If the Terms of Trade Increase Then, Ceteris Paribus

question 120

Multiple Choice

If the terms of trade increase then, ceteris paribus:

• A) imports will fall.
• B) imports will rise.
• C) exports will rise.
• D) exports will fall.

Comprehend the impact of currency valuation changes on exports and imports.

Identify the challenges in implementing fiscal policy.

Recognize how monetary policy affects economic investment.

Analyze the characteristics and challenges faced by firms at different stages of the industry life cycle.

---

Definitions:

VALS Framework

A psychographic segmentation tool used to categorize consumers into eight distinct types based on their lifestyles, attitudes, and values.

Psychographic Groups

Segmentation of the market based on the psychological characteristics of consumers, such as lifestyle, values, and beliefs.

Organizational Fit

The degree to which an individual's values, goals, and work style align with the culture and objectives of an organization.

Strategic Fit

The degree to which an organization's strategies align with its external environment and its internal resources and capabilities.