Question 1

What are the terms of trade? What factors lead them to change over time?

Accepted Answer

The ratio of the price of a country's ex

Question 2

In the North-South model,how are "basic factors" distinguished from "advanced factors," and what are the implications for growth and development possibilities?

Accepted Answer

Basic factors include relatively unskill

Question 3

Which of the following is a nontariff barrier policy tool?

Accepted Answer

A) Sanitary regulations. 
B) Average duties. 
C) Phased liberalization. 
D) Ad valorem tax. 
A) Sanitary regulations. 
B) Average duties. 
C) Phased liberalization. 
D) Ad valorem tax.

Question 4

According to the Prebisch-Singer thesis

Accepted Answer

A) demand for primary products has steadily fallen. 
B) profits of primary producers have steadily fallen. 
C) primary producers' terms of trade have steadily fallen. 
D) prices of primary products have risen over time. 
A) demand for primary products has steadily fallen. 
B) profits of primary producers have steadily fallen. 
C) primary producers' terms of trade have steadily fallen. 
D) prices of primary products have risen over time.

Question 5

Suppose that a good that was formerly an import becomes an export,perhaps after an import substitution and export promotion strategy.How is this change reflected in the production possibility frontier?

Accepted Answer

The good that was on the import axis,now

Question 6

State and explain three [or some other number chosen by the instructor] reasons why the scope for further expansion of developing country commodity exports is likely to be limited.

Accepted Answer

(a)development of further synthetic subs

Question 7

Explain how international trade and trade policy helped Taiwan transform itself from an underdeveloped country to a high income country in a relatively short span of time.You might begin by discussing Taiwan's trade strategy.Why do you think international trade is of such vital importance to Taiwan?

Accepted Answer

Discussed

Question 8

Developing countries might be unable to respond smoothly to changing international price signals because of

Accepted Answer

A) a lack of government regulation. 
B) an abundance of skilled labor. 
C) inelastic supply curves. 
D) limited foreign exchange. 
A) a lack of government regulation. 
B) an abundance of skilled labor. 
C) inelastic supply curves. 
D) limited foreign exchange.

Question 9

Which of the following statements is true?

Accepted Answer

A) larger countries (in terms of size)tend to be more open (in terms of larger share of exports in GDP)than smaller countries and developing countries tend to be less open than developed economies. 
B) larger countries (in terms of size)tend to be less open (in terms of lower share of exports in GDP)than smaller countries and developing countries tend to be less open than developed economies. 
C) larger countries (in terms of size)tend to be more open (in terms of larger share of exports in GDP)than smaller countries and developing countries tend to be more open than developed economies. 
D) larger countries (in terms of size)tend to be less open (in terms of lower share of exports in GDP)than smaller countries and developing countries tend to be more open than developed economies. 
A) larger countries (in terms of size)tend to be more open (in terms of larger share of exports in GDP)than smaller countries and developing countries tend to be less open than developed economies. 
B) larger countries (in terms of size)tend to be less open (in terms of lower share of exports in GDP)than smaller countries and developing countries tend to be less open than developed economies. 
C) larger countries (in terms of size)tend to be more open (in terms of larger share of exports in GDP)than smaller countries and developing countries tend to be more open than developed economies. 
D) larger countries (in terms of size)tend to be less open (in terms of lower share of exports in GDP)than smaller countries and developing countries tend to be more open than developed economies.

Question 10

Briefly explain the major argument of the factor endowment trade theory.

Accepted Answer

Countries will tend to special

Question 11

Nontariff barriers

Accepted Answer

A) decrease foreign exchange earnings. 
B) reduce the quantity of goods exported. 
C) lower the effective price received for exports. 
D) all of the above. 
A) decrease foreign exchange earnings. 
B) reduce the quantity of goods exported. 
C) lower the effective price received for exports. 
D) all of the above.

Question 12

You are a lobbyist hired by a less developed country to try to prevent a developed country from increasing trade barriers against labor-intensive manufactured imports such as textiles.Make your case,arguing from both developed and developing country perspectives,in terms of who gains and who loses.

Accepted Answer

Requires synthesis of the neoclassical t

Question 13

Which of the following is an argument in favor of trade liberalization?

Accepted Answer

A) Increased investment. 
B) Infant industry. 
C) Fluctuating export earnings. 
D) Increased government revenue. 
A) Increased investment. 
B) Infant industry. 
C) Fluctuating export earnings. 
D) Increased government revenue.

Question 14

Evaluate critically the following statement: In light of the experience of the last two decades,free trade is the best trade policy for most developing countries.

Accepted Answer

Discussed

Question 15

Which of the following is a major argument of trade optimists?

Accepted Answer

A) Industrial policy can increase productivity of developing country manufacturing efficiency. 
B) New synthetic substitutes are constantly being discovered and improved. 
C) Developing country efficiency would improve with trade liberalization. 
D) All of the above. 
A) Industrial policy can increase productivity of developing country manufacturing efficiency. 
B) New synthetic substitutes are constantly being discovered and improved. 
C) Developing country efficiency would improve with trade liberalization. 
D) All of the above.

Question 16

A country simultaneously raises tariffs on manufactured goods and overvalues the exchange rate.Why might these seemingly contradictory policies be pursued together?

Accepted Answer

Students should show they understand why

Question 17

What are the key ingredients of Taiwan's successful entry into world markets? What lessons can other developing countries draw from Taiwan's experience with global markets?

