国际贸易实务作业

Homework 1

Complete the following. Your answers are due at the beginning of next class.

?Homework requirements

?All work submitted will be:

?Word-processed and printed on white

A4 paper (black ink)

?Double-spaced

?12-point serif font (e.g. Bookman,

Georgia, Times).

?Normal margins

?Turned in at start of class

?You will lose points if you do not follow

these rules

?Do your own work – Do not plagiarize!

1.Answer the following questions. (Minimum 100 words for each question).

1)What is international trade?

2)What benefits does international trade bring about?

3)Why do many countries impose restrictions on trade?

4）Identify some of the organizations involved in international trade and explain them.

2.Choose the right answer from the choices following the question.

1）When a country can produce more of a product with the same resources than another country can, it has _________.

https://www.wendangku.net/doc/f710591371.html,parative advantage

B.absolute advantage

https://www.wendangku.net/doc/f710591371.html,parative disadvantage

D.absolute disadvantage

2）If a country can produce something with a lower opportunity cost than another country, it has_________.

A.absolute disadvantage

B.absolute advantage

https://www.wendangku.net/doc/f710591371.html,parative advantage

https://www.wendangku.net/doc/f710591371.html,parative disadvantage

3)Which of the following statements of WTO is not true?

A.WTO and GATT are the largest current international trade agencies.

B.WTO came after GATT in 1995.

C.WTO helps to solve international trade disputes between countries.

D.WTO is short for World Trade Organization.

4)Which of the following businesses is an example of invisible trade?

A.exporting cars

B.importing steels

C.exporting mobile phones

D.technology license

5)________ is defined as unjustified technical regulations and standards applied to imported products as well as complicated certification and conformity assessment procedure.

A.Quota

B.VERs

C.Tariff

D.TBT

3.Decide whether the following statements are true or false.

1)Trade barriers are good ways to protect the domestic trade industry as well as the international trade. ( )

2)GATT is now replaced by WTO as the main organization in international trade. ( )

3)Visible trade involves the exchange of services between nations, while invisible trade involves the import and export of goods. ( )

4)According to the absolute advantage theory, a country should focus on the production of those goods in which it has an absolute advantage and acquire or purchase from abroad those goods which it cannot produce at home cheaply or efficiently. ( )

5)UCP600 stands for the Uniform Customs and Practice for Documentary Credits. ( )

Homework 1 DUE: 10/17/1410/10/14

4. Case Study: According to the table below, the United Kingdom has an absolute disadvantage in the production of both wheat and cloth with respect to Russia.

Table: Comparative Advantage

RUS UK

Wheat (bushels/man-hour) 6 1

Cloth (yards/man-hour) 4 2

Explain how international trade could benefit both countries. (Minimum 200 – 300 words).