International Economic Transactions Quiz

Exporting goods falls under current account transactions, representing the flow of goods and services.

It is a comprehensive record of a country's economic transactions with the world.

A trade surplus occurs when a country exports more goods and services than it imports.

Tariffs are a form of trade barrier, representing taxes imposed on imported goods.

A floating exchange rate is determined by market forces of supply and demand, without government interference.

The IMF issues Special Drawing Rights (SDRs) as a supplement to member countries' reserves.

Foreign direct investment is a capital account transaction involving long-term investments in foreign countries.

The IMF provides financial aid and policy advice to support economic stability in developing nations.

The WTO aims to facilitate international trade by promoting fairness and reducing trade barriers.

Neoliberalism advocates for limited government intervention and promotes free-market principles in international trade.

The trade balance is the net difference between a country's exports and imports of goods.

Quotas, limiting the quantity of imported goods, are a form of non-tariff barrier to trade.

It established a system where currencies were tied to the US dollar, promoting stability in the post-World War II era.

The Marshall Plan offered financial assistance for the reconstruction of war-torn European countries.

Dumping involves selling goods in foreign markets at prices lower than those in the domestic market.

Protectionism supports government intervention to shield domestic industries from foreign competition.

Comparative advantage is the ability to produce goods with a lower opportunity cost than other nations.