Accepted Answer

The new case study discusses some of the

Question 18

Autarchy as used in the text refers to

Accepted Answer

A) an economy that does not trade. 
B) an economy that trades primary products in exchange for manufactures. 
C) developing country dictatorships. 
D) the caste system and related social structures. 
A) an economy that does not trade. 
B) an economy that trades primary products in exchange for manufactures. 
C) developing country dictatorships. 
D) the caste system and related social structures.

Question 19

The real price trendline for non fuel primary commodities from 1960-2005 has been

Accepted Answer

A) Unchanged 
B) Steadily increasing 
C) Steadily decreasing 
D) First decreased and then increased. 
A) Unchanged 
B) Steadily increasing 
C) Steadily decreasing 
D) First decreased and then increased.

Question 20

The ratio of a country's average export price to its average import price is

Accepted Answer

A) its absolute advantage. 
B) its comparative advantage. 
C) its terms of trade. 
D) its exchange rate. 
A) its absolute advantage. 
B) its comparative advantage. 
C) its terms of trade. 
D) its exchange rate.

What are the terms of trade? What factors lead them to change over time?

In the North-South model,how are "basic factors" distinguished from "advanced factors," and what are the implications for growth and development possibilities?

Which of the following is a nontariff barrier policy tool?

According to the Prebisch-Singer thesis

Suppose that a good that was formerly an import becomes an export,perhaps after an import substitution and export promotion strategy.How is this change reflected in the production possibility frontier?

State and explain three [or some other number chosen by the instructor] reasons why the scope for further expansion of developing country commodity exports is likely to be limited.

Explain how international trade and trade policy helped Taiwan transform itself from an underdeveloped country to a high income country in a relatively short span of time.You might begin by discussing Taiwan's trade strategy.Why do you think international trade is of such vital importance to Taiwan?

Developing countries might be unable to respond smoothly to changing international price signals because of

Which of the following statements is true?

Briefly explain the major argument of the factor endowment trade theory.

Nontariff barriers

You are a lobbyist hired by a less developed country to try to prevent a developed country from increasing trade barriers against labor-intensive manufactured imports such as textiles.Make your case,arguing from both developed and developing country perspectives,in terms of who gains and who loses.

Which of the following is an argument in favor of trade liberalization?

Evaluate critically the following statement: In light of the experience of the last two decades,free trade is the best trade policy for most developing countries.

Which of the following is a major argument of trade optimists?

A country simultaneously raises tariffs on manufactured goods and overvalues the exchange rate.Why might these seemingly contradictory policies be pursued together?

What are the key ingredients of Taiwan's successful entry into world markets? What lessons can other developing countries draw from Taiwan's experience with global markets?

Autarchy as used in the text refers to

The real price trendline for non fuel primary commodities from 1960-2005 has been

The ratio of a country's average export price to its average import price is

Introducing Economic Development: a Global Perspective

Comparative Economic Development

Classic Theories of Economic Growth and Development

Contemporary Models of Development and Underdevelopment

Poverty,inequality,and Development

Population Growth and Economic Development: Causes,consequences,and Controversies

Urbanization and Rural-Urban Migration: Theory and Policy

Human Capital: Education and Health in Economic Development

Agricultural Transformation and Rural Development

The Environment and Development

Development Policymaking and the Roles of Market,state,and Civil Society

Balance of Payments,debt,financial Crises,and Stabilization Policies

Foreign Finance,investment,aid,and Conflict: Controversies and Opportunities

Finance and Fiscal Policy for Development

Filters

Exam 12: International Trade Theory and Development Strategy

What are the terms of trade? What factors lead them to change over time?

In the North-South model,how are "basic factors" distinguished from "advanced factors," and what are the implications for growth and development possibilities?

Which of the following is a nontariff barrier policy tool?

According to the Prebisch-Singer thesis

Suppose that a good that was formerly an import becomes an export,perhaps after an import substitution and export promotion strategy.How is this change reflected in the production possibility frontier?

State and explain three [or some other number chosen by the instructor] reasons why the scope for further expansion of developing country commodity exports is likely to be limited.

Developing countries might be unable to respond smoothly to changing international price signals because of

Which of the following statements is true?

Briefly explain the major argument of the factor endowment trade theory.

Nontariff barriers

You are a lobbyist hired by a less developed country to try to prevent a developed country from increasing trade barriers against labor-intensive manufactured imports such as textiles.Make your case,arguing from both developed and developing country perspectives,in terms of who gains and who loses.

Which of the following is an argument in favor of trade liberalization?

Evaluate critically the following statement: In light of the experience of the last two decades,free trade is the best trade policy for most developing countries.

Which of the following is a major argument of trade optimists?

A country simultaneously raises tariffs on manufactured goods and overvalues the exchange rate.Why might these seemingly contradictory policies be pursued together?

What are the key ingredients of Taiwan's successful entry into world markets? What lessons can other developing countries draw from Taiwan's experience with global markets?

Autarchy as used in the text refers to

The real price trendline for non fuel primary commodities from 1960-2005 has been

The ratio of a country's average export price to its average import price is

Introducing Economic Development: a Global Perspective

Comparative Economic Development

Classic Theories of Economic Growth and Development

Contemporary Models of Development and Underdevelopment

Poverty,inequality,and Development

Population Growth and Economic Development: Causes,consequences,and Controversies

Urbanization and Rural-Urban Migration: Theory and Policy

Human Capital: Education and Health in Economic Development

Agricultural Transformation and Rural Development

The Environment and Development

Development Policymaking and the Roles of Market,state,and Civil Society

Balance of Payments,debt,financial Crises,and Stabilization Policies

Foreign Finance,investment,aid,and Conflict: Controversies and Opportunities

Finance and Fiscal Policy for Development

Filters