Exam 32: Comparative Advantage and the Open Economy

The law that created the high level of tariffs in United States in the 1930s is

An official agreement with another country in which it agrees to import more from the United States is

Restrictions on imports

-According to economic historians, one result of international trade is that it

People who focus on the "competitiveness" of the United States are

A difference between a quota and a tariff is that

Country X subsidizes industry A. A worldwide recession has hit and Country X has decided to export Good A worldwide, selling the product for less than it costs to produce it. This is

The argument that with initial protection an industry will eventually become competitive is called the

Tariffs to limit imports to "protect U.S. jobs" will also

To avoid tariffs, a Japanese firm moves its final assembly line to Mexico and then ships the final products to Canada. This is an example of

The most important international trade organization is

A country will specialize in the good for which

Consider the opportunity costs of producing goods X and Y that are listed for the four individuals above. Which person has a comparative advantage in producing good X?

The North American Free Trade Agreement and the European Union are examples of

Dumping typically occurs as long as the foreign producer sells its output at a price

Assume that U.S. producers can manufacture cookies at a lower opportunity cost than Mexican producers. If this is the case

The idea that tariffs should be imposed to protect new and developing industries is referred to as

Which of the following would increase the total amount of trade in the world?

Discuss the relationship between world trade and world Gross Domestic Product (GDP) since the early 1950s.

Which of the following is NOT a true statement regarding free trade?