Exam 7: Trade Policies for the Developing Nations

Which of the following situations reduces the likelihood of successful operation of a cartel?

For developing countries,a key factor underlying the instability of primary-product prices and export receipts is the high price elasticity of demand for products such as tin and copper.

The United Nation Conference on Trade and Development in 1964 was successful in convincing developing countries to switch from export-led industrialization to import-substitution industrialization.

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

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.

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

If the demand for coffee is price inelastic,an increase in the supply of coffee leads to falling prices and rising sales revenues.

The majority of developing-nation exports are primary products such as agricultural goods and raw materials; of the manufactured goods exported by developing nations,most are labor-intensive goods.

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

Describe the flying-geese pattern of economic growth? What countries have pursued this strategy?

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

During periods of weak demand,the Organization of Petroleum Countries has implemented production (export)quotas to ensure that excess oil supplies be kept off the market.

The replacement of imports of one nation with imports of another nation is known as "import substitution."

Assuming identical cost and demand curves,OPEC as a cartel will,in comparison to a competitive industry:

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

Import-substitution policies are supported by the fact that many developing countries have small domestic markets and thus their producers enjoy the benefits of diseconomies of small-scale production.

Developing nations overwhelmingly acknowledge that they have benefited from international trade according to the principle of comparative advantage.

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.

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.

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: