Exam 7: Trade Policies for the Developing Nations

To be considered a good candidate for an export cartel,a commodity should:

A free trade area and a customs union differ in the way in which member nations treat imports from nonmember nations.

Under the European Union's common agricultural policy,a variable import levy equals the:

Prior to the formation of the Organization of Petroleum Exporting Countries,individual oil producing nations,

American critics of the North American Free Trade Agreement (NAFTA) thought that it could cause some U.S.companies to move to Mexico to benefit from

Advocates of the North American Free Trade Agreement (NAFTA) hoped that a rise in Mexican exports to the United States would discourage labor migration from Mexico to the United States.

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.

Which of the following represents the stage where economic integration is most complete?

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

According to the theory of optimal currency areas,there are gains to be achieved from sharing a currency across national boundaries.These gains include

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.Assume there exists a cartel of several producers that is maximizing total profit.If one producer cheats on the cartel agreement by decreasing its price and increasing its output,rational action of the other producers is to:

Developing countries often argue that advanced countries protect their farmers with

All of the following are factors mitigating against global trade liberalization EXCEPT:

Developing countries have often felt that it is easier to protect their manufacturers,via import-substitution policies,against foreign competitors than to force industrial nations to reduce trade restrictions on products exported by developing countries.

For most developing countries,the majority of their exports consists of

The North American Free Trade Agreement was expected to provide proportionately smaller benefits to Mexico than to the United States or Canada.

Efforts to stabilize export prices and revenues include all of the following except

Figure 7.3.World Oil Market -Consider Figure 7.3.Under competitive conditions,the price of a barrel of oil equals:

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

The European Union is primarily intended to permit: