All of the Following Would Be Potential Problems If Developing

question 18

Multiple Choice

All of the following would be potential problems if developing nations around the world emphasized export promotion except

• A)industrial nations may be unable to absorb the exports of many newly industrializing nations.
• B)it would be much harder to emphasize exports under the WTO framework if the emphasis in exports requires some kind of subsidies.
• C)export growth may not add to GDP if it crowds out growth in output of goods for domestic consumption.
• D)current research has clearly established that there is no causal connection between exports and faster economic growth.

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Definitions:

Eurobond

A bond issued in a currency other than the currency of the country or market in which it is issued.

International Bond

A debt investment that is issued in a country by a non-domestic entity, potentially denominated in a foreign currency, and sold to investors from around the world.

Purchasing Power Parity

Purchasing power parity is an economic theory that compares different countries' currencies through a "basket of goods" approach, assuming that exchange rates should adjust so that identical goods cost the same in different countries.

Exchange Rate

The price of one country's currency expressed in terms of another country's currency, facilitating international trade and finance.