Question 1

International commodity agreements do not:

Accepted Answer

A)  Consist of consuming and producing nations who desire market stability 
B)  Levy export cutbacks so as to offset rising commodity prices 
C)  Utilize buffer stocks to generate commodity price stability 
D)  Increase the supply of commodities to prevent rising prices 
A)  Consist of consuming and producing nations who desire market stability 
B)  Levy export cutbacks so as to offset rising commodity prices 
C)  Utilize buffer stocks to generate commodity price stability 
D)  Increase the supply of commodities to prevent rising prices

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A)  High rates of domestic investment 
B)  Diseconomies of scale occurring at low output levels 
C)  Large endowments of human capital 
D)  High levels of labor productivity 
A)  High rates of domestic investment 
B)  Diseconomies of scale occurring at low output levels 
C)  Large endowments of human capital 
D)  High levels of labor productivity

Question 4

Figure 8.1 depicts the supply and demand schedules of calculators for Greece,a "small" country that is unable to affect the world price.Greece's supply and demand schedules of calculators are respectively depicted by SG and DG.Assume that Greece imports calculators from either Germany or France.Suppose Germany is the world's low-cost producer who can supply calculators to Greece at $20 per unit,while France can supply calculators at $30 per unit.
Figure 8.1.Effects of a Customs Union
  
-Consider to Figure 8.1.Assume Greece levies a per-unit tariff of $20 on imports from both Germany and France.??Greece will import:

Accepted Answer

A)  1 calculator from Germany 
B)  1 calculator from France 
C)  3 calculators from Germany 
D)  3 calculators from France 
A)  1 calculator from Germany 
B)  1 calculator from France 
C)  3 calculators from Germany 
D)  3 calculators from France

Question 5

Challenges for China's economy include

Accepted Answer

A)  the privatization of China's industries 
B)  rising labor costs that detract from the competitiveness of China's exporting companies 
C)  the deterioration of China's environment 
D)  all of the above 
A)  the privatization of China's industries 
B)  rising labor costs that detract from the competitiveness of China's exporting companies 
C)  the deterioration of China's environment 
D)  all of the above

Question 6

For countries forming a customs union,the trade-creation effect represents a welfare loss and the trade-diversion effect represents a welfare gain.

Accepted Answer

A) True 
 B)False

Question 7

Critics of the North American Free Trade Agreement maintained that it would result in manufacturing firms fleeing Mexico's stringent pollution-control policies and relocating in the United States and Canada.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A)  a fall in the prices of natural resources of developing countries 
B)  a rise in the prices of natural resources of developing countries 
C)  a rise in the labor productivity of developing countries 
D)  a rise in the rate of saving of developing countries 
A)  a fall in the prices of natural resources of developing countries 
B)  a rise in the prices of natural resources of developing countries 
C)  a rise in the labor productivity of developing countries 
D)  a rise in the rate of saving of developing countries

Question 9

If several countries form a regional trading pact that removes tariffs between the members,implements a common external tariff structure,permits free mobility of factors of production,and integrates fiscal policies,they have formed a

Accepted Answer

A)  customs union 
B)  economic union 
C)  free trade area 
D)  common market 
A)  customs union 
B)  economic union 
C)  free trade area 
D)  common market

Question 10

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?

Accepted Answer

A)  International commodity agreement 
B)  Export promotion 
C)  Multilateral contract 
D)  Import substitution 
A)  International commodity agreement 
B)  Export promotion 
C)  Multilateral contract 
D)  Import substitution

Question 11

The figure below depicts the steel market for Portugal,a small nation that is unable to affect the world price.Assume that Germany and France can supply steel to Portugal at a price of $200 and $300 respectively.
Figure 8.2.Portugal's Steel Market
  
-Consider Figure 8.2.If Portugal levies a 100 percent nondiscriminatory tariff on its steel imports,it will purchase 5 tons of steel from France at a price of $500 per ton.

Accepted Answer

A) True 
 B)False

Question 12

Figure 8.1 depicts the supply and demand schedules of calculators for Greece,a "small" country that is unable to affect the world price.Greece's supply and demand schedules of calculators are respectively depicted by SG and DG.Assume that Greece imports calculators from either Germany or France.Suppose Germany is the world's low-cost producer who can supply calculators to Greece at $20 per unit,while France can supply calculators at $30 per unit.
Figure 8.1.Effects of a Customs Union
  
-Consider Figure 8.1.Assume Greece levies a per-unit tariff of $20 on imports from both Germany and France.??The deadweight welfare loss to Greece,resulting from the $20 tariff,equals:

Accepted Answer

A)  $20 
B)  $40 
C)  $60 
D)  $80 
A)  $20 
B)  $40 
C)  $60 
D)  $80

Question 13

The figure below depicts the steel market for Portugal,a small nation that is unable to affect the world price.Assume that Germany and France can supply steel to Portugal at a price of $200 and $300 respectively.
Figure 8.2.Portugal's Steel Market
  
-Consider Figure 8.2.With free trade,Portugal will import 25 tons of steel from Germany at a price of $200 per ton.

