Exam 7: Trade Policies for the Developing Nations

Stabilizing commodity prices around long-term trends tends to benefit $\underline { \text { importers } }$ at the expense of exporters in markets characterized by:

International commodity agreements do $\underline { \text { not } }$ :

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.

To promote stability in commodity markets, International Commodity Agreements have utilized production and export controls, buffer stocks, and multilateral contracts.

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:

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

A widely used indicator to differentiate developed countries from developing countries is:

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 increases from S₀ to S₁. Under a buffer stock system, the buffer-stock manager could maintain the target price by:

A reason why it is difficult for producers to maintain a cartel is that:

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

As a profit-maximizing cartel, the Organization of Petroleum Exporting Countries would produce a greater output and charge a lower price than what would occur in a competitive market.

The so-called Four Tigers include Australia, South Korea, Taiwan, and Hong Kong.

Which device has the International Tin Agreement utilized as a way of stabilizing tin prices?

The OPEC nations during the 1970s manifested their market power by utilizing:

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

Which nation accounts for the largest amount of OPEC's oil reserves and production?

All of the following nations except ____ have recently utilized export-led (outward oriented) growth policies.

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.

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 increases from D₀ to D_1. Under a buffer stock system, the buffer-stock manager could maintain the target price by:

Which device has been used by the International Wheat Agreement to stipulate the minimum prices at which importers will buy stipulated quantities from producers and the maximum prices at which producers will sell stipulated quantities to importers?