Asked by Yahya Naqvi on May 06, 2024
Verified
Which statement is false?
A) If we restrict our imports,our exports will decline.
B) Trade restrictions cause economic inefficiency.
C) International finance is based on the gold standard.
D) None of the statements is false.
International Finance
The study and management of financial transactions and investments that cross national borders, including foreign exchange markets and international banking.
Trade Restrictions
Measures implemented by governments to regulate international trade, including tariffs, quotas, and import bans, aimed at protecting domestic industries.
Gold Standard
A financial structure in which gold directly determines the value of a country's paper currency.
- Evaluate the implications of tariffs, quotas, and different trade barriers on global trade and domestic market environments.
- Analyze the financial reasons in favor of and against free trade and protectionism.
Verified Answer
MV
Meher VishnuMay 11, 2024
Final Answer :
C
Explanation :
International finance is not based on the gold standard anymore. The gold standard was abandoned in the 1930s and replaced by a system of floating exchange rates.
Learning Objectives
- Evaluate the implications of tariffs, quotas, and different trade barriers on global trade and domestic market environments.
- Analyze the financial reasons in favor of and against free trade and protectionism.