Question

Absolute and advantage theory forms the basis for international trade except during crisis - True False

COVID19 is an economic crisis for some economies of the world Question - True False

International economics is a field of study which assesses the implications of international trade in goods and services and international investment - True False

Exchange rates hardly impact the US trade with other countries - True False

USA has unfavorable balance of trade Question 18 options: True False )

The US imports more than it exports in general -  True False

Developing nations have less economic challenges compared to advanced economies - True False

The US ought to work with other countries like China and Russia despite their differences in order to improve economic outlook- true/false

Foreign direct investments help economic growth- true / false

Regional trade can be counter effective - true / false

Tariffs raise the price to the domestic consumer to reduce the quantity demanded- true /false

Answer 1

As we know that during any crises trade to take place is very important. The absolute and comparative advantage theory not only implies during good times but these theories have played an important role during crises as well. During crises like COVID-19 to import and export of masks and sanitizars is very crucial.

1). The correct option is (False).

2). The correct option is (False).

COVID-19 is pandemic diseases which has impacted each and every country of the world.Some are affected more some are affected less. WHO has declared it as pandemic on 11 March 2020.

3). The correct option is (True).

International economics palys an important role in understanding the trade patterns and investment patterns around the world.

4). The correct option is (False).

Exchange rates impacts the US trade with other countries as well.

5). The correct option is (True).

The USA has unfavourable balance of trade, it imports more than it exports.

6). The correct option is (True).

We know that US has a trade deficit, it imports more than it exports.

7). The correct option is (False).

The developing countries have more economic challenges than developed nations like mass poverty, unemlpoyment, low growth, high growth of population etc.

8). The correct option is (True).

Despite being the arc rival of China and Russia, USA is having close economic relations with them to have a strong economic outlook worlwide.

9). The correct option is (True).

FDI plays an important role in increasing the growth of an economy.

10). The correct option is (true).

Yes, Regional tarde could be counter effective as well.

11). The correct option is (True).

Tariffs raise the price of imported goods, Because of this, domestic producers are not forced to reduce their prices from increased competition, and domestic consumers are left paying higher prices as a result.

Hope you got the answer.

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