Order Your Paper From the most reliable Essay writing Service. 

.

 



22 through 25

Question: Suppose that Mexico and Canada form a free-trade area. Mexicans then decrease auto manufacturing ...

Show transcribed image text Suppose that Mexico and Canada form a free-trade area. Mexicans then decrease auto manufacturing and increase imports of autos from Canada, while the Canadians decrease computer production and import more computers from Mexico. This is an example of: a. Trade diversion b. Trade creation c. Trade destruction d. Trade exhaustion A typical IMF stabilization package involves: a. erecting barriers against foreign investment. b. overvaluing the exchange rate. c. liberalization of exchange controls. d. a reduction in interest rates. e. all of the above. An argument in favor of foreign direct investment is that it tends to: a. reduce inequality. b. promote rural development. c. increase access to modern technology. d. decrease local ownership. e. none of the above. A motivation of developed countries in providing development assistance is: a. the creation of markets. b. geopolitical influence. c. genuine humanitarian concern. d. all of the above. e. none of the above.

Suppose that Mexico and Canada form a free-trade area. Mexicans then decrease auto manufacturing and increase imports of autos from Canada, while the Canadians decrease computer production and import more computers from Mexico. This is an example of: a. Trade diversion b. Trade creation c. Trade destruction d. Trade exhaustion A typical IMF stabilization package involves: a. erecting barriers against foreign investment. b. overvaluing the exchange rate. c. liberalization of exchange controls. d. a reduction in interest rates. e. all of the above. An argument in favor of foreign direct investment is that it tends to: a. reduce inequality. b. promote rural development. c. increase access to modern technology. d. decrease local ownership. e. none of the above. A motivation of developed countries in providing development assistance is: a. the creation of markets. b. geopolitical influence. c. genuine humanitarian concern. d. all of the above. e. none of the above.