Chap018

Chap018 - Chapter 18 - International Trade and the...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 18 - International Trade and the Developing Countries Chapter 18 International Trade and the Developing Countries Multiple Choice Questions FIGURE 1 1. Figure 1's curve 0ABC relating the market value of LDC external debt to the face value of the external debt is known as a. The Laffer curve B . The debt-relief Laffer curve c. The Brady curve d. The Prebisch-Singer curve 2. In Figure 1's curve 0ABC relating the market value of LDC external debt to the face value of the external debt, the range __________ indicates a situation where debt relief or forgiveness for LDCs would reduce the market value of commercial banks' holdings of LDC debt but by less than the amount of debt forgiven. In this range, any one bank __________. A . AB; would not want to forgive debt unless all other banks did also b. AB; would be willing to forgive debt even though other banks did not forgive debt c. BC; would not want to forgive debt unless all other banks did also d. BC; would be willing to forgive debt even though other banks did not forgive debt 18-1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Chapter 18 - International Trade and the Developing Countries 3. In the situation of transfer pricing by a multinational firm in its trade between plants located in less developed countries (LDCs) and industrialized countries (ICs), the firm, other things equal, will, if it wants to shift recorded profits from its LDC plants to its IC plants, record a price on goods sent from LDCs to ICs that is __________ than a comparable free-market price. For goods sent from ICs to the LDCs, the firm will __________ than a comparable free-market price. a. Lower; also want to record a price that is lower
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 5

Chap018 - Chapter 18 - International Trade and the...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online