Accepted Answer

A) True 
 B)False

Question 14

A primary goal of international commodity agreements has been the:

Accepted Answer

A)  Maximization of members' revenues via export taxes 
B)  Nationalization of corporations operating in member nations 
C)  Adoption of tariff protection against industrialized nation sellers 
D)  Moderation of commodity price fluctuations when markets are unstable 
A)  Maximization of members' revenues via export taxes 
B)  Nationalization of corporations operating in member nations 
C)  Adoption of tariff protection against industrialized nation sellers 
D)  Moderation of commodity price fluctuations when markets are unstable

Question 15

Which terms-of-trade concept emphasizes a nation's capacity to import?

Accepted Answer

A)  Income terms of trade 
B)  Commodity terms of trade 
C)  Barter terms of trade 
D)  Price terms of trade 
A)  Income terms of trade 
B)  Commodity terms of trade 
C)  Barter terms of trade 
D)  Price terms of trade

Question 16

The North American Free-Trade Agreement was most strongly opposed by U.S.:

Accepted Answer

A)  Electronics manufacturers 
B)  Labor unions 
C)  Commercial banks 
D)  Engineering companies 
A)  Electronics manufacturers 
B)  Labor unions 
C)  Commercial banks 
D)  Engineering companies

Question 17

In the United States,the proposed North American Free Trade Agreement was generally supported by:

Accepted Answer

A)  Labor unions 
B)  Electronics firms 
C)  Environmentalists 
D)  Citrus producers 
A)  Labor unions 
B)  Electronics firms 
C)  Environmentalists 
D)  Citrus producers

Question 18

Import substitution emphasizes decreasing reliance on international trade by

Accepted Answer

A)  developing import-competing industries 
B)  adopting free trade policies 
C)  subsidizing efficient exporting industries 
D)  reducing import tariffs on labor-intensive goods 
A)  developing import-competing industries 
B)  adopting free trade policies 
C)  subsidizing efficient exporting industries 
D)  reducing import tariffs on labor-intensive goods

Question 19

The figure below depicts the steel market for Portugal,a small nation that is unable to affect the world price.Assume that Germany and France can supply steel to Portugal at a price of $200 and $300 respectively.
Figure 8.2.Portugal's Steel Market
  
-Consider Figure 8.2.If Portugal had formed a customs union with Germany,Portugal's welfare would have decreased by $500.

Accepted Answer

A) True 
 B)False

Question 20

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:

Accepted Answer

A)  Generalized system of preferences 
B)  Export-led growth 
C)  International commodity agreement 
D)  Reciprocal trade agreement 
A)  Generalized system of preferences 
B)  Export-led growth 
C)  International commodity agreement 
D)  Reciprocal trade agreement

International commodity agreements do not:

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

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

Challenges for China's economy include

For countries forming a customs union,the trade-creation effect represents a welfare loss and the trade-diversion effect represents a welfare gain.

Critics of the North American Free Trade Agreement maintained that it would result in manufacturing firms fleeing Mexico's stringent pollution-control policies and relocating in the United States and Canada.

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

If several countries form a regional trading pact that removes tariffs between the members,implements a common external tariff structure,permits free mobility of factors of production,and integrates fiscal policies,they have formed a

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?

A primary goal of international commodity agreements has been the:

Which terms-of-trade concept emphasizes a nation's capacity to import?

The North American Free-Trade Agreement was most strongly opposed by U.S.:

In the United States,the proposed North American Free Trade Agreement was generally supported by:

Import substitution emphasizes decreasing reliance on international trade by

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:

The International Economy and Globalization

Foundations of Modern Trade Theory: Comparative Advantage

Sources of Comparative Advantage

Tariffs

Nontariff Trade Barriers

Trade Regulations and Industrial Policies

Regional Trading Arrangements

International Factor Movements and Multinational Enterprises

The Balance-of-payments

Foreign Exchange

Exchange Rate Determination

Mechanisms of International Adjustment

Exchange Rate Adjustments and the Balance-of-payments

Exchange Rate Systems and Currency Crises

Macroeconomic Policy in an Open-economy

International Banking: Reserves, Debt, and Risk

Filters

Exam 7: Trade Policies for the Developing Nations

International commodity agreements do not:

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

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

Challenges for China's economy include

For countries forming a customs union,the trade-creation effect represents a welfare loss and the trade-diversion effect represents a welfare gain.

Critics of the North American Free Trade Agreement maintained that it would result in manufacturing firms fleeing Mexico's stringent pollution-control policies and relocating in the United States and Canada.

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

If several countries form a regional trading pact that removes tariffs between the members,implements a common external tariff structure,permits free mobility of factors of production,and integrates fiscal policies,they have formed a

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?

A primary goal of international commodity agreements has been the:

Which terms-of-trade concept emphasizes a nation's capacity to import?

The North American Free-Trade Agreement was most strongly opposed by U.S.:

In the United States,the proposed North American Free Trade Agreement was generally supported by:

Import substitution emphasizes decreasing reliance on international trade by

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:

The International Economy and Globalization

Foundations of Modern Trade Theory: Comparative Advantage

Sources of Comparative Advantage

Tariffs

Nontariff Trade Barriers

Trade Regulations and Industrial Policies

Regional Trading Arrangements

International Factor Movements and Multinational Enterprises

The Balance-of-payments

Foreign Exchange

Exchange Rate Determination

Mechanisms of International Adjustment

Exchange Rate Adjustments and the Balance-of-payments

Exchange Rate Systems and Currency Crises

Macroeconomic Policy in an Open-economy

International Banking: Reserves, Debt, and Risk

Filters