Exam 32: Comparative Advantage and the Open Economy

Suppose a Middle Eastern firm moves its final assembly line to Germany and then ships the final products to other members of the EU trading bloc.This is an example of

For the United States since 1950,imports as a percentage of GDP has

When nations specialize according to their comparative advantage

For the infant-industry argument for tariffs to be appropriate,it is necessary that

Assume that maximum feasible hourly productions levels if all resources are utilized in the United States are either 3 yards of fabric or 9 bushels of wheat.Maximum feasible production levels if all resources are utilized in Japan are either 6 yards of fabric or 12 bushels of wheat.Based on this information

Which of the following is NOT an example of a regional trade bloc?

If protective import-restricting tariffs are imposed by a country,in the majority of cases that nation's producers end up

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

The importance of international trade in the U.S.economy

Because of NAFTA,the U.S.shifts some of its imports from Europe to Mexico (a member of NAFTA).This is an example of

"It is possible to restrict imports and still maintain a fixed level of exports." Do you agree or disagree? Why?

Arguments in support of protectionism (and against free trade)include all of the following EXCEPT

The ability to produce the same quantity of a good or service using fewer units of labor is known as

Why is it impossible to make everyone better off in the long run by imposing import restrictions?

What is GATT and what happened to tariff rates as a result of GATT?

The international agreement signed in 1947 to promote world trade by reducing tariffs and other barriers to international trade was called

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

One economic truism is that any nation's restriction of imports will ultimately lead to

Trade deflection is an act that