Assuming a Fixed Exchange Rate System,which of the Following Would

question 103

Multiple Choice

Assuming a fixed exchange rate system,which of the following would contribute to a Canadian balance of payments surplus?

• A)The USA increases the tariff on Canadian softwood lumber.
• B)The popularity of Mexican tequila in Canada increases dramatically.
• C)Canada increases its investment in Mexican oil fields.
• D)Canada increases the number of military personal stationed abroad.
• E)The number of Japanese tourists visiting Canada increases greatly.

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Definitions:

UCC Article 2

Part of the Uniform Commercial Code that governs the sale of goods in the United States, providing a framework for transactions and contracts.

CISG

The United Nations Convention on Contracts for the International Sale of Goods (CISG) is an international treaty that establishes a uniform framework for the international sale of goods, providing a set of rules governing the formation of contracts for the sale of goods between parties based in different countries.

Requirements Contract

An agreement in which one party agrees to purchase all of its needs for a specific product or service from the other party.

Starbucks Coffee

An international coffee company and coffeehouse chain based in Seattle, Washington.