Identify the 5 Correct Statements

Essay

Identify the 5 correct statements
1. According to classical trade theory countries should engage in free trade to help domestic companies to become successful exporters.
2. According to classical trade theory countries should engage in free trade because of the consumer benefits from lower prices resulting from a more efficient distribution of labour.
3. There is a risk that in reality structural change emanating from opening-up economies can result in persistent structural unemployment or real income losses.
4. Import quotas are a standard trade policy instrument that is allowed by the WTO and hence often used to deal with a sudden surge of foreign imports.
5. A voluntary export restraint (VER) is more harmful in terms of welfare losses to the protectionist country than a tariff.
6. A voluntary export restraint (VER) can be beneficial for the export-restrained foreign exporter.
7. Lower wages abroad constitute an unfair trade practice.
8. A carbon dioxide tax would lead to lower global trade, and thus to a reduction of global welfare.
9. Robotisation can stimulate re-shoring or nearshoring of production.
10. Incidences like the Covid-19 pandemic clearly show the need of having fully national value chains in order to secure a steady supply of critical health products.