1. With respect to the Balance of Payments accounts, can you (a) name three items in
the current account, (b) name four items in the financial account and (c) explain the types of
items that go into the capital account?
o Tracks the flow
First Exam Essay Topics
a. Shallow integration: the elimination or reduction of tariffs and quotas that restrict the flow of
goods across borders
Deep integration: economic integration beyond elimination/reduction of tariffs and quotas.
What is ISI? How did ISI (to include oil discoveries in Mexico) turn high economic
growth in Mexico, from the 1950s until around 1980, into the debt crises or "lost
decade" that began in 1982? What did Mexico do to resolve the crises?
1. Import substituti
Villanova School of Business
Department of Economics
Study Guide for
International Economics: Part II
1. Last year, gross private domestic investment ( I ) in the US economy was $12