Underline the term or phrase that best completes each of the statements below.

1. (Primary, manufactured) products should be exported by poor countries because the demand for these products is high in the world market.

2. Local producers become (inefficient, efficient) if protection is given by the government for extended periods.

3. An efficient producer produces (more, at low cost, for export).

4. A (decreasing, increasing) terms of trade means that the country's earnings from exports is decreasing.

5. When exports are diversified, the country can (earn more, encourage investors).

6. To increase the exports of a country, its currency should be (depreciated, devalued, appreciated).

7. Trade fairs can create (new markets, more demand, more popularity).

8. Rich countries impose (tariffs, quota, trade barriers) to restrict entry of foreign goods in their country.

9. International commodity agreements support farmers through (sure orders, stable prices, less competition)

10. The government should provide (loans, low taxes, incentives) to encourage more exporters.

11. (Manufactured, capital, consumer goods) are ready for consumption.

12. Rich countries practice (protection, economic integration, competition) to strengthen their territory in international trade.

13. Most foreign financial assistance are (genuine, with strings attached, sincere) in helping poor countries.

14. Countries go into trade because it earns (a good international reputation, dollars, new customers).

15. Multinational corporations are not so welcome in poor countries now because of the problem on (reparation, repatriation, investments) of their profits.

16. The IMF lends funds to poor countries to (establish new industries, exploit them, support the value of their currency).

17. If a (foreign aid, grant, loan) is given to Third World Countries, they do not have the obligation to pay the donor country.

18. (Low interest rate, concessional, easy terms) generally characterizes foreign aid.

19. (Commodity cartels, OPEC) is a group of sellers selling oil.

20. Regular flow of aid can be expected from (IMF, World Bank, OPEC, automatic transfers).

Multiple Choice. Encircle the letter that represents the best answer.

1. Man's creativeness and resourcefulness has resulted in: a. all favorable developments b. favorable and unfavorable changes c. unfavorable effects on the environment d. new technology

2. The environment should be protected because: a. we need it to ensure life and food b. it provides us food c. it affects our health d. we want to avoid incurable diseases

3. New technology has brought forth: a. better production methods b. modern war weapons c. industrial accidents d. a and b

4. The oil spill in the Persian Gulf destroyed a big area where food and water could be derived because it was used as: a. protection b. threat c. war strategy d. a protest

5. Pollution is a problem that affects: a. poor countries b. rich countries c. a and b d. dry countries

6. Most countries do not welcome refugees into their country because: a. they are sick b. they create an international concern c. they are so many d. they use up some funds for development

7. When a business is established, it should be concerned with: a. profits b. welfare of the community c. a and b d. good business reputation

8. The best form of help that can be given to the poor is through: a. a job b. housing projects c. regular government allowance d. loans

9. Most rich countries apply protection because: a. they want to sell more b. they do not welcome competition c. they always want to earn more from trade d. they want to ensure the income of their workers

10. Foreign investments are ideal for poor countries when these poor countries: a. earn more b. can earn more taxes c. learn new technology d. b and c

Given below are some conditions that result when a poor country begins to have international economic transactions and relationships. Write an X if the condition is favorable to the country and an O if it is unfavorable. _____ 1. imported, cheap and defective products are sold in the local market _____ 2. more joint ventures are initiated _____ 3. tied aid comes regularly _____ 4. import substitution of luxuries _____ 5. MNCs practice shadow pricing _____ 6. MNCs train local personnel _____ 7. social responsibility becomes a policy _____ 8. trade protection is permanent policy of the government _____ 9. free trade policy on agricultural products _____10. more cartels _____11. more economic integration _____12. import ban on firearms _____13. tariffs on imported products which we can also produce 45 _____14. stricter supervision by a government on MNCs _____15. less automatic transfers _____16. profit and welfare of the community is the concern of local and foreign businesses _____17. poor countries increase trade among each other _____18. local production of products should be 70% imported components _____19. more local subcontractors _____20. increasing terms of trade