The implementation of a common market involves all of the following except
| A. | elimination of trade restrictions among member countries |
| B. | a common tax system and monetary union |
| C. | prohibition of restrictions on factor movements |
| D. | a common tariff levied in imports from nonmembers |
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Option: B Explanation : Click on Discuss to view users comments. |
During the era of dollar appreciation, from 1981 to 1985, a main reason why the dollar did not fall in value was
| A. | flows of foreign investment into the United States |
| B. | rising price inflation in the United States |
| C. | a substantial decrease in U.S. imports |
| D. | a substantial increase in U.S. exports |
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Option: A Explanation : Click on Discuss to view users comments. |
When several countries jointly impose common external tariffs, eliminate tariffs on each other, and eliminate barriers to the movement of labor and capital among themselves, they have formed a/an
| A. | free trade area |
| B. | customs union |
| C. | common market |
| D. | economic union |
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Option: C Explanation : Click on Discuss to view users comments. |
Small nations with more than one major trading partner tend to peg the value of their currencies to
| A. | gold |
| B. | silver |
| C. | a single currency |
| D. | a basket of currencies |
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Option: D Explanation : Click on Discuss to view users comments. |
_____ represent the most widely used tool in international finance for measuring the average value of a currency relative to a number of other currencies.
| A. | nominal exchange rates |
| B. | real exchange rates |
| C. | cross exchange rates |
| D. | exchange rate indexes |
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Option: C Explanation : Click on Discuss to view users comments. |
