International Economics Assignment-

Part I: Answer ALL of the following Multiple choice questions-

1- A main advantage of specialization results from:

a. Economies of large-scale production

b. The specializing country behaving as a monopoly

c. Smaller production runs resulting in lower unit costs

d. High wages paid to foreign workers

2- International trade in goods and services is sometimes used as a substitute for all of the following except:

a. International movements of capital

b. International movements of labor

c. Domestic production of the same goods and services

d. Domestic production of different goods and services

3- If a nation has an open economy, it means that the nation: 

a. Allows private ownership of capital

b. Has flexible exchange rates

c. Has fixed exchange rates

d. Conducts trade with other countries

4- International trade forces domestic firms to become more competitive in terms of:

a. The introduction of new products

b. Product design and quality

c. Product price

d. All of the above

PART II: Answer all of the following definition questions-

1- What are the challenges of the international trading system?

2- Explain General equilibrium of an Economy with help of a Diagram?

3- Using the following data, calculate the country's nominal and real GDP levels and draw the budget line for example (a).