1、chinese students go abroad to study in united kingdom means_____. a、the united kingdom exports education services to china. b、the united kingdom imports education services from china. c、china exports education services to united kingdom. d、china imports tourism services from united kingdom.
2、as we all know,import is as important as exports,because_____.which of following is not ture? a、import can provide products or services that the domestic market cannot provide. b、import can force the local firms try their best to innovate. c、import can force the local firms improve product’s quality. d、imports will hinder world economic growth absolutely.
3、not all the people like trade, in fact some particular group will be harmed by trade. t or f
1.2 features and trends of world trade随堂测验
1、which of following is not key features and trends of world trade? a、service trade has became the most important content of world trade. b、trade in value added emerging as a sensitive and important topic and attracts more and more attention. c、digital technologies are reshaping world trade. d、fluctuation of commodity price will affect value of trade deeply.
2、from what we learned,______provide a new insight into the commercial relations between nations by considering the value added by each country. a、trade in commodities b、trade in service c、trade in value-added d、intellectual property
3、3）digital technologies has fundamentally reshaped our economies, slashing the cost of acquiring and trading information. t or f
1.3 who trades with whom: the gravity model随堂测验
1、from the gravity model equation, we can find that the value of trade between two countries depends on two important factors, one is _______ and the other is_______. a、economic size,the distance between them. b、national territorial area ,the distance between them. c、economic size,national territorial area. d、economic size,investment.
2、why in 2006 canada is usa’s biggest trader, while in 2015 china substituted canada to be the no.1? a、because there are so many chinese. b、because china’s economic size expanded. c、because china is closer to america than canada. d、because chinese labor price is lower.
3、only economic size and distance can affect trade pattern. t or f
01 world trade: an overview
1、trade includes____and____, contribute much to economic globalization, especially to world economic growth. a、export,investiment. b、import,investiment. c、export,import. d、investiment,consumption.
2、in nov. 2018, chinese government started to have china international import expo,______. a、which is harmful for trade liberalization. b、which is the first expo on the world that aims to encourage import. c、which will dramaticlly weaken the competition of domestic market. d、which will deter to economic globalization.
3、nowadays members of wto also pay more attention on service trade compared with before. because_____. a、service trade has become more important than merchandise trade. b、the issues of service trade usually combined with investment,which is important for world economic growth. c、service trade is more competitive than other kinds of trade. d、advanced countries has stronger competency in commercial service trade.
4、developing countries are becoming more important in world trade,________. a、because the share of developing countries in world merchandise exports has increased obviously. b、and developing economies exported less and less in past years. c、merchandise trade between developing economies has decreased in the past decade. d、because developing countries tend to cooperate with big economics.
5、why the three european giants, germany, u.k. and france usually have closer trade relationship with usa? a、because of the economic size. b、because of the distance. c、because of political factors. d、because of the border effect.
6、according to the gravity model, a characteristic that tends to affect the probability of trade existing between any two countries is______. a、their cultural affinity. b、the value of their traded goods. c、their colonial-historical ties. d、the distance between them.
7、which of following is not the factor affectting trade pattern? a、cultural affinity b、geography c、political factors d、physics
8、when world merchandise trade developed robust,______. a、the performance of world real gdp growth rate will beterrible. b、the world real gdp growth rate is to be negative. c、the performance of world real gdp growth rate generally is also good. d、it will pull down the world real gdp growth rate.
9、for the consumers, trade especially import is very important,not because_____. a、they can have more choice and buy products. b、they can enjoy services of higher quality with lower price. c、they can access to kinds of products from different counties in the supermarket. d、they can have more money to buy various products.
10、relying too much on trade,that’s to say, trade dependency or trade openness is too high,which is not very good for one country.which of following is not ture? a、because it will make the country too fragile. b、this is especially true for large countries. c、but unfortunately, some countrie’s trade dependency still very high. d、china’s trade dependency is very slow.
11、_____still the most important content of world trade. a、manufactured goods b、service trade c、intellectual property d、partial manufactures
12、the change range of the value of world merchandise trade usually larger than the volume one. why? a、because the volume of world merchandise trade is shinking. b、becausethe value of world merchandise trade is jumping. c、the key reason is that the price of commodity has big influence on the trend of world trade development. d、because the rising of commodity price.
13、usually, when world economy is hot, world trade volume will _____, at the same time the commodity price also will _____, so the value of world trade will expand more. a、expand,fell down b、expand,rise c、shink,fell down d、shink,rise
14、which of the following is most likely among the key topic list of g20 summit? a、how to strengthen protective barriers. b、how to encourage innovation. c、how to ensure electricity safety. d、how to deal with the fluctuation of commodity prices.
15、the traditional calculation usually misleads the understanding about global trade relationship. tiva addresses this issue by _______. a、composing of parts from various countries around the world. b、considering the value added by each country in the production of goods and services that are consumed worldwide. c、reflecting in conventional measures of international trade. d、producing and exporting products which import parts from other country.
02 classical trade theory
2.1 mercantilism随堂测验
1、the mercantilists would have objected to: a、export promotion policies initiated by the government b、the use of tariffs or quotas to restrict imports c、trade policies designed to accumulate gold and other precious metals d、international trade based on open markets
2、the mercantilists contended that because one nation's gains from trade come at the expense of its trading partners, not all nations could simultaneously realize gains from trade.
3、according to the price-specie-flow-doctrine, a trade-surplus nation would experience gold outflows, a decrease in its money supply, and a fall in its price level.
2.2 absolute advantage theory随堂测验
1、referring to the following table, the united states has the absolute advantage in the production of: _____. table： output possibilities of the u.s. and the u.k. output per worker per day country tons of steel televisions united states 5 45 united kingdom 10 20 a、steel b、televisions c、both steel and televisions d、neither steel nor televisions
2、referring to the following figure , the relative cost of steel in terms of aluminum is: __________. figure：production possibilities schedule a、4.0 tons b、2.0 tons c、0.5 tons d、0.25 tons
3、unlike the mercantilists, adam smith maintained that:___________. a、trade benefits one nation only at the expense of another nation b、government control of trade leads to maximum economic welfare c、all nations can gain from free international trade d、the world's output of goods must remain constant over time
2.3 comparative advantage theory (1)随堂测验
1、in order to know whether a country has a comparative advantage in the production of one particular product we need information on at least ________ unit labor requirements. a、one b、two c、three d、four
2、given the information in the following table, __________. a、neither country has a comparative advantage in cloth. b、home has a comparative advantage in widgets. c、foreign has a comparative advantage in widgets. d、home has a comparative advantage in both cloth and widgets.
3、ricardo's theory of comparative advantage was of limited real-world validity because it was founded on the: _________. a、labor theory of value b、capital theory of value c、land theory of value d、entrepreneur theory of value
2.4 comparative advantage theory (2)随堂测验
1、you are given the following classical-type table indicating the number of days of labor input needed to make one unit of output of each of the five commodities in each of the two countries. assume that the wage rate in england is £60 per day, that the wage rate in portugal is £40 per day. with the given information, what will be the trade pattern if the two countries engage in trade? a、england will export good a and import goods b, c, d, and e. b、england will export goods a and d and import goods b, c, and e. c、england will export goods a, b, and e and import goods c and d. d、england will export goods a, b, d, and e and import good c.
2、given the following classical-type table shows the number of days of labor input required to obtain one unit of output of each of the three commodities in each of the two countries: suppose that the wage rate in the united kingdom is £30 per day, the wage rate in the united states is £40 per day. in this situation, the united kingdom will ___________. a、export good t and import goods x and y. b、export good y and import goods t and x. c、export goods t and x and import good y. d、export goods x and y and import good t.
3、in the real world, a country’s comparative advantage can change over time.
02 classical trade theory
1、in the mercantilist view of international trade (in a two-country world),___________. a、both countries could gain from trade at the same time, but the distribution of the gains depended upon the terms of trade. b、both countries could gain from trade at the same time, and the terms of trade were of no consequence for the distribution of the gains. c、neither country could ever gain from trade. d、one country’s gain from trade was associated with a loss for the other country.
2、in the price-specie-flow doctrine, a deficit country will __________ gold, and this gold flow will ultimately lead to __________ in the deficit country’s exports. a、lose; a decrease b、lose; an increase c、gain; a decrease d、gain; an increase
3、which of the following policies would not be consistent with the mercantilist balance-of-trade doctrine? a、payment of high wages to labor b、import duties on final products c、export subsidies d、prohibition of imports of manufactured goods
4、referring to the following table, the opportunity cost of one vcr in japan is: table: output possibilities for south korea and japan output per worker per day country tons of steel vcrs south korea 80 40 japan 20 20 a、1 ton of steel b、2 tons of steel c、3 tons of steel d、4 tons of steel
5、refer to the following table, according to the principle of absolute advantage, japan should: table: output possibilities for south korea and japan output per worker per day country tons of steel vcrs south korea 80 40 japan 20 20 a、export steel b、export vcrs c、export steel and vcrs d、none of the above; there is no basis for gainful trade
6、refer to the following table, according to the principle of comparative advantage, table: output possibilities for south korea and japan output per worker per day country tons of steel vcrs south korea 80 40 japan 20 20 a、south korea should export steel b、south korea should export steel and vcrs c、japan should export steel d、japan should export steel and vcrs
7、the ricardian model demonstrates that a、trade between two countries will benefit both countries. b、trade between two countries may benefit both regardless of which good each exports. c、trade between two countries may benefit both if each exports the product in which it has a comparative advantage. d、trade between two countries may benefit one but harm the other.
