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INTERNATIONAL TRADE – Academic year 2012/2013

1st test – September26th, 2012  Duration: 40m.  It is not permitted to use any elements of study and to use calculators with graphic memory.  Mobile phones must be turned off and out of sight.

NAME: ____________________________________________ STUDENT NUMBER: ________

Using the matrix below, classify each of the statements as True (T) or False (F). Attention: Each wrong answer has a negative punctuation (-0,625) equal to half of the punctuation of a correct answer (1,25).

1 T/F 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

1) An increase in exports of footwear always means an improvement in the sector’s coverage ratio. 2) A Balassa coefficient equal to 1 means that sector imports are zero. 3) The use of structural coefficients allows comparing international trade structures of different countries. 4) The degree of openness of an economy is greatly influenced by the size of the country, the production structure of the economy and by the presence of multinationals.

5) A country with a degree of openness equal to 50% and a coverage ratio equal to 25%, presents an exporting intensity that is equal to 40%.
6) When the indicator of revealed comparative advantages is negative, this means that the country has

a comparative disadvantage relatively to a reference zone. 7) Relatively to the economy A, it is known that its “coverage ratio”, in 2010 was 40%, while the coverage ratio of sector X was 80%. Thus, we can conclude that the sector X has registered intraindustry trade in 2010.
8) The export intensity reflects the degree of satisfaction of domestic demand through supplies from abroad.

16) Regarding the evolution of the world economy in the last 60 years we can say that one of the most striking features is the expansion of industrialization into new areas. from just its coverage ratio and without taking into account their degree of openness. we have witnessed the globalization of production and the relative increase in importance of inter-industry trade. GOOD LUCK! . 12) Currently. together with the globalization of markets.9) A decrease in the value of the sectoral normalized coverage ratio in a given sector means a loss of competitiveness of that sector. 13) In terms of sectors. 11) Over the past 50 years global exports has grown more rapidly than global production. 14) The strong growth in international trade in last decades was the result solely of world trade liberalization promoted by the GATT / WTO. which has remained stable over the years. services have a significant weight in international trade. 10) We must not draw conclusions about the global competitiveness of the country. 15) The reinforcement of the importance of multinational corporations based in developing countries was particularly evident in the 80’s.