Question 1

______________ are international attempts to stabilize and increase the prices and earnings of the primary exports of developing nations.

Accepted Answer

A) Farm equalization committees 
B) Agricultural stabilization commissions 
C) Marketing boards 
D) International commodity agreements 
A) Farm equalization committees 
B) Agricultural stabilization commissions 
C) Marketing boards 
D) International commodity agreements

Question 2

Which of the following agreements was based on export controls?

Accepted Answer

A) The International Rice Agreement 
B) The International Sugar Agreement 
C) The International Cocoa Bean Agreement 
D) The International Banana Agreement 
A) The International Rice Agreement 
B) The International Sugar Agreement 
C) The International Cocoa Bean Agreement 
D) The International Banana Agreement

Question 3

Which economist found that export instability was somewhat larger for developing nations than for developed nations during the postwar period?

Accepted Answer

A) Hans Singer 
B) Alasdair MacBean 
C) Alfred Marshall 
D) Kenneth Arrow 
A) Hans Singer 
B) Alasdair MacBean 
C) Alfred Marshall 
D) Kenneth Arrow

Question 4

The New International Economic Order called for which of the following?

Accepted Answer

A) The renegotiation of the international debt of developing countries and the reduction in interest payments. 
B) The establishment of international commodity agreements. 
C) Preferential access in developed nations' markets to all the manufactured exports of developing nations. 
D) All of these options are correct. 
A) The renegotiation of the international debt of developing countries and the reduction in interest payments. 
B) The establishment of international commodity agreements. 
C) Preferential access in developed nations' markets to all the manufactured exports of developing nations. 
D) All of these options are correct.

Question 5

What is Immiserizing Growth? Why is immiserizing growth seldom experienced in the real world?

Accepted Answer

Immiserizing growth is a phenomenon that

Question 6

Although traditional trade theories suggest that developing countries should specialize in labor intensive commodities like,raw material,food,minerals,etc.,why do some developing countries believe that a pattern of specialization under the theory of comparative advantage relegated them to a subordinate position compared to the developed nations?

Accepted Answer

It has to do with the static versus dyna

Question 7

Assume in base year 1995,the net barter terms of trade is equal to 100,and we find that,for the 2004 fiscal year,the US price index for exports has risen 8 percent and the price index for imports has fallen by 4 percent.What is the value of the U.S.net barter terms of trade?

Accepted Answer

A) 63.4 
B) 101.2 
C) 88.6 
D) 112.5 
A) 63.4 
B) 101.2 
C) 88.6 
D) 112.5

Question 8

Which of the following is one of the disadvantages of export-oriented industrialization?

Accepted Answer

A) It may be very difficult for developing nations to set up export industries because of the competition from the more established and efficient industries in developed nations. 
B) The expansion of manufactured exports is not limited by the growth of the domestic market. 
C) Domestic industries can grow accustomed to protection from foreign competition and have no incentive to become more efficient. 
D) It allows developing nations to take advantage of economies of scale. 
A) It may be very difficult for developing nations to set up export industries because of the competition from the more established and efficient industries in developed nations. 
B) The expansion of manufactured exports is not limited by the growth of the domestic market. 
C) Domestic industries can grow accustomed to protection from foreign competition and have no incentive to become more efficient. 
D) It allows developing nations to take advantage of economies of scale.

Question 9

The slowdown of the world economy during the 1980's and early 1990's gave industrial countries the ability to turn outward to address any internal problems of slow growth and unemployment.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is not one of the three main advantages of an import-substitution industrialization strategy?

Accepted Answer

A) The market for the industrial product already exists,as evidenced by imports of the commodity,so that risks are reduced in setting up an industry to replace imports 
B) It is easier for developing nations to protect their domestic market against foreign competition than to force developed nations to lower trade barriers against their manufactured exports 
C) Foreign firms are induced to establish so-called tariff factories to overcome the tariff wall of developing nations 
D) It overcomes the smallness of the domestic market and allows a developing nation to take advantage of economies of scale 
A) The market for the industrial product already exists,as evidenced by imports of the commodity,so that risks are reduced in setting up an industry to replace imports 
B) It is easier for developing nations to protect their domestic market against foreign competition than to force developed nations to lower trade barriers against their manufactured exports 
C) Foreign firms are induced to establish so-called tariff factories to overcome the tariff wall of developing nations 
D) It overcomes the smallness of the domestic market and allows a developing nation to take advantage of economies of scale

Question 11

International trade can contribute to the economic growth of today's developing nations in which of the following ways?

Accepted Answer

A) Trade can lead to the full utilization of otherwise underemployed domestic resources. 
B) By expanding the size of the market,trade makes possible division of labor and economies of scale. 
C) International trade is the vehicle for the transmission of new ideas,new technology,and new managerial and other skills. 
D) All of these options are correct. 
A) Trade can lead to the full utilization of otherwise underemployed domestic resources. 
B) By expanding the size of the market,trade makes possible division of labor and economies of scale. 
C) International trade is the vehicle for the transmission of new ideas,new technology,and new managerial and other skills. 
D) All of these options are correct.

Question 12

Which of the following is one of the advantages of export-oriented industrialization?