8、in the ricardian model, comparative advantage is likely to be due to _____. a、scale economies. b、home product taste bias. c、greater capital availability per worker. d、labor productivity differences.
9、given the information in the following table, foreign's opportunity cost of widgets is_____. a、0.5 b、2.0. c、6.0. d、1.5.
10、in a two-product, two-country world, international trade can lead to increases in_________. a、consumer welfare only if output of both products is increased. b、output of both products and consumer welfare in both countries. c、total production of both products but not consumer welfare in both countries. d、consumer welfare in both countries but not total production of both products.
11、trade between two countries can benefit both countries if a、each country exports that good in which it has a comparative advantage. b、each country enjoys superior terms of trade. c、each country has a more elastic demand for the imported goods. d、each country has a more elastic supply for the exported goods.
12、a country engaging in trade according to the principles of comparative advantage gains from trade because it ________. a、is producing exports indirectly more efficiently than it could alternatively. b、is producing imports indirectly more efficiently than it could domestically. c、is producing exports using fewer labor units. d、is producing imports indirectly using fewer labor units.
13、the earliest statement of the principle of comparative advantage is associated with a、david hume. b、david ricardo. c、adam smith. d、eli heckscher.
14、the ricardian model attributes the gains from trade associated with the principle of comparative advantage result to _________. a、differences in technology. b、differences in preferences. c、differences in labor productivity. d、differences in resources.
15、in the ricardian model, comparative advantage is likely to be due to ________. a、scale economies. b、home product taste bias. c、greater capital availability per worker. d、labor productivity differences.
03 neoclassical trade theory
3.1 specific factors model (1)随堂测验
1、in the specific factors model, a 5% increase in the price of food accompanied by a 0% increase in the price of cloth will cause wages to ________, the production of cloth to ________, and the production of food to ________. a、remain constant; decrease; decrease b、increase by less than 5%; decrease; increase c、remain constant; increase; increase d、increase by more than 5%; increase; remain unchanged
2、in the specific factors model, which of the following will increase the quantity of labor used in food production? a、an increase in the price of cloth relative to that of food b、an increase in the price of food relative to that of cloth c、a decrease in the price of labor d、an equal percentage increase in the price of food and cloth
3、in the specific factors model, a 5% increase in the price of food accompanied by a 5% increase in the price of cloth will cause wages to ________, the production of cloth to ________, and the production of food to ________. a、increase by more than 5%; increase; remain unchanged b、increase by 5%; remain unchanged; remain unchanged c、remain constant; decrease; decrease d、remain constant; increase; increase
3.2 specific factors model (2)随堂测验
1、in the specific factors model, the effects of trade on welfare are ________ for mobile factors, ________ for fixed factors used to produce the exported good, and ________ for fixed factors used to produce the imported good. a、ambiguous; positive; negative b、positive; positive; positive c、ambiguous; negative; positive d、positive; ambiguous; ambiguous
2、in the specific factors model, the effects of trade on welfare overall are ________ and for fixed factors used to produce the exported good they are ________. a、positive; positive b、positive; ambiguous c、negative; positive d、positive; negative
3、the overall welfare effects of trade are ________ if ________. a、positive; the domestic economy grows faster than do foreign economies b、positive; more people gain from trade than lose from it c、negative; some people are made worse off by trade d、positive; those who gain can compensate those who lose and still be better off
3.3 heckscher-ohlin model (1)随堂测验
1、the heckscher-ohlin model differs from the ricardian model of comparative advantage in that the former _________. a、has only two countries. b、has only two products. c、has two factors of production. d、has two production possibility frontiers (one for each country).
2、in the 2-factor, 2-good heckscher-ohlin model, an influx of workers from across the border would ________. a、move the point of production along the production possibility curve. b、shift the production possibility curve outward, and increase the production of both goods. c、shift the production possibility curve outward and decrease the production of the labor-intensive product. d、shift the production possibility curve outward and decrease the production of the capital-intensive product.
