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Chapter 2: International Trade Frameworks and Policy

1. Common coinage was developed in ancient Rome to ensure that business transactions could easily be carried out throughout the empire. 2. The feudal system encouraged the development of an…

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1. Common coinage was developed in ancient Rome
to ensure that business transactions could easily be carried out throughout the
empire.

2. The feudal system encouraged the development
of an open-state economy.

3. The Smoot-Hawley Act reduced duties to
increase the volume of imports into the United States.

4. The belief that international trade was a key
to worldwide prosperity led the United States to create a Γ’Β€ΒœPax Americana.Ҁ

5. The MFN is the equal opportunity clause of
international trade.

6. In the sugar and confectionery industries,
tariffs tend to decrease with the degree of processing.

7. The WTO has ceased to exist as a separate institution
and has become part of the GATT.

8. The original goal of the International
Monetary Fund (IMF) was to provide for variable exchange rates between member
countries.

9. The World Bank was initially formed in 1944
to aid countries suffering from the destruction of war.

10. The Transatlantic Business Dialogue (TBD) is a
nongovernmental organization composed of business leaders from Europe and the
United States.

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