What lessons did Mexico's policy makers learn from the 1980s debt crisis? What reforms did President Salinas pursue? What were his main goals?
What will be an ideal response?
Question 2 - One advantage of the specialization that results from international trade is that countries can take advantage of
A) scale economies.
B) production diversification
C) smaller countries.
D) taste reversals.
E) lower transport costs.
Question 3 - Which region has the highest proportion of its children working?
What will be an ideal response?
Question 4 - Compare and contrast NAFTA and the EU in terms of the types of agreements that they are, the institutions that operate under the agreement, and the long term goals of the arrangements.
What will be an ideal response?
Question 5 - If U.S. export contracts are written in terms of foreign currency and import contracts are denominated in domestic currency, a devaluation of the dollar during the currency contract period
A) should increase the dollar value of exports.
B) should not have any effect on the dollar value of U.S. imports.
C) must increase the BOT.
D) All of the above
Question 6 - The various bundles of goods that a country can obtain by taking advantage of international trade is known as
A) the non-indifference curve.
B) the consumption possibility frontier.
C) the production possibility frontier.
D) the trade possibility frontier.
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