Question Details

The direct foreign investment positions by U.S. firms 



1. An increase in the use of quotas is expected to: 
A) reduce the country's current account balance, if other governments do not retaliate. 
B) increase the country's current account balance, if other governments do not retaliate. 
C) have no impact on the country's current account balance unless other governments 
retaliate. 
D) increase the volume of a country's trade with other countries.

2. The U.S. typically has a balance-of-trade surplus in its trade with __________ . 
A) China 
B) Japan 
C) A and B 
D) none of the above


3. According to the text, international trade (exports plus imports combined) as a percentage 
of GDP is: 
A) higher in the U.S. than in European countries. 
B) lower in the U.S. than in European countries. 
C) higher in the U.S. than in about half the European countries, and lower in the U.S. 
than the others. 
D) about the same in the U.S. as in European countries.

4. The direct foreign investment positions by U.S. firms have generally ________ over time; the direct foreign investment positions in the U.S. by non-U.S. firms have generally
______ over time. 
A) increased; increased 
B) increased; decreased 
C) decreased; decreased 
D) decreased; increased

5. Which of the following is the biggest target of direct foreign investment by U.S. firms? 
A) Mexico. 
B) Japan. 
C) United Kingdom. 
D) Germany.




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