3、in the 2-factor, 2-good heckscher-ohlin model, the country with a relative abundance of ________ will have a production possibility frontier that is biased toward production of the ________ good. a、labor; labor intensive b、labor; capital intensive c、land; labor intensive d、land; capital intensive
3.4 heckscher-ohlin model (2)随堂测验
1、in the 2-factor, 2-good heckscher-ohlin model, trade will ________ the owners of a country's ________ factor and will ________ the good that uses that factor intensively. a、benefit; abundant; export b、harm; abundant; import c、benefit; scarce; export d、benefit; scarce; import
2、assume that only two countries, a and b, exist. refer to the table above. if good s is capital intensive, then following the heckscher-ohlin theory _____. a、country b will export good s. b、country a will export good s. c、both countries will export good s. d、trade will not occur between these two countries.
3、suppose that there are two factors, capital and land, and that the united states is relatively land endowed while the european union is relatively capital-endowed. according to the heckscher-ohlin model, _______. a、european landowners should support u.s.-european free trade. b、the u.s. should compensate european countries once trade commences. c、european capitalists should support u.s.-european free trade. d、all landowners should support free trade.
3.5 factor-price equalization随堂测验
1、if australia has more land per worker, and belgium has more capital per worker, then if trade began between these two countries, __________. a、the real income of labor in australia would decline. b、the real income of labor in belgium would decline. c、the real income of landowners in belgium would decline. d、the real income of capital owners in australia would increase.
2、the heckscher-ohlin model predicts all of the following except ___________. a、that relative wages will tend to become equal in both trading countries. b、which factor of production within each country will gain from trade. c、which country will export which product. d、the volume of trade.
3、if japan is relatively capital rich and the united states is relatively land rich, and if food is relatively land intensive then trade between these two, formerly autarkic countries will result in ____________. a、a global increase in the relative price of food. b、an increase in the relative price of food in the u.s. c、a decrease in the relative price of food in both countries. d、an increase in the relative price of food in japan.
3.6 leontief paradox随堂测验
1、the leontief paradox provided: _______________. a、support for the principle of absolute advantage b、support for the factor endowment model c、evidence against the factor endowment model d、evidence against the principle of absolute advantage
2、which one of the following could not theoretically be offered to help in explaining the “leontief paradox?” a、a relatively strong u.s. demand for relatively labor-intensive goods b、relatively high u.s. tariffs on relatively labor-intensive imports c、u.s. importation of goods that are relatively natural resource-intensive in their production processes d、a relatively strong u.s. demand for relatively capital-intensive goods and/or a relatively strong foreign demand for relatively labor-intensive goods
3、suppose that, in a real-world situation, a labor-abundant country’s tariffs and nontariff barriers are levied relatively more heavily on labor-intensive goods than on capital-intensive goods. in this situation, a leontief two-factor test would, other things equal, be __________ the country’s adherence to the heckscher-ohlin trade pattern, in comparison with a situation where trade barriers were absent. a、biased toward confirming b、biased against confirming c、unbiased in its finding concerning d、biased toward confirming, biased against confirming, or unbiased in its finding concerning – cannot be determined without more information
03 neoclassical trade theory
1、in the specific factors model, a 5% increase in the price of food accompanied by a 1% increase in the price of cloth will cause ________ in the welfare of labor, ________ in the welfare of the fixed factor in the production of food, and ________ in the welfare of the fixed factor in the production of cloth. a、an increase; a decrease; an increase b、an ambiguous change; an increase; a decrease c、an ambiguous change; an ambiguous change; an ambiguous change d、a decrease; an ambiguous change; an ambiguous change
2、the slope of a country's production possibility frontier with cloth measured on the horizontal and food measured on the vertical axis in the specific factors model is equal to ________ and it ________ as more cloth is produced. a、-mplc/mplf; becomes steeper b、-mplf/mplc; becomes steeper c、-mplc/mplf; is constant d、-mplf/mplc; becomes flatter
3、under perfect competition, the equilibrium price of labor used to produce cloth will be equal to ________. a、the marginal product of labor in the production of cloth times the price of cloth. b、the ratio of the marginal product of labor in the production of cloth to the marginal product of labor in the production of food times the ratio of the price of cloth to the price of food. c、the slope of the production possibility frontier. d、the average product of labor in the production of cloth times the price of cloth.
4、according to the heckscher-ohlin model, the source of comparative advantage is a country's ______. a、factor endowments. b、technology. c、advertising. d、human capital.
5、according to the heckscher-ohlin model ________. a、the gainers from trade could compensate the losers and still retain gains. b、everyone gains from trade. c、the scarce factor gains from trade and the abundant factor loses. d、a country gains from trade if its exports have a high value added.
