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Free CIMAPRA17-BA1-1 Exam Braindumps (page: 19)

Page 19 of 118
PDF with 468 Questions

A country is a net oil exporter and the demand for oil overseas is price inelastic. A substantial increase in the world price of oil would tend to

  1. Improve the country's balance of payments on current account
  2. Improve the price competitiveness of manufacturing firms in the country
  3. Cause the country's terms of trade to deteriorate
  4. Increase GDP but not GNP in the country

Answer(s): A



A country has a trade deficit. The demand for its imports and exports are both price elastic. All of the following would lead to an a reduction in the country's trade deficit except which one?

  1. A fall in consumer incomes in the country.
  2. An improvement in the country's terms of trade.
  3. A depreciation in the exchange rate for the country's currency.
  4. A rise in the rate of inflation in its trading partners' economies.

Answer(s): B



If a country joined an economic union (for example, the European Union) its business sector could benefit from all of the following except which one?

  1. Higher profit margins due to a reduction in transport costs.
  2. Economies of scale as it gained access to a larger market.
  3. Lower input costs as imports from other member states would become cheaper.
  4. Reduced costs as a result of access to a wider supply of factors of production.

Answer(s): A



As the process of globalization increases, typical businesses will

  1. Depend more and more on their domestic markets.
  2. Have to raise more capital from internal sources.
  3. Have less need to increase their international competitiveness.
  4. Be more and more affected by changes in exchange rates.

Answer(s): D



Page 19 of 118



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