Question Details

A high home inflation rate relative to other countries 



1. Direct foreign investment by UK.-based MNCs occurs primarily in the Bahamas and Brazil.
a. true.	
B．false.

2. A tariff is a maximum limit on imports.
a. true.	
b. false.

3. A high home inflation rate relative to other countries would _______ the home country's 
current account balance, other things equal. A high growth in the home income level 
relative to other countries would _______ the home country's current account balance, 
other things equal. 
A) increase; increase 
B) increase; decrease 
C) decrease; decrease 
D) decrease; increase

4. If a country's government imposes a tariff on imported goods, that country's current 
account balance will likely __________ (assuming no retaliation by other governments).
A) decrease 
B) increase 
C) remain unaffected 
D) either A or C are possible

5. _________ purchases more U.S. exports than any other country. 
A) Japan 
B) United Kingdom 
C) Mexico 
D) Canada



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