Exam 7: Trade Policies for the Developing Nations

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 buffer stock system, the buffer-stock manager could maintain the target price by

Of the manufactured goods exported by developing countries, most of them are ______ and include ______ of technology in their production.

For Saudi Arabia, oil exports constitute about ______ of its export revenue.

Hong Kong and South Korea are examples of developing nations that have recently pursued the industrialization policy of

International commodity agreements do NOT

The characteristics that have underlaid the economic success of the "high-performing Asian Economies" have included all of the following EXCEPT

During periods of falling demand for coffee, an International Commodity Agreement could offset downward pressure on price by implementing policies to increase the supply of coffee.

Which of the following has resulted in the economic instability of developing countries?

To help developing countries expand their industrial base, some industrial countries have reduced tariffs on designated manufactured imports from developing countries below the levels applied to imports from industrial countries.This scheme is referred to as

East Asian economies have performed well by

What are some of the growth strategies that have been employed by the developing nations? How successful are these strategies?

East Asian economies started enacting export-push strategies

In 1999 the United States revoked the normal-trade-relations (most-favored-nation) status it provided China in retaliation for China's suppression of human rights.

Figure 7.4 Global Market for Tin ​ -Consider the global market for tin represented by Figure 7.4.Initially equilibrium is at point A with a market price of $3.50 per pound and 50,000 pounds.In order to keep tin price relatively stable, an International Tin Agreement has set a price floor of $3.27 and a ceiling of $4.02.As the demand for tin increases to D₁, how will the buffer-stock manager need to respond?

Once a cartel establishes its profit-maximizing price,

Assuming identical cost and demand curves, OPEC as a cartel will, in comparison to a competitive industry,

A multilateral contract stipulates the maximum price at which importing nations will purchase guaranteed quantities from producing nations and the minimum price at which producing nations will sell guaranteed amounts to importing nations.

To prevent the market price of tin from falling below the target price, the manager of a buffer stock would purchase any excess supply of tin that exists at the target price.

The recent technological advances in oil production, such as hydraulic fracturing and horizontal drilling, have threatened the market share and profitability of the OPEC nations.

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 decreases from S₀ to S₂.Under a buffer stock system, the buffer-stock manager could maintain the target price by