6、if a good is labor intensive it means that the good is produced ____________. a、using relatively more labor than goods that are not labor intensive. b、using labor as the only input. c、using more labor per unit of output than goods that are not labor intensive. d、using labor such that the total cost of labor is greater than the total cost of capital.
7、in the heckscher-ohlin model, when there is international-trade equilibrium ___________. a、the capital-rich country will charge more for the capital-intensive good than the price paid by the capital-poor country for the capital-intensive good. b、workers in the capital-rich country will earn more than those in the poor country. c、the workers in the capital-rich country will earn less than those in the poor country. d、the relative price of the capital-intensive good in the capital-rich country will be the same as that in the capital-poor country.
8、factors tend to be specific to certain uses and products a、in capital-intensive industries. b、in labor-intensive industries. c、in the short run. d、in countries lacking fair labor laws.
9、empirical observations on actual north-south trade patterns tend to a、support the validity of the rybczynski theorem. b、support the validity of the wage equalization theorem. c、support the validity of the neo-imperialism exploitation theory. d、support the validity of the leontief paradox. e、support the validity of the heckscher-ohlin model.
10、according to the factor endowment model, countries heavily endowed with land will: __________. a、devote excessive amounts of resources to agricultural production b、devote insufficient amounts of resources to agricultural production c、export products that are land-intensive d、import products that are land-intensive
11、the ricardian model of international trade demonstrates that trade can be mutually beneficial. why, then, do governments restrict imports of some goods? a、the ricardian model is often incorrect in its prediction that trade can be mutually beneficial. b、import restrictions are the result of trade wars between hostile countries. c、trade can have substantial effects on a country's distribution of income. d、imports are only restricted when foreign-made goods do not meet domestic standards of quality.
12、international trade can have important effects on the distribution of income because ________. a、the more powerful country dictates the terms of trade. b、some resources are immobile in the short run. c、different countries use different currencies. d、of government corruption.
13、the ricardian model of international trade demonstrates that trade can be mutually beneficial. why, then, do governments restrict imports of some goods? a、import restrictions are the result of trade wars between hostile countries. b、trade can have significant harmful effects on some segments of a country's economy. c、restrictions on imports can have significant beneficial effects on domestic consumers. d、the ricardian model is often incorrect in its prediction that trade can be mutually beneficial.
14、international trade can have important effects on the distribution of income because ________. a、different industries employ different factors of production. b、rich countries take advantage of poor countries. c、of government corruption. d、different countries use different currencies.
15、in the specific factors model, labor is defined as a(an) _____. a、intensive factor. b、mobile factor. c、variable factor. d、fixed factor.
04 the standard trade model
4.1 a standard trade model (1)随堂测验
1、a country cannot produce a mix of products with a higher value than where a、the isovalue line is above the production possibility frontier. b、the isovalue line is below the production possibility frontier. c、the isovalue line is tangent with the indifference curve. d、the isovalue line is tangent to the production possibility frontier.
2、tastes of individuals are represented by a、isovalue lines. b、production possibility frontiers. c、production functions. d、indifference curves.
4.2 a standard trade model (2)随堂测验
1、if points a and b are two locations on a country's production possibility frontier, then a、at any point in time, the country could produce both. b、both bundles must have the same relative cost. c、consumers are indifferent between the two bundles. d、the country could produce either of the two bundles.
2、a country will be able to consume a combination of goods that is not attainable solely from domestic production if a、the country avoids international trade. b、the country specializes in one product. c、the world terms of trade equal the domestic relative costs. d、the world terms of trade differ from its domestic relative costs.
4.3 the effects of economic growth随堂测验
1、if the economy is producing at point a on its production possibility frontier, then a、all of its capital is used, but not efficiently. b、all of the country's capital is used for one product. c、all of the country's workers are employed. d、all of the country's workers are specialized in one product.
2、suppose that a country experiences growth strongly biased toward its export, cloth, a、this will tend to leave the country's terms of trade unchanged. b、this will tend to improve the country's terms of trade. c、this will increase the price of cloth relative to the imported good. d、this will tend to worsen the country's terms of trade.
4.4 the effects of import tariffs and export subsidies随堂测验
1、an import tariff will cause the relative demand for ________ to ________ and the relative supply for ________ to ________. a、exports; decrease; exports; increase b、imports; increase; imports; decrease c、exports; increase; exports; decrease d、imports; decrease; imports; increase
2、an export subsidy will cause the relative demand for ________ to ________ and the relative supply for ________ to ________. a、imports; decrease; imports; increase b、exports; increase; imports; decrease c、exports; increase; exports; decrease d、exports; decrease; exports; increase
04 the standard trade model
1、the meaning of "terms of trade" is a、the amount of exports sold by a country. b、the tariffs in place between two trading countries. c、the quantities of imports received in free trade. d、the price of a country's exports divided by the price of its imports.
