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Unformatted text preview: Name E CONOMICS 452 Q UIZ 2 A Going Under The Economist 03-26-2009 & The Fragile Web of Foreign Trade The Economist 05-28-2009 1.The WTO predicts that the volume of global trade, which grew by 6% in 2007 and 2% in 2008, will fall by ____________ how much this year? Is the drop expected to be worse for rich or poor countries? What is a clear reason, other than shortfall in trade finance, why global trade is now declining? 2. What year was the last time global trade contracted? Was the decline large or small back then? 3. In the boom years between 1998 and 2008, trade volumes grew at 5.7% per year. How did this growth in trade volumes compare to the growth rate of world output over that period? 4. Economists believe that an additional reason for these sharp and coordinated drops lies in a fundamental change in the nature of global trade over the past three decades. Describe the change and why it led trade to grow much faster than it would have otherwise and how the...
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- Fall '06