Trade in Services Such as Information Technology

question 47

Multiple Choice

Trade in services such as information technology

• A)is like other trade; it creates winners and losers, but the gains for national economies likely outweigh the costs.
• B)creates gains for India's economy, but national welfare losses for the countries that import these services.
• C)make it highly likely that information technology jobs will ultimately disappear in the industrialized countries.
• D)is not perceived as threatening by industrialized countries so is unlikely to lead to any protectionist sentiment or pressures in the way the manufacturing does.

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Definitions:

Nominal GDP

The market value of all finished goods and services produced within a country in a year, measured using current prices without adjusting for inflation.

Real GDP

The total value of all goods and services produced across a nation within a specific year, adjusted for inflation, reflecting the economy's actual growth.

Consumer Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, indicating the level of inflation.

Market Basket

A collection of goods and services used to monitor price changes for consumer expenditures, often used in calculating inflation indices.