Exam 7: Trade Policies for the Developing Nations

Developing countries that emphasize production in raw materials and agricultural goods may realize a long-run decline in their international terms of trade as the result of

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

If the supply schedule for tin is relatively inelastic to price changes,a decrease in the demand schedule for tin will cause a:

The common agricultural policy of the European Union supports its farmers through a system of

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

All welfare effects of a regional trading agreement are static.

By the mid-1990s,the European Union had essentially achieved the common market stage of economic integration.

If a customs union included all of the countries in the world,there could exist only trade creation,not trade diversion.

Under the Generalized System of Preferences program,the major industrial countries agree to temporarily reduce tariffs on designated imports from other industrial countries.

In the United States,which group was most likely to be hurt by the North American Free Trade Agreement?

The mission of the ______ is to make loans to developing countries aimed toward poverty reduction and economic development,including schools,hospitals,roads,and bridges

A common market

Rather than conduct massive stabilization operations,buffer stock officials will periodically revise target prices should they move out of line with long-term price trends.

According to the Generalized System of Preferences of the United States,exports from developing countries face higher import tariff rates than exports from industrialized countries.

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

Outward-oriented growth strategies place main emphasis on

Suppose that steel from Japan faces a 20 percent tariff in France and a 25 percent tariff in Italy,while France and Italy maintain free trade between each other.France and Italy are therefore part of a (an):

An optimal currency area is a region in which it is economically preferable to have a single official currency rather than multiple official currencies.

Export-led growth industrialization suffers a major problem: it depends on the willingness and ability of foreign nations to absorb the goods exported by the country pursuing such a policy.

Developing countries often argue that their