Question 1

The imperfect capital market justification for infant industry promotion

Accepted Answer

A) assumes that new industries will tend to have low profits. 
B) assumes that infant industries will soon mature. 
C) assumes that infant industries will be in products of comparative advantage. 
D) assumes that banks can allocate resources efficiently. 
E) assumes that developing country will reward the donor country. 
A) assumes that new industries will tend to have low profits. 
B) assumes that infant industries will soon mature. 
C) assumes that infant industries will be in products of comparative advantage. 
D) assumes that banks can allocate resources efficiently. 
E) assumes that developing country will reward the donor country.

Question 2

Historically those few developing countries which have succeeded in significantly raising their per-capita income levels

Accepted Answer

A) did not accomplish this with import-substituting industrialization. 
B) did accomplish this with import-substituting industrialization. 
C) tended to provide heavy protection to domestic industrial sectors. 
D) favored industrial to agricultural or service sectors. 
E) did so to the detriment of their nearest neighbors. 
A) did not accomplish this with import-substituting industrialization. 
B) did accomplish this with import-substituting industrialization. 
C) tended to provide heavy protection to domestic industrial sectors. 
D) favored industrial to agricultural or service sectors. 
E) did so to the detriment of their nearest neighbors.

Question 3

All of the following nations EXCEPT ________ have recently utilized export-led growth policies.

Accepted Answer

A) Hong Kong 
B) South Korea 
C) Argentina 
D) Singapore 
E) Taiwan 
A) Hong Kong 
B) South Korea 
C) Argentina 
D) Singapore 
E) Taiwan

Question 4

The HPAE (High Performance Asian Economies)countries

Accepted Answer

A) have all consistently supported free trade policies. 
B) have all consistently maintained import-substitution policies. 
C) have all consistently maintained non-biased efficient free capital markets. 
D) have all maintained openness to international trade. 
E) have all outperformed the U.S. 
A) have all consistently supported free trade policies. 
B) have all consistently maintained import-substitution policies. 
C) have all consistently maintained non-biased efficient free capital markets. 
D) have all maintained openness to international trade. 
E) have all outperformed the U.S.

Question 5

Which of the following could explain why the terms of trade of developing countries might deteriorate over time?

Accepted Answer

A) Developing country exports consist mainly of manufactured goods. 
B) Developing country exports consist mainly of primary products. 
C) Commodity export prices are determined in highly competitive markets. 
D) Commodity export prices are solely determined by developing countries. 
E) Developing country exports are too diverse. 
A) Developing country exports consist mainly of manufactured goods. 
B) Developing country exports consist mainly of primary products. 
C) Commodity export prices are determined in highly competitive markets. 
D) Commodity export prices are solely determined by developing countries. 
E) Developing country exports are too diverse.

Question 6

Sophisticated theoretical arguments supporting import-substitution policies include

Accepted Answer

A) terms of trade effects. 
B) scale economy arguments. 
C) learning curve considerations. 
D) the problem of appropriability. 
E) domestic market failure arguments. 
A) terms of trade effects. 
B) scale economy arguments. 
C) learning curve considerations. 
D) the problem of appropriability. 
E) domestic market failure arguments.

Question 7

Which industrialization policy used by developing countries places emphasis on the comparative advantage principle as a guide to resource allocation?

Accepted Answer

A) export promotion 
B) import substitution 
C) international commodity agreements 
D) Infant Industry promotion 
E) intra-industry trade practice 
A) export promotion 
B) import substitution 
C) international commodity agreements 
D) Infant Industry promotion 
E) intra-industry trade practice

Question 8

Statistical evidence suggests that

Accepted Answer

A) free trade policies promote economic growth more effectively than do import substitution policies. 
B) import substituting policies tend to promote effective exploitation of scale economies. 
C) import substitution tends to lead to relatively low effective rates of protection. 
D) import substitution is to this day the preferred growth strategy promoted by the World Bank. 
E) import substitution proved to be the most effective aid for developing countries before 1970. 
A) free trade policies promote economic growth more effectively than do import substitution policies. 
B) import substituting policies tend to promote effective exploitation of scale economies. 
C) import substitution tends to lead to relatively low effective rates of protection. 
D) import substitution is to this day the preferred growth strategy promoted by the World Bank. 
E) import substitution proved to be the most effective aid for developing countries before 1970.

Question 9

-Refer to above figure.If OmL1 workers are employed in manufacturing then what is the marginal productivity of labor in agriculture?

Accepted Answer

The answer of  
-Refer to above figure.If OmL1 workers...

Question 10

It is argued that import substitution is a misguided trade policy if the intent is to promote long-term economic growth.Explain the reasons underlying this argument.

Accepted Answer

Import substitution promotes that econom

Question 11

-Refer to above figure.If manufacturing labor were to increase to OmL2,how much value would the economy as a whole gain?

Accepted Answer

The answer of  
-Refer to above figure.If manufacturing labor...

