Chat with AIExam 12: International Trade Theory and Development Strategy
Explain why a country's gains from trade may not accrue to nationals.Indicate the differential effects on GNP and GDP.
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Answered by Examlex AI CopilotA country's gains from trade may not accrue to nationals for several reasons. One reason is that the benefits of trade may be unevenly distributed within the country, with certain industries or regions benefiting more than others. This can lead to income inequality and disparities in wealth distribution. Additionally, gains from trade may not accrue to nationals if the country's trade policies are not effectively managed, leading to trade deficits, loss of domestic industries, and job displacement.
The differential effects on GNP (Gross National Product) and GDP (Gross Domestic Product) can also contribute to the gains from trade not accruing to nationals. GNP measures the total economic output of a country's residents, including income earned abroad, while GDP measures the total economic output within a country's borders. If a country's gains from trade primarily benefit foreign investors or multinational corporations, the increase in GNP may not translate to an equivalent increase in GDP. This can result in a situation where the country's overall economic output grows, but the benefits are not felt by the majority of its nationals.
In conclusion, a country's gains from trade may not accrue to nationals due to uneven distribution of benefits, ineffective trade policies, and differential effects on GNP and GDP. It is important for policymakers to consider these factors when formulating trade agreements and policies to ensure that the gains from trade are equitably distributed and contribute to the overall well-being of the country's nationals.
Which of the following is not a reason why the prospects for the further expansion of developing country commodity exports are likely to be limited?
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Explain the dynamic rationale for economic integration among developing countries.
(37) Answered by Examlex AI CopilotThe dynamic rationale for economic integration among developing countries is based on the idea that by coming together and forming closer economic ties, these countries can collectively benefit from increased trade, investment, and cooperation.
One of the main reasons for economic integration among developing countries is to create a larger market for their goods and services. By removing trade barriers and promoting free trade within the integrated region, these countries can access a larger consumer base, leading to increased exports and economic growth.
Additionally, economic integration can also lead to increased foreign direct investment (FDI) as it creates a more attractive and stable investment environment. This can help developing countries to attract much-needed capital for infrastructure development, technology transfer, and industrial expansion.
Furthermore, economic integration can also lead to the sharing of knowledge, technology, and best practices among member countries, which can help to improve productivity and competitiveness. This can lead to overall economic development and poverty reduction within the integrated region.
Overall, the dynamic rationale for economic integration among developing countries is to create a more competitive and attractive economic environment, leading to increased trade, investment, and cooperation, which can ultimately contribute to the economic development and prosperity of the member countries.
The opening of export markets for primary products can provide employment for previously underutilized land and labor.The term for this is
(29) What is an overvalued exchange rate? What factors may cause a country's currency to become overvalued?
(40) Guiding the market through strategic coordination of business investments to increase export market shares is known as
(24) In most less developed countries,the initial target of import substitution is to promote domestic production of
(30) Which of the following countries provides the best example of a successful import substitution development strategy?
(36) Which of the following is an argument in favor of interventionist trade policies?
(37) When and under what circumstances is intervention in international trade justified on market correction grounds? What preconditions would have to be met from the government side for there to be a reasonable likelihood of success?
(31) Why is it impossible that all industries in a developing country qualify as infant industries?
(40) Which of the following is a major argument of trade pessimists?
(33) Economists frequently urge governments of developing countries to replace import quotas with import tariffs as a first step in a strategy that aims to reduce import protection.What is the reasoning offered by economists to support this recommendation to developing countries?
(37) State three country characteristics that encourage and three that discourage economic integration among developing countries.
(34) The average level of effective protection has exceeded 300% for which of the following countries?
(39) Discuss some of the factors that lead infant manufactured goods industries to become more efficient over time,and some of the factors that might lead them to fail to do so.
(33) What are the drawbacks of overvaluing the exchange rate as an import substitution policy?
(39) Many developing countries have a static comparative advantage in the production of one or two primary products.In what ways might specialization in these products contribute to growth and development? In what ways might this fail to contribute?
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