GASA01H3 : Journsl8

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cerisemammoth280

15 Apr 2011

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British and american merchants brought opium from bengal to the coast of china, where they sold it to chinese smugglers who distributed the drug in defiance of chinese laws. Emperor sent lin zexu to guangzhou where he quickly arrested chinese dealers and summarily demanded that foreign firms turn over their stocks. When they refused, lin stopped trade altogether and placed the foreign residents under virtual siege, eventually forcing the merchants to surrender their opium to be destroyed. In response, the british government sent expeditionary forces from india which ravaged the chinese coast and dictated the terms of settlement. Treaty of nanking not only opened the way for further opium trade, but ceded territory including. Hong kong, unilaterally fixed chinese tariffs at a low rate, granted extraterritorial rights to foreigners in china which were not offered to chinese abroad, a most favoured nation clause, as well as diplomatic representation. Emperor kangxi: he ascended the throne when 8 years old.

Related Questions

QUESTION 1

If a real asset located in Brazil is sold to someone in the US, the transaction would result in a credit in Brazil's balance of payments.

True

False

6.25 points

QUESTION 2

The balance of payments for a given nation records

only imports and exports of good and servies

only foreign direct investment and portfolio investments between nations

both imports and exporst of good and servieces as well as forein direct investment and portolio investments between nations
QUESTION 36.25 points

Transactions between Canada and the rest of the world are shown below. Use the following information to answer the next four questions.

Canadian citizens receive C$5 million worth of dividends from foreign investments.

Imperial Oil (Canadian firm) invests C$60 million in overseas oil discovery.

Foreign tourists spend C$45 million in Canada.

Canadian government sells C$20 million worth of treasury securities to foreign nations.

Alcan (Canadian firm) sells C$8 million worth of aluminum to US companies.

Canadian government buys C$32 million worth of gold.

Canadian firm buys C$12 million worth of computer components from Sony.

Canada sends C$4 million in aid to Mexico.

Ford spends C$30 million in constructing an assembly plant in Canada.

Find Canada's balance of trade. Enter your final answer in terms of millions of dollars. Do not enter a non-numerical value when inputting your answer.

6.25 points

QUESTION 4

Find the capital account balance (in millions of C$).

		-39
		19
		70

6.25 points

QUESTION 5

Find Canada's current account balance. Enter your final answer in terms of millions of dollars. Do not enter a non-numerical value when inputting your answer.

6.25 points

QUESTION 6

Canada's capital account balance suggests that it is a net supplier of capital to the rest of the world.

True

False

6.25 points

QUESTION 7

Suppose a nation has a current account surplus. This surplus implies

		ation
		ation

		none of the above

6.25 points

QUESTION 8

Suppose that the value of the dollar moves from Â£=$1.5 to Â£=$1.75. What effect would this have on the UK's balance of trade, all else being equal?

		UK
		UK
		UK

6.25 points

QUESTION 9

There is an inverse relationship between the demand for US exports and the US inflation rate.

True

False

6.25 points

QUESTION 10

Transactions between Great Britian and the rest of the world are shown below. Use the following information to answer the next two questions.

British companies sell 50 million pounds worth of bonds to foreigners.

British government sells 20 million pounds of treasury securities to foreigners.

British citizens receive 2 million pounds in interest from foreign investments.

British companies buy 85 million pounds worth of American produced steel.

GlaxoSmithKline (British firm) sells 40 million pounds of pharmaceutical drugs abroad.

British government buys 15 million pounds of gold in FX market.

British bankers invest 12 million pounds in foreign banks.

Find Great Britian's balance of trade. Enter your answer in terms of millions of pounds. Do not use the pound sign or any other non-numerical value when inputting your answer.

and

Transactions between Great Britian and the rest of the world are shown below. Use the following information to answer the next two questions.

British companies sell 50 million pounds worth of bonds to foreigners.

British government sells 20 million pounds of treasury securities to foreigners.

British citizens receive 2 million pounds in interest from foreign investments.

British companies buy 85 million pounds worth of American produced steel.

GlaxoSmithKline (British firm) sells 40 million pounds of pharmaceutical drugs abroad.

British government buys 15 million pounds of gold in FX market.

British bankers invest 12 million pounds in foreign banks.

Find Great Britian's balance of trade. Enter your answer in terms of millions of pounds. Do not use the pound sign or any other non-numerical value when inputting your answer.

Under a system of floating exchange rates, which of the following would not tend to cause an increase in the value of a country's currency?

Question 1 options:

An increased demand for the country's goods.

Offering higher interest rates than other countries.

