It costs a computer manufacturer £2000 to produce a personal computer.  This manufacturers sells these computers abroad for £1800.  This is an example of      A) a trade-related economy of scale. B) export subsidy. C) dumping. D) a negative tariff.

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Can you answer those questions, please?

46) It costs a computer manufacturer £2000 to produce a personal computer.  This manufacturers sells these computers abroad for £1800.  This is an example of     

  1. A) a trade-related economy of scale. B) export subsidy.
  2. C) dumping. D) a negative tariff.

47) Which of the following is NOT a valid argument for protection?     

  1. A) To keep declining industries going in the long run in order to safeguard jobs
  2. B) To prevent dumping by other countries from giving them an unfair advantage over domestic suppliers
  3. C) To allow infant industries to survive foreign competition
  4. D) To allow older industries with a potential comparative advantage a chance to make significant investments

48) The trade effect of Brexit for the UK is likely to be     

  1. A) a reduction in trade with the EU.
  2. B) either a reduction or an increase in trade between the UK and non-EU countries.
  3. C) a reduction in both inward and outward capital flows between the UK and the EU.
  4. D) A and B
  5. E) A, B and C

49) Which one of the following would appear as a debit item in the UK balance of payments?     

  1. A) Honda invests in a new factory in the UK.
  2. B) American tourists fly BA.
  3. C) A Japanese pension fund buys shares in a British oil company.
  4. D) Foreign tourists spend money in London.
  5. E) A British wine merchant purchases wine from Chile

50) Which of the following policies could a government or central bank pursue to prevent the exchange rate from depreciating?     

 

  1. A) Raise interest rates
  2. B) Increase the money supply through open-market operations
  3. C) Raise taxes
  4. D) Buy foreign currencies on the foreign exchange market
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