Question

Countries with a current account deficit will typically have

	a.	A financial and capital account surplus to offset the current account deficit
	b.	A balance of payment imbalance
	c.	A lower level of net omissions and errors
	d.	A higher level of net omissions and errors
	e.	A financial and capital account deficit What was the result of The Smoot-Hawley Tariff Act of 1933? a. The volume of trade between the US and European countries increased b. Had no impact on the trade between the U.S. and European countries c. Tariffs on imports entering the United States were lowered d. Nontariff trade barriers were removed e. European trading partners retaliated with their own tariffs on U.S. goods

Which one of the following statements is FALSE?

	a.	Generalized system of preferences program was created by industrialized nations to help developing nations improve their competitiveness
	b.	The World Bank was created to help finance infrastructure projects in developing nations
	c.	Under the generalized system of preferences program, industrialized nations reduced tariffs for developing nations' goods without expecting the developing nations to do the same
	d.	The International Monetary Fund (IMF) was created to help finance infrastructure projects in developing nations
	e.	The Organization of the Petroleum Exporting Countries (OPEC) was created for the benefit of oil producing and exporting countries

Apple Inc. plans to establish a subsidiarity in Taiwan to manufacture glass for iPhones. This practice is referred to as

	a.	Backward vertical diversification
	b.	Customs union diversification
	c.	Forward horizontal diversification
	d.	Forward vertical diversification
	e.	Backward horizontal diversification

Answer 1

Answer: 1

a) a financial and capital account surplus to offset the current account deficit.

Explanation:

: A current account deficit indicates that a country is importing more than it is exporting. and it is not always determined to a national economy.

: emerging economies offset surplus and developed countries tends to run deficits.

Answer: 2

c) Traffis on import entering the united states were lowered.

Explanation:

: The Smoot-Hawley Act increased traffis on foreign imports to united states.

: This act raised import duties to protect. And reduction of american exports came also the destruction ofamerican jobs.

Answer:3

a) generalized system of prefrence program was created by industrialized nation to help developing nation improve their competativeness.

Explanation:

:Generalized system of program was estrablished by" the trade act of 1974" , to promote economic growth in developing countries.

: World bank aim was to help rebuild european countries devastated by world war II.

: Goal of IMF was to avoid repetition of the destructive policies and to promote international monetary cooperation.

: OPEC aims to amanage the supply of oil in an effort to set the price of oil on the world market in order to avoid fluctuation.

Answer: 4

a) Backward vertical diversification.

Explanation:

: Backward vertical diversification is when a company expands backward on the production path into maunfacturing.

: Forward vertical diversification is when companies control the direct distribution or supply of their products.

: customer union diversification is a risk reduction strategy, that involves adding product, location, services, customers and market to companies portfolio.

: Horizontal diversification involves providing new and unrelated products and services to existing consumers.