A downturn in the country's business activity.

A lower rate of inflation than other countries.

Foreign currency is usually referred to as

Question 2 options:

"foreign commodities."

"foreign exchange."

"foreign investment."

"foreign value."

All else held constant, the near-term result of a decrease in the exchange value of country A's currency against country B's currency would most likely

Question 3 options:

increase A's exports to B.

decrease B's trade deficit with A.

increase B's exports to A.

decrease B's imports from A.

When international trade occurs, currency exchange

Question 4 options:

is usually optional and rarely necessary.

can be avoided through careful planning.

is both necessary and unavoidable.

cannot occur unless both parties are coerced.

Question 5 (1 point)

In order to purchase a vacation home in Great Britain, an American buyer would

Question 5 options:

demand British pounds and supply U.S. dollars in the foreign exchange market.

demand U.S. dollars and supply British pounds in the foreign exchange market.

demand and supply British pounds, but not U.S. dollars, in the foreign exchange market.

demand and supply U.S. dollars, but not British pounds, in the foreign exchange market.

Which of the following will lead an American to exchange U.S. dollars for British pounds?

Question 6 options:

Importing a case of British salmon

Purchasing a cottage in the British countryside

Investing in a British manufacturing company

All of the above

Which of the following was established as a result of the Bretton Woods Conference?
I. The International Monetary Fund (IMF)
II. The World Bank
III. The Geneva Conventions

Question 7 options:

I and II only

I and III only

II and III only

I, II, and III

A "weak" (i.e., decreased value) U.S. dollar in relation to other currencies will typically have which of the following effects?

Question 8 options:

U.S. exports to other countries will decline.

Foreign countries will sell more goods in U.S. markets.

The U.S. trade deficit will increase.

None of the above.

Special Drawing Rights (SDRs)

Question 9 options:

constitute an international currency created by the International Monetary Fund.

are considered as "paper gold", used as a substitute for gold in international exchange.

are used as part of the official reserves of central banks to settle international debt.

all of the above.

10.

Which of the following will lead to an inflow of U.S. dollars in the U.S. Balance of Payments account?

Question 10 options:

Exports of U.S. goods and services

Gifts (aid) received by the U.S. from foreign countries

Foreign investment in U.S. Treasury securities

All of the above

11.

If the U.S. sells $150 million of wheat to Brazil in return for $200 million of Brazilian oil, the $50 million difference will necessarily

Question 11 options:

be balanced by other transactions in the U.S. Balance of Payments account.

never by paid back, resulting in a $50 million loss for Brazil.

result in the sale of $50 million more wheat to Brazil later on.

obligate the U.S. to provide $50 million in foreign aid to Brazil.

12.

An inflow of U.S. dollars to the U.S. Balance of Payments account will occur when

Question 12 options:

	the U.S. buys foreign currency in international markets.
	the U.S. donates foreign aid to other countries.
	Americans make investments in foreign assets.
	the U.S. exports merchandise to foreign countries.

Save

13.

A demand for foreign goods

Question 13 options:

	is a demand for foreign currency.
	requires supplying domestic currency.
	both of the above.
	none of the above.

With the heavy focus on trade with China, it may be surprising to discover that Canada is the USA's largest trading partner. Perhaps it is not the amount of trade between the US and China that is such a great concern as much as the growth of the trade, the corresponding imbalances, and China's currency valuations.

The yuan renminbi is the official currency of China. It has been historically fixed and controlled by the Chinese government, but that may be changing. As China becomes a greater global exporter and economic powerhouse, critics are claiming that the currency is being undervalued and manipulated in an attempt to protect domestic markets. There are additional levels of complexity impacting China as the nation must deal not only with the economic competition but also internal political and social pressures. As China continues to loosen capital controls, there is fear that the government may lose control of inflation and interest rates, thereby causing a great deal of labor and social unrest, while negatively impacting China's competitive advantages. There are currently platforms in place to increase the circulation of the yuan, but those platforms are currently limited and severely restricted.

China is a leader in international world trade, a major exporter, and currently holds the largest foreign exchange reserve in the world. The nation has one of the highest GDPs in the world and is increasing its economic power. Is it fair for China to fix its currency by undervaluing it on the market? How does keeping its exchange rate undervalued give it a favorable position in international trade? What about from the viewpoint of consumers?

Why is the Chinese government hesitant to open the yuan to market forces to determine its value (floating exchange rate) inside and outside of China?

We often talk about manufacturing and goods related to trade with China. What information can you find on trade in services between the two countries?

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GASA01H3 : Journsl8

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