Exam 7: Trade Policies for the Developing Nations

As of 2002,members of the European Monetary Union agreed to replace their currencies with the:

Which organization was founded in 1957 whose objective was to create an economic union among its members?

The Fair Trade Movement attempts to help poor coffee growers in developing countries by providing them higher prices for their coffee beans.

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

The Maastricht Treaty of 1991 established a blueprint for economic union and monetary union for European Union members.

Which organization of nations permits free trade among its members in industrial goods,while each member maintains freedom in its trade policies toward non-member countries?

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.With free trade,Greece imports:

If Chile and Mexico abolish all tariffs on each other's products while maintaining their own tariffs against other countries,these two countries have formed a customs union.

The developing countries tend to reside in all of the following regions except

What are some major trade problems faced by developing nations?

Regarding a common market,which of the following is true?

Suppose that Mexico and Canada form a free-trade area and Canada begins importing steel from Mexico rather than from Germany.There occurs:

During the 1980s and 1990s,the United States negotiated free-trade agreements with Israel,Mexico,and Canada.

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

By removing discriminatory government procurement laws within the European Union,member nations hoped to benefit from all of the following except:

The success of buffer stocks is limited by the fact that stockpiles of a product may be exhausted after prolonged sales,while funds may be exhausted after prolonged purchases.

The implementation of the European Union has:

Export-led growth tends to:

Members of the European Union find that "trade creation" is fostered when their economies are:

Which form of economic integration occurs when participating countries abolish tariffs on trade among themselves,establish a common tariff on imports from nonmembers,and permit free movement of capital and labor within the organization?