Question 12

The remarkable success of the HPAEs proves that

Accepted Answer

A) trade policy is the key to successful economic growth. 
B) trade policy is irrelevant to successful economic growth. 
C) high educational standards is the key to successful economic growth. 
D) dual economies must suffer economic stagnation. 
E) trade policy can lead to a higher standard of living for developing countries. 
A) trade policy is the key to successful economic growth. 
B) trade policy is irrelevant to successful economic growth. 
C) high educational standards is the key to successful economic growth. 
D) dual economies must suffer economic stagnation. 
E) trade policy can lead to a higher standard of living for developing countries.

Question 13

The disappointment with import-substitution policies is in part because

Accepted Answer

A) of the rapid and continuous growth record of South American countries. 
B) many countries pursuing this strategy experienced stagnation in their growth. 
C) this policy is inconsistent with sophisticated economic growth models. 
D) this policy tended to create world-class industrial competitors. 
E) of the financial investment lost by the U.S. 
A) of the rapid and continuous growth record of South American countries. 
B) many countries pursuing this strategy experienced stagnation in their growth. 
C) this policy is inconsistent with sophisticated economic growth models. 
D) this policy tended to create world-class industrial competitors. 
E) of the financial investment lost by the U.S.

The imperfect capital market justification for infant industry promotion

Historically those few developing countries which have succeeded in significantly raising their per-capita income levels

All of the following nations EXCEPT ________ have recently utilized export-led growth policies.

The HPAE (High Performance Asian Economies)countries

Which of the following could explain why the terms of trade of developing countries might deteriorate over time?

Sophisticated theoretical arguments supporting import-substitution policies include

Which industrialization policy used by developing countries places emphasis on the comparative advantage principle as a guide to resource allocation?

Statistical evidence suggests that

-Refer to above figure.If OmL1 workers are employed in manufacturing then what is the marginal productivity of labor in agriculture?

It is argued that import substitution is a misguided trade policy if the intent is to promote long-term economic growth.Explain the reasons underlying this argument.

-Refer to above figure.If manufacturing labor were to increase to OmL2,how much value would the economy as a whole gain?

The remarkable success of the HPAEs proves that

The disappointment with import-substitution policies is in part because

Introduction

World Trade: an Overview

Labor Productivity and Comparative Advantage: the Ricardian Model

Specific Factors and Income Distribution

Resources and Trade: the Heckscher-Ohlin Model

The Standard Trade Model

External Economies of Scale and the International Location of Production

Firms in the Global Economy: Export Decisions, outsourcing, and Multinational Enterprises

The Instruments of Trade Policy

The Political Economy of Trade Policy

Controversies in Trade Policy

National Income Accounting and the Balance of Payments

Exchange Rates and the Foreign Exchange Market: an Asset Approach

Money, interest Rates, and Exchange Rates

Price Levels and the Exchange Rate in the Long Run

Output and the Exchange Rate in the Short Run

Fixed Exchange Rates and Foreign Exchange Intervention

International Monetary Systems: an Historical Overview

Financial Globalization: Opportunity and Crisis

Optimum Currency Areas and the Euro

Developing Countries: Growth, crisis, and Reform

Filters

Exam 11: Trade Policy in Developing Countries

The imperfect capital market justification for infant industry promotion

Historically those few developing countries which have succeeded in significantly raising their per-capita income levels

All of the following nations EXCEPT ________ have recently utilized export-led growth policies.

The HPAE (High Performance Asian Economies)countries

Which of the following could explain why the terms of trade of developing countries might deteriorate over time?

Sophisticated theoretical arguments supporting import-substitution policies include

Which industrialization policy used by developing countries places emphasis on the comparative advantage principle as a guide to resource allocation?

Statistical evidence suggests that

-Refer to above figure.If OmL1 workers are employed in manufacturing then what is the marginal productivity of labor in agriculture?

It is argued that import substitution is a misguided trade policy if the intent is to promote long-term economic growth.Explain the reasons underlying this argument.

-Refer to above figure.If manufacturing labor were to increase to OmL2,how much value would the economy as a whole gain?

The remarkable success of the HPAEs proves that

The disappointment with import-substitution policies is in part because

Introduction

World Trade: an Overview

Labor Productivity and Comparative Advantage: the Ricardian Model

Specific Factors and Income Distribution

Resources and Trade: the Heckscher-Ohlin Model

The Standard Trade Model

External Economies of Scale and the International Location of Production

Firms in the Global Economy: Export Decisions, outsourcing, and Multinational Enterprises

The Instruments of Trade Policy

The Political Economy of Trade Policy

Controversies in Trade Policy

National Income Accounting and the Balance of Payments

Exchange Rates and the Foreign Exchange Market: an Asset Approach

Money, interest Rates, and Exchange Rates

Price Levels and the Exchange Rate in the Long Run

Output and the Exchange Rate in the Short Run

Fixed Exchange Rates and Foreign Exchange Intervention

International Monetary Systems: an Historical Overview

Financial Globalization: Opportunity and Crisis

Optimum Currency Areas and the Euro

Developing Countries: Growth, crisis, and Reform

Filters