What is most favored nation status?
a. Under international law, it is when one nation continually receives preferred
rulings by the International Court of Justice.
b. An agreement by which any state party to the agreement receives the same
terms of trade as the state that is most favored by each.
c. It is a term that refers to those states that have an excellent natural resource base.
Because of that base, they are said to be most favored.
d. In international monetary theory, any country that has a hard currency that is
convertible into gold is said to be most favored.
What was the system called that structured international economic affairs from the end of World War II until the early 1970s?
a. the American System
b. the Imperialist Economic System
c. the Bretton Woods System
d. the New International Economic Order
What are special drawing rights?
a. Known as paper gold, SDRs are based on the value of five major Western
currencies. They are to be used as a stop-gap measure to meet chronic balance of
payment deficits by countries that have currency shortfalls.
b. SDRs are the equivalent of petrodollars, and are used by OPEC countries to invest
in Western industrialized states including the United States.
c. Known as Lenin's gold, SDRs were used by communist states to facilitate trade
between each other.
d. SDRs are the guarantees that are reached between states so that exporters of a
particular product receive access to a state that imports that product under terms
as favorable as the state whose exports are most favored.
In the run-up to WWI, the forces of nationalism proved to be stronger than the forces of socialism and capitalism that bound people and states together.
Indicate whether this statement is true or false
What is one of the major drawbacks of a fixed exchange rate?
a. Countries that have chronic balance of trade deficits run out of foreign
currency.
b. It discourages investment between countries.
c. It encourages speculation in currencies.
d. none of the above
Quick Reply