Accepted Answer

A) It overcomes the smallness of the domestic market and allows a developing nation to take advantage of economies of scale 
B) The market for the industrial product exists domestically,as evidenced by imports of the commodity,so that risks are reduced in setting up an industry to replace imports 
C) It is easier for developing nations to protect their domestic market against foreign competition than to force developed nations to lower trade barriers against their manufactured exports 
D) Foreign firms are induced to establish so-called tariff factories to overcome the tariff wall of developing nations 
A) It overcomes the smallness of the domestic market and allows a developing nation to take advantage of economies of scale 
B) The market for the industrial product exists domestically,as evidenced by imports of the commodity,so that risks are reduced in setting up an industry to replace imports 
C) It is easier for developing nations to protect their domestic market against foreign competition than to force developed nations to lower trade barriers against their manufactured exports 
D) Foreign firms are induced to establish so-called tariff factories to overcome the tariff wall of developing nations

Question 13

Which High Performance Asian Economies (HEPA)are labeled as the 4 Asian Tigers?

Accepted Answer

A) Hong Kong,Malaysia,Taiwan and Yemen 
B) Hong Kong,Korea,Singapore and Taiwan 
C) Taiwan,Pakistan,Taiwan and Hong Kong 
D) Singapore,Korea,China and Hong Kong 
A) Hong Kong,Malaysia,Taiwan and Yemen 
B) Hong Kong,Korea,Singapore and Taiwan 
C) Taiwan,Pakistan,Taiwan and Hong Kong 
D) Singapore,Korea,China and Hong Kong

Question 14

The NIEO is the set of demands made by developing nations as a group at the UN for the removal of alleged inequities in the operation of the present international economic system.

Accepted Answer

A) True 
 B)False

______________ are international attempts to stabilize and increase the prices and earnings of the primary exports of developing nations.

Which of the following agreements was based on export controls?

Which economist found that export instability was somewhat larger for developing nations than for developed nations during the postwar period?

The New International Economic Order called for which of the following?

What is Immiserizing Growth? Why is immiserizing growth seldom experienced in the real world?

Assume in base year 1995,the net barter terms of trade is equal to 100,and we find that,for the 2004 fiscal year,the US price index for exports has risen 8 percent and the price index for imports has fallen by 4 percent.What is the value of the U.S.net barter terms of trade?

Which of the following is one of the disadvantages of export-oriented industrialization?

The slowdown of the world economy during the 1980's and early 1990's gave industrial countries the ability to turn outward to address any internal problems of slow growth and unemployment.

Which of the following is not one of the three main advantages of an import-substitution industrialization strategy?

International trade can contribute to the economic growth of today's developing nations in which of the following ways?

Which of the following is one of the advantages of export-oriented industrialization?

Which High Performance Asian Economies (HEPA)are labeled as the 4 Asian Tigers?

The NIEO is the set of demands made by developing nations as a group at the UN for the removal of alleged inequities in the operation of the present international economic system.

Introduction to the Global Economy

Comparative Advantage

The Standard Trade Model

The Heckscher-Ohlin and Other Trade Theories

Trade Restrictions: Tariffs

Nontariff Trade Barriers and the Political Economy of Protectionism

Economic Integration

International Resource Movements and Multinational Corporations

Balance of Payments

The Foreign Exchange Market and Exchange Rates

Exchange Rate Determination

Automatic Adjustments With Flexible and Fixed Exchange Rates

Adjustment Policies

Flexible Versus Fixed Exchange Rates,european Monetary Systems,and Macroeconomic Policy Coordination

The International Monetary System: Past, present, and Future

Filters

Exam 8: Growth and Development With International Trade

______________ are international attempts to stabilize and increase the prices and earnings of the primary exports of developing nations.

Which of the following agreements was based on export controls?

Which economist found that export instability was somewhat larger for developing nations than for developed nations during the postwar period?

The New International Economic Order called for which of the following?

What is Immiserizing Growth? Why is immiserizing growth seldom experienced in the real world?

Assume in base year 1995,the net barter terms of trade is equal to 100,and we find that,for the 2004 fiscal year,the US price index for exports has risen 8 percent and the price index for imports has fallen by 4 percent.What is the value of the U.S.net barter terms of trade?

Which of the following is one of the disadvantages of export-oriented industrialization?

The slowdown of the world economy during the 1980's and early 1990's gave industrial countries the ability to turn outward to address any internal problems of slow growth and unemployment.

Which of the following is not one of the three main advantages of an import-substitution industrialization strategy?

International trade can contribute to the economic growth of today's developing nations in which of the following ways?

Which of the following is one of the advantages of export-oriented industrialization?

Which High Performance Asian Economies (HEPA)are labeled as the 4 Asian Tigers?

The NIEO is the set of demands made by developing nations as a group at the UN for the removal of alleged inequities in the operation of the present international economic system.

Introduction to the Global Economy

Comparative Advantage

The Standard Trade Model

The Heckscher-Ohlin and Other Trade Theories

Trade Restrictions: Tariffs

Nontariff Trade Barriers and the Political Economy of Protectionism

Economic Integration

International Resource Movements and Multinational Corporations

Balance of Payments

The Foreign Exchange Market and Exchange Rates

Exchange Rate Determination

Automatic Adjustments With Flexible and Fixed Exchange Rates

Adjustment Policies

Flexible Versus Fixed Exchange Rates,european Monetary Systems,and Macroeconomic Policy Coordination

The International Monetary System: Past, present, and Future

Filters