2、if the ratio of price of cloth (pc) divided by the price of food (pf) increases in the international marketplace, then a、the terms of trade of food exporters will improve. b、the terms of trade of all countries will improve. c、the terms of trade of cloth exporters will worsen. d、the terms of trade of cloth exporters will improve.
3、refer to the figure below, which shows a country's possible production possibility frontiers and indifference curves. if the country is producing at ________, then moving to ________ will cause utility to ________. a、point c; point b; decrease b、point b; point c; remain unchanged c、point a; point b; increase d、point a; point c; remain unchanged
4、4) refer to the figure below, which shows a country's possible production possibility frontiers and indifference curves. if the country is producing at ________, then moving to ________ will cause utility to ________. a、point c; point b; remain unchanged b、point a; point b; increase c、point c; point b; increase d、point c; point b; decrease
5、refer to the figure below, which shows a country's possible production possibility frontiers and indifference curves. if the country is producing at ________, then moving to ________ will cause utility to ________. a、point b; point a; increase b、point a; point b; increase c、point c; point b; increase d、point c; point b; decrease
6、an increase in a country's net commodity terms of trade will a、not always guarantee positive changes in the country's economy. b、always increase the country's economic welfare. c、always increase the country's real income. d、never increase the country's quantity of exports.
7、an import tariff will cause the terms of trade of the ________ country to ________ and will ________ the country. a、importing; improve; benefit b、importing; improve; harm c、exporting; improve; benefit d、exporting; improve; harm
8、an export subsidy will cause the terms of trade of the ________ country to ________ and will ________ the country. a、importing; suffer; benefit b、importing; improve; harm c、exporting; suffer; harm d、importing; suffer; harm
9、if slovenia were a large country in world trade, then if it imposes a large set of tariffs on its imports, this must a、decrease the internal price of imports below the world market rate. b、improve the real income of its trade partners. c、harm slovenia's real income. d、improve slovenia's real income.
10、if slovenia were a large country in world trade, then if it instituted a large set of subsidies for its exports, this must a、have no effect on its terms of trade. b、harm world terms of trade. c、harm its terms of trade. d、decrease its marginal propensity to consume.
11、if the ratio of price of cloth (pc) divided by the price of food (pf) increases in the international marketplace, then a、the country would import more cloth. b、the food exporter will increase the quantity of food exported. c、the cloth exporter will increase the quantity of cloth produced. d、the cloth exporter will increase the quantity of cloth exported.
12、an increase in a country's net commodity terms of trade will a、not always guarantee positive changes in the country's economy. b、always increase the country's economic welfare. c、always increase the country's real income. d、never increase the country's quantity of exports.
13、if slovenia is a large country in world trade, then if it imposes a large set of tariffs on many of its imports, this would a、increase its exports. b、have no effect on its terms of trade. c、harm its terms of trade. d、improve its terms of trade.
14、if slovenia were a large country in world trade, then if it instituted a large set of subsidies for its exports, this must a、increase internal prices above the world market rate. b、harm slovenia's real income. c、improve slovenia's real income. d、improve the real income of its trade partners.
15、if a small country were to levy a tariff on its imports then this would a、decrease the country's economic welfare. b、change the terms of trade. c、have no effect on that country's economic welfare. d、raise prices on its exports in other countries.
05 new trade theory and frontier of trade theory
5.1 external economies of scale and trade随堂测验
1、external economies may exist for a few reasons, excluding ________. a、comparative advantage b、specialized equipment or services c、labor pooling d、knowledge spillovers
2、it is a case of internal economies of scale: all airframes for airbus, europe’s only producer of large aircraft, are assembled in toulouse.
5.2 introduction and imperfect competition随堂测验
1、internal economies of scale implies that small firms have a cost advantage over large firms, causing the industry to become uncompetitive.
2、monopolistic competition is a simple model of an imperfectly competitive industry that assumes that each firm can differentiate its product from the product of competitors, and takes the prices charged by its rivals as give.
5.3 review of monopolistic competition equilibrium随堂测验
1、in monopolistic competition, as the number of firms n in the industry increases, the price that each firm charges decreases because of increased competition.
2、in monopolistic competition the equilibrium price and number of firms occurs when price equals average cost.
