1. The term 'merchandise trade' refers to: a) The flow of physical goods and services across international boundaries. b) The flow of services across national boundaries. The flow of physical goods across national boundaries. d) The value of a country's total exports. 2. Which of the following ways would provide the most complete measure of the degree of globalization in the world economy? a) The size of world GDP. b) The sum of total (world) exports + imports, divided by (world) GDP. c) The flow of physical goods across international boundaries. d) The flow of financial capital across international boundaries. 3. In a country's balance of payments accounts, the current account (CA) consists of: a) The value of goods exported and imported. b) The value of goods and services exported and imported. c) The value of goods and services exported and imported, together with net earnings from overseas assets acquired in the past. d) Transactions in foreign currency