BCC 106 International Business and Trade

Preliminary Examination

Name: _______________________ Prof: RYAN B. ENDRINAL

Time: 4:00-5:30 PM Date: _____________________

I. TRUE OR FALSE (15 PTS). Write TRUE on the blank space if the statement is true or write FALSE, instead if you
believe otherwise.

______ 1. International trade is at record levels relative to the size of the world economy, thanks to raising costs of
transportation and communications.
______ 2. International trade is an exchange involving a good or service conducted between at least two different
countries.
______ 3. World Trade measures the monetary value of final goods and services that is those that are bough by the final
user produce in a country in a given period of time
______ 4. Small economies tend to spend large amounts on imports because they have large incomes.
______ 5. Indeed, when trade between two countries is either much more or much less than a gravity model predicts,
economists search for the explanation.
______ 6. The large trade of Italy and the Netherlands suggests, in other words, an important role of transport costs and
geography in deter- mining the volume of trade.
______ 7. For the world as a whole, they ship manufactured goods such as automobiles, computers, and clothing to each
other.
______ 8. Service exports include traditional transportation fees charged by airlines and shipping companies, insurance
fees received from foreigners, and spending by foreign tourists.
______ 9. In 2020, Philippines was the world's biggest importer of Nickel Ore and Gold Clad Metals.
______ 10. In 2020, Philippines was the world's biggest exporter of Copra.
______ 11. The gravity model relates the trade between any two countries to the sizes of their economics.
______ 12. Developing countries, in particular, have shifted from being mainly exporters of primary products to being
mainly exporters of manufactured goods.
______ 13. PJEPA also known as Philippine-Japan Economic Partnership Agreement is one of the milestones of
Philippine international Trade. So far it is the first and only bilateral agreement
______ 14. Canada and Belgium are part of a trade agreement with the United States, the North American Free Trade
Agreement, or NAFTA.
______ 15. Mexico plays a special role as host to many U.S.-based corporations. Both countries are located near the
mouth of the Rhine, Western Europe's longest river.

II. ENUMERATION (20 PTS)

Top Three U.S. Trading Partners

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US States
19.
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24.

Canadian Provinces
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29.

Two Major Reasons Why World Gotten Smaller

30.
31.

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PH Imports
32.
33.
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35.

III. ESSAY (20 PTS). Answer the following question correctly. Explain your answer based on your utmost
understanding.

36-40. What is international trade?

41-45. Explain briefly what is an service offshoring. Give an example.

46-50. Given all the changes in world trade since Ricardo’s time, can old ideas still be relevant?

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