5.4 new trade theory (1)随堂测验
1、in monopolistic competition model, welfare benefits from intra-industry trade includes _________. a、a greater variety b、a lower price c、wider gap between the rich and the poor d、equalization of income
2、product differentiation and internal economies of scale lead to trade between similar countries with no comparative advantage differences between them.
5.5 new trade theory (2)随堂测验
1、after trade, the better-performing firms expand and the worse-performing ones contract or exit, and thus overall industry performance improves.
2、the impact of trade on firms in monopolistic competition is homogenous between low-cost firms and high-cost firms.
5.6 new new trade theory随堂测验
1、a major reason why only a subset of firms export is that trade costs drastically reduce the number of firms selling to customers across the border.
2、exporting firms are bigger and more productive than firms in the same industry that do not export.
5.7 multinationals and outsourcing随堂测验
1、if a foreign company invests in at least 10% of the stock in a subsidiary, the two firms are typically classified as a multinational corporation.
2、horizontal fdi is mainly driven by production cost differences between countries (for those parts of the production process that can be performed in another location).
05 new trade theory and frontier of trade theory
1、if a firm's output less than doubles when all inputs are doubled, production is said to occur under conditions of a、increasing returns to scale. b、imperfect competition. c、intra-industry equilibrium. d、decreasing returns to scale.
2、the existence of external economies of scale _______. a、tends to result in large profits for each firm. b、may be associated with a perfectly competitive industry. c、cannot be associated with a perfectly competitive industry. d、tends to result in one huge monopoly.
3、the primary determinant of patterns of interregional trade is ______. a、accidents of history. b、centralized optimization. c、resource allocations. d、weather.
4、when a country both exports and imports a type of commodity, the country is engaged in _______. a、inter-industry trade. b、an attempt to monopolize the relevant industry. c、increasing returns to scale. d、intra-industry trade.
5、firms that produce ________ products must be ________ competitive. a、differentiated; imperfectly b、differentiated; perfectly c、exported; imperfectly d、standardized; imperfectly
6、if the market for products produced by firms in a monopolistically competitive industry becomes ________, then there will be ________ firms and each firm will produce ________ output and charge a ________ price. a、larger; fewer; more; higher b、larger; more; less; higher c、larger; fewer; more; lower d、larger; more; more; lower
7、a monopoly firm engaged in international trade will ____________. a、equate marginal costs with the highest price the market will bear. b、equate average to local costs. c、equate marginal costs with foreign marginal revenues. d、equate marginal costs with marginal revenues in both domestic and foreign markets.
8、an industry is characterized by scale economies, and exists in two countries. should these two countries engage in trade such that the combined market is supplied by one country's industry, then _______. a、consumers in both countries would have more varieties and lower prices. b、consumers in both countries would have higher prices and fewer varieties. c、consumers in the exporting country only would have higher prices and fewer varieties. d、consumers in both countries would have fewer varieties at lower prices.
9、a product is produced in a monopolistically competitive industry with scale economies. if this industry exists in two countries, and these two countries engage in trade with each other, then we would expect ___________. a、the country with a relative abundance of the factor of production in which production of the product is intensive will export this product. b、the countries will trade only with other nations they are not in competition with. c、the country in which the price of the product is lower will export the product. d、each country will export different varieties of the product to the other.
10、intra-industry trade will tend to dominate trade flows when which of the following exists? a、large differences between relative country factor availabilities b、small differences between relative country factor availabilities c、uneven distribution of abundant resources between two countries d、homogeneous products that cannot be differentiated
11、in the model of monopolistic competition, if firms have ________ average cost curves, then opening trade will ________ the total number of firms and ________ the average price. a、downward sloping; decrease; decrease b、downward sloping; decrease; increase c、upward sloping; decrease; increase d、downward sloping; increase; decrease
12、in the model of monopolistic competition, an increase in industry output will cause individual firms' demand curves to become ________, which will ________ demand for higher-priced goods and ________ demand for lower-priced goods. a、steeper; reduce; increase b、steeper; increase; reduce c、horizontal; reduce; reduce d、flatter; reduce; increase
13、in the model of monopolistic competition, trade costs between countries cause ____________. a、marginal costs of exported goods to exceed the marginal costs of goods sold domestically. b、all firms that can earn a profit on domestic sales to export their goods at higher prices. c、countries to negotiate the elimination of trade costs by mutual subsidization of trade. d、marginal costs of goods sold domestically to exceed the marginal costs of exported goods.
14、when a multinational affiliate replicates production in a foreign country it is called ________ foreign direct investment. a、bisectional b、direct c、horizontal d、transitional
15、a firm's foreign direct investment. decisions are, in the case of horizontal fdi, strongly influenced by ________ and, in the case of vertical fdi, strongly influenced by ________. a、materials costs; labor costs b、trade costs; production costs c、labor costs; trade costs d、production costs; trade costs
06 trade protection theory
6.1 infant-industry protection theory随堂测验
1、a problem encountered when implementing an "infant industry" tariff is that: a、domestic consumers will purchase the foreign good regardless of the tariff. b、political pressure may prevent the tariff's removal when the industry matures. c、most industries require tariff protection when they are mature. d、labor unions will capture the protective effect in higher wages.
2、of the many arguments in favor of tariffs, the one that has enjoyed the most significant economic justification has been the: a、infant industry argument. b、cheap foreign labor argument c、balance of payments argument d、domestic living standard argument
6.2 foreign trade multiplier theory随堂测验
1、the macroeconomic interpretation of a trade deficit for a country utilizes which one of the following expressions (where y = national income, c = consumption, i = investment, g = government spending on goods and services, x = exports, and m = imports)? a、y (c i g) = (x - m) b、(c i g) - y = (x - m) c、(c i) - g - y = (m – x) d、y - (c i g) = (x - m)
2、keynesianism actively advocates state intervention in the economy and implementation of trade protection policies.
6.3 strategic trade protection theory随堂测验
1、given the following “payoff matrix” for two interdependent firms in duopoly, where the figure in the lower left of each box shows firm h's profit and the figure in the upper right of each box shows firm f's profit: in this situation firm f will __________. a、always produce b、never produce c、produce only if its cost of production is less than $120 d、never produce if its cost of production exceeds $10
2、given the following “payoff matrix” for two interdependent firms in duopoly, where the figure in the lower left of each box shows firm h's profit and the figure in the upper right of each box shows firm f's profit. firm h __________ a “dominant strategy” and firm f __________ a “dominant strategy.” a、has; also has b、has; does not have c、does not have; has d、does not have; also does not have
06 trade protection theory
1、the brander-spencer model identified market failure in certain industries due to __________. a、unfair competition. b、wildcat destructive competition. c、environmental negative externalities associated with pollution. d、limited competition.
2、in the brander-spencer model the subsidy raises profits by more than the subsidy because of __________. a、the "multiplier" effect of government expenditures. b、the military-industrial complex. c、the forward and backward linkage effects of certain industries. d、the deterrent effect of the subsidy on foreign competition.
3、criticisms of the brander-spencer model include all except which of the following? a、the problem of insufficient information b、the problem of likely foreign retaliation c、the problem of harm to interests of consumers d、the problem of adverse effects of trade policy politics
4、the heckscher-ohlin, factor-proportions model lends support to the argument that _________ . a、trade tends to worsen the conditions of unskilled labor in rich countries. b、trade tends to worsen the conditions of owners of capital in rich countries. c、trade tends to worsen the conditions of workers in poor countries. d、trade tends to worsen the conditions of workers in rich countries.
5、if firms in an industry are generating knowledge that other firms can use without paying for it, this industry is characterized by ___________. a、social costs that exceed private costs. b、social benefits that exceed private benefits. c、social costs that exceed social benefits. d、private benefits that exceed social benefits.
6、it is argued that high-tech industries typically generate new technologies but cannot fully appropriate the commercial benefits associated with their inventions or discoveries. if this is true, then in order to maximize a country's real income, the government should ___________. a、tax the high-tech firms. b、subsidize the high-tech firms. c、protect the high-tech firms. d、outsource high-tech production.
7、the best economic case one can make for an active industrial policy involves ___________. a、the national security argument. b、the technological spillover argument. c、the environment preservation argument. d、raising the national income.
8、spencer and brander's model highlights the existence of ______________. a、aircraft industries. b、excess returns present in highly competitive markets. c、excess returns, or rents, available in non-competitive markets. d、the futility of government bureaucrats' attempts to build an airplane.
9、spencer and brander's model highlights the conventional assumption that ____________. a、government involvement in business or in the economy tends to fail. b、government subsidies tend to waste taxpayer's money. c、government subsidies cannot create a successfully competing export. d、government subsidies can produce profits that exceed the subsidy's value.
10、the reason airbus succeeded in the brander spencer example is that _____________. a、boeing made the first move in this strategic game. b、europeans tend to be better strategists than corn-fed americans. c、the airbus actually was a better plane than the boeing 747. d、the subsidy removed the advantage that boeing gained with their head start in production.
11、the reason airbus succeeded in the brander spencer example is that _______________. a、the european government made an explicit subsidy offer, but the u.s