Exam 18: International Trade and Public Policy

Protection can give new industries a chance to get a foothold so that they can later compete in the international market after they become more productive through learning by doing.

Recall the Application about how worldwide trade has affected the U.S. auto industry to answer the following question(s). -According to this Application,over the past few years there has been a ________ increase in ________ of automobile parts from outside the United States and Canada.

Recall the Application about the impact tariffs have on lower income households to answer the following question(s). Economists have found that tariffs in the United States fall most heavily on lower-income consumers. In the United States, tariffs are very high on textiles, apparel items and footwear, and within these categories the highest tariffs fall on the cheapest products. In general, to protect U.S. industries, tariffs are highest on labor-intensive goods. -Based on the Application,we can conclude that U.S.tariffs hurt poor consumers disproportionately because

In the last few decades there has been considerable progress in lowering the barriers to international trade.

Under current WTO rules a country can make imports be more environmentally friendly than domestic goods.

Suppose there are only 2 Nations,A and B,and only two goods,x and y.If Nation A produces only x,it can make 12x per day.If Nation A produces only y,it can make 36y per day.If Nation B produces only x,it can make 4x per day.If Nation B produces only y,it can make 12y per day.After trade begins,Nation ________ will specialize in the production of x and Nation ________ will specialize in the production of y.

Daily Output of Japan and United States Table 18.2 -Refer to Table 18.2.The opportunity cost of a stereo in the United States is

The terms of trade is the

Daily Output of Scotland and Poland Table 18.1 -Refer to Table 18.1.If Scotland produces 50 bagpipes,how many accordions can they produce for the rest of the day?

In 2002,President Bush imposed a tariff on imported steel in order to protect domestic steel producers.What was the reason why the tariff ended?

Trade theory suggests that increased trade leads to increased wage inequality.

Consider the following weekly production possibilities of bagpipes and accordions in Poland and Scotland: What is each country's opportunity cost of producing bagpipes and accordions? If the countries could,should they trade?

A U.S.boycott against Mexican tuna caught in nets was

Would consumers benefit more from a tariff or a quota on imports? Explain.

Daily Output of Scotland and Poland Table 18.1 -Refer to Table 18.1.After trade begins,________ will specialize in the production of accordions and ________ will specialize in the production of bagpipes.

Figure 18.5 -For the good in Figure 18.5,with the tariff,the people in the country will produce

A possible reason a nation might impose a protectionist policy such as a tariff is to

Which of the following is a criticism that economists have against regional free trade areas?

Which of the following situations will arise in the domestic market following the removal of an import quota?

The production possibilities curve represents the set of all