The U.S. outsourcing debate reminds us that: a. International ...

[WhattoUnderstand]

The U.S. outsourcing debate reminds us that:
 a. International trade is a zero-sum game.
  b. Outsourcing provides few, if any, benefits to the nation from which outsourcing occurs.
  c. Outsourcing is a way for companies to transform fixed costs into variable costs.
  d. All of these statements are correct.

Question 2

Suppose that Venezuela experiences significant capital outflows after a recent election. If the nation had flexible exchange rates, what effect would these flows have had on Venezuela's overall balance and reserves account?
 a. Overall balance would rise and reserves account would fall.
  b. Overall balance and reserves account would both equal zero.
  c. Overall balance would fall and reserves account would equal zero.
  d. Overall balance would equal zero and reserves account would fall.
  e. Overall balance would fall and reserves account would rise.

[AISCAMPING]

Answer to Question 1

.C

Answer to Question 2

.B