Exam 7: Trade Policies for the Developing Nations

Import substitution decreases reliance on international trade by fostering export-competing industries.

The advanced (industrial) countries of the world tend to be characterized by all of the following EXCEPT

Import substitution policies make use of

Figure 7.3. World Oil Market -Consider Figure 7.3.Under a profit-maximizing cartel, producers realize

Which trade strategy have developing countries used to restrict imports of manufactured goods so that the domestic market is preserved for home producers, who thus can take over markets already established in the country?

Among the economic problems facing developing countries have been low dependence on primary-product exports, unstable export markets, and worsening terms of trade.

Figure 7.3. World Oil Market -Consider Figure 7.3.Under competitive conditions, the quantity of oil produced equals

The diagram below illustrates the international tin market. Assume that the producing and consuming countries establish an international commodity agreement under which the target price of tin is $5 per pound. Figure 7.2. Defending the Target Price in Face of Changing Supply Conditions ? -Consider Figure 7.2.Suppose the supply of tin increases from S₀ to S₁.Under a buffer stock system, the buffer-stock manager could maintain the target price by

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

Recent trade patterns indicate that most of world trade occurs

The United Nation Conference on Trade and Development in 1964 was successful in convincing developing countries to switch from export-led industrialization to import-substitution industrialization.

A multilateral contract specifies the maximum price at which exporting countries agree to sell a product and the minimum price at which importing countries agree to buy a product.

Evidence shows that the largest amount of trade occurs between developing countries.

The mission of the ______ is to provide financial assistance to developing countries facing a balance of payments deficits and a financial crisis.

Which of the following is NOT a major factor that encourages developing nations to form international commodity agreements?

To help developing nations strengthen their international competitiveness, many industrial nations have granted nonreciprocal tariff reductions to developing nations under the

Import substitution policy tends to be anti-trade, while outward looking development is pro-trade.

In recent decades, the East Asian "newly industrializing countries" have pursued export-led growth (outward orientation) as an industrialization strategy.

The so-called Four Tigers include Australia, South Korea, Taiwan, and Hong Kong.

Describe the flying-geese pattern of economic growth.What countries have pursued this strategy?