Answer the following questions.
Question 1) Identify and write the example of the four kinds of flows that link the U.S. economy with economies of other nations.
Question 2) Explain the relative significance of U.S. exports of goods when compared to other industrialized countries and position of the U.S. exports as the percentage of total world trade.
Question 3) Explain pattern of U.S exports and imports of goods and the services since 1975 both in terms of percentage of GDP and absolute dollars.
Question 4) Compare dollar value of U.S. exports and imports of goods and dollar value of U.S. exports and imports of services.
Question 5) Write down the principle of imports and exports.
Question 6) Write down most significant trading partner.
Question 7) Describe the principles of comparative advantage, terms of trade, and gains from trade.
Question 8) Describe how foreign exchange rates are determined and how the change in an international price of a currency can affect price of exports and imports and volume of exports and imports.
Question 9) Explain four ways in which governments interfere with free trade among nations.
Question 10) Explain the political reasons that influence governments to impose trade barriers.
Question 11) Explain purposes of GATT and the WTO and describe the criticisms of the WTO.
Question 12) Explain what you mean by a trade bloc or a free-trade zone and list two regional trade blocs.