trade?

D. What is the Gravity Model Equation?

2. Europeans countries have the largest "Gross Domestic Product (GDP)"

A. Why do they have "Trade Agreement" between countries?

B. What does the gravity model predicts?

C. What did large fraction volume trade came from in the past?

D. Why does U.S. trade more with European countries than other?

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1/10/2019 Test: Chapter 2: World Trade, An Overview | Quizlet

3. Larger economies produce more goods and service, generate more income so they are able to buy more important. Among
that, trading between any two countries is larger than one.

A. What does the gravity model predicts?

B. What is good about volumes/larger economies?

C. What are some Political Factors?

D. What can the Gravity Model do?

4. To reduce tariffs that is needed to cross

borders, and therefore to increase trade between the countries.

A. What are few impediments to trade besides the size matter for trade?

B. What does the gravity model predicts?

C. Why do they have "Trade Agreement" between countries?

D. Why does U.S. trade more with European countries than other?

5. It can look for Anomalies (Something different, unexpected, not normal).

Ex) Netherlands & Belgium have transport cost advantage due to their location compare to European Countries

A. What does the gravity model predicts?

B. Why is "World Trade" special?

C. What can the Gravity Model do?

D. What are some Political Factors?

6. Culture, Geography, Multinational Corporations, & Existences of borders influence trade

A. What are some Political Factors?

B. What influence trades?

C. Define Cultural Affinity

D. What did large fraction volume trade came from in the past?

7. Agricultural and Mineral Products. It was mainly from Britain.

A. What did large fraction volume trade came from in the past?

B. What 2 things increase the trade between countries?

C. Why does U.S. trade more with European countries than other?

D. What 1 thing influence and increase trade?

6 True/False questions

1. It is the start of a fraction in world trade GDP to achieve unprecedented heights. It grew rapidly from 1870-1913 but suffered a
sharp decline in Great Depression → Why is "World Trade" special?

True

False

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1/10/2019 Test: Chapter 2: World Trade, An Overview | Quizlet

2. Free trade agreement between Mexico & Canada, which is called North America Free Trade Agreement (NAFTA)  → What did
U.S. signed in 1994?

True

False

3. The volume of trade that is directly related to GDP of each partners, and inversely relates it to the distance between
them. → What can the Gravity Model do?

True

False

4. A factor is such as wars, because it can change trade patterns much more innovation in transportation and communication

Ex) The Great Depression  → What are some Political Factors?

True

False

5. There are 5 things.

1) Distance. 2) Cultural Affinity. 3) Geography. 4) Multinational Corporation. 5) Border  → Why do they have "Trade Agreement"
between countries?

True

False

6. The Political factors have influence trade more in history → What 1 thing influence and increase trade?

True

False

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