International Economic

Question 1

problems of economic interaction between among nation

Answer 1

international economic

Question 2

focus on monetary side of international economic

Answer 2

international finance

Question 3

exchange of capital goods and services across international borders

Answer 3

international trade

Question 4

sale of goods and services abroad

Answer 4

export

Question 5

purchase of goods and services abroad

Answer 5

import

Question 6

value of goods and services sold abroad

Answer 6

net export

Question 7

value of using resources measured in terms of value and of best alternative

Answer 7

opportunity cost

Question 8

country can produce a goods and services at lower opportunity cost

Answer 8

comparative advantage

Question 9

nation is sole producer of an item

Answer 9

absolute advantage

Question 10

international trade gives room to competitor

Answer 10

competition

Question 11

foreign goods compete with the local good in the market

Answer 11

competition

Question 12

borrow from capital rich country

Answer 12

access to capital / greater return on capital

Question 13

international trade increase economic and social development of underdeveloped and developing countries

Answer 13

economic and social development

Question 14

social expectation manner and methods of doing business

Answer 14

cultural difference

Question 15

creates financial complication because currency are not equal value

Answer 15

currency problem

Question 16

countries often limit international trade by legal means

Answer 16

legal protection

Question 17

protect tariff and quotas encourage the growth of domestic industry

Answer 17

legal protection

Question 18

these are often unpredictable terrorism and foreign tax

Answer 18

foreign political climates

Question 19

create ethical problem

Answer 19

foreign business climate and methods