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B doubling distance between countries decreases trade

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b.Doubling distance between countries decreases trade by about half.c.Trade flows are proportional to the economic size of the importing country, but not the exportingcountry.d.There remains a significant border effect after adjusting for distance and size of the economiesinvolved.e.Distance effects on trade in goods were important before the 1990s but have since been eliminatedby the “communication revolution” (fax, internet, teleconferencing)f.Trade flows between two countries are not affected by the size (GDP) of other trading partners.
COMM 498Sauder School of BusinessUniversity of British ColumbiaSecond Term3)Which of the following is a positive entry in the U.S. current account?
4)MFN tariffs in Canada are positive for chocolate bars, cars, and clothes. Which of thefollowing situations would allow for tariff free imports into Canada?
Part II.Short essays. Choose four of the following five statements and determine whether each is true,false, or uncertain and briefly explain your answer. Your mark will mainly depend on the quality of yourexplanation. For some questions, I have included background information. In writing your answer youshould assume that statements in italics are factually correct1)“When agreeing on the terms for an export to an unfamiliar foreign buyer, the exporter shouldinsist that the deal is carried out on ‘open account,’ and that the price should be quoted inhome (export-country) currency.”

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Term
Summer
Professor
Wosk
Tags
International Trade, Sauder School of Business

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