Exam 7: Trade Policies for the Developing Nations

Developing countries sometimes encounter the tariff-escalation policies of advanced countries.This means that advanced countries

Under the Generalized System of Preferences program, the industrialized countries agree to maintain lower tariffs on imports of natural resources and higher tariffs on imports of manufactured goods.

Comparing per-capita incomes of many developing countries and industrial countries, we tend to see

The trade problems of the developing countries have included all of the following EXCEPT

To be considered a good candidate for an export cartel, a commodity should

Developing countries have complained that because their commodity terms of trade have deteriorated in recent decades, they should receive preferential tariff treatment from industrialized countries.

Figure 7.5 Global Market for Tin ​ -Figure 7.5 represents the global market for tin.The initial equilibrium price and quantity is at point A.As a result of an International Tin Agreement, a price range of $3.27-$4.02 is set.As the supply of tin increases from S₀ to S₁, the buffer-stock manager will need to

Stabilizing commodity prices around long-term trends tends to benefit exporters at the expense of importers in markets characterized by

Developing countries have often felt that it is easier to protect their manufacturers, via import-substitution policies, against foreign competitors than to force industrial nations to reduce trade restrictions on products exported by developing countries.

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

During periods of weak demand, OPEC has implemented production (export) quotas to ensure that excess oil supplies be kept off the market.

The ability of OPEC nations to operate as a successful cartel tend to decrease as

In its transition toward capitalism, by the 1990s China permitted free enterprise as well as democracy for its people.

The diagram below illustrates the international tin market. Assume that producing and consuming countries establish an international commodity agreement under which the target price of tin is $5 per pound. Figure 7.1. Defending the Target Price in Face of Changing Demand Conditions ? -Consider Figure 7.1.Suppose the demand for tin decreases from D₀ to D₂.Under a system of export quotas, the tin producers could maintain the target price by

Most developing-nation exports go to industrial nations, while most developing-nation imports originate in industrial nations.

Import substitution policies seek to promote industrialization by establishing barriers to foreign goods to encourage domestic production.

The "newly industrializing countries" of East Asia have emphasized the implementation of import-substitution policies to insulate their industries from international competition.

Which method has NOT generally been used by the international commodity agreements to stabilize commodity prices?

Import substitution emphasizes decreasing reliance on international trade by

Developing countries tend to export ______ because many of them have large endowments of ______.