International Economics

Study Guide, Chapter 1

Spring, 2004

1.         What overall criterion makes the study of international economics unique? List six features arising from this overall criterion that distinguish domestic and international transactions.

2.         Describe the growth of world trade in both nominal and real terms between the 1950s and 1990s viz-a-viz world output.

3.         What is meant by the U.S. being a relatively closed economy? If we sold goods exclusively “Made in America”, what consequences would ensue?

4.         Define and give examples of the following: a. Export-competing industries;

             b. Import-competing industries; and c. Non-traded goods.

5.         Give an example of an international service transaction and an international merchandise transaction.

6.         _________________________ is a condition that domestic and international trade have in common.

7.         The U.S. is viewed as a pivotal member in the world economy since its economy is

             relatively _________________ and _____________.

8.         Define a VER.

9.         Per the text, during 2000 in the United States, exports and imports measured approximately what percentages (respectively) of Gross Domestic Product?

10.       The greatest volume of world trade is accounted for by exports from

_________________ countries to ____________________ countries. (Developing to developing, developed to developing, etc.)

11.       Name one out of the two leading U.S. trade partners ________________.

12.       List three forums for trade and monetary issues.

13.       What are at least two reasons for the precipitous decline in world trade and output in 2001?

14.       What are the prospects for trade in the 2003 data yet to be published?

            2004?

15.       According to the WTO Trade Statistics, What country (or economic region) is the world’s leading exporter in merchandise trade for year 2002?

            Importer?

16.       Excluding intra-EU trade (i.e., viewing the EU as one common economic region), does this change the answer to the above? How?