Relative to countries with low ratios of exports to

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30. Relative to countries with low ratios of exports to gross domestic product, countries having high export to gross domestic product ratios are __________ vulnerable to changes in the world market. a. Less b. More c. Equally d. Any of the above TRUE-FALSE QUESTIONS T F 1. The two most important trading partners of the United States are Canada and Mexico. T F 2. The United States exports a larger percentage of its gross domestic product than Japan, Germany, and Canada. T F 3. Opening the economy to international trade tends to lessen inflationary pressures at home. T F 4. The benefits of international trade accrue in the forms of lower domestic prices, development of more efficient methods and new products, and a greater range of consumption choices. T F 5. In an open trading system, a country will import those commodities that it produces at relatively low cost while exporting commodities that can be produced at relatively high cost. T F 6. Although free trade provides benefits for consumers, it is often argued that import protection should be provided to domestic producers of strategic goods and materials vital to the nation’s security. T F 7. In the long run, competitiveness depends on an industry’s natural resources, its stock of machinery and equipment, and the skill of its workers in creating goods that people want to buy. T F 8. If a nation has an open economy, it means that the nation allows private ownership of capital. T F 9. Increased foreign competition tends to increase profits of domestic import-competing companies. T F 10. Restrictive trade policies have resulted in U.S. producers of minerals and metals supplying all of the U.S. consumers’ needs.
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