Practise trade theory, protectionism, current-account analysis and exchange rates through calculations, diagrams, data-response questions and policy evaluation.
In which economic context is the term 'protectionism' usually applied?
the protection of consumers against excessive prices
the protection of employees against exploitation by multinational companies
the protection of local producers against foreign competitors
the protection of the foreign exchange rate against currency speculators
C
Which components are included as primary income in the current account of the balance of payments?
trade
in goods
current
transfers
employment
income from
abroad
key
✓ = included
χ= not included
✓
✓
✓
✓
χ
×
χ
✓
χ
χ
χ
✓
D
The following exchange rates were recorded in the foreign exchange market.
Within which range of values should £ 1 exchange for $ ?
£ 1= less than $ 0.50
£1=between $0.50 and $1
£ 1= between $ 1 and $ 1.50
£ 1= more than $ 1.50
D
Why may a government seek to reduce a current account surplus on the balance of payments?
to lower inflation
to lower unemployment
to raise the economic growth rate
to raise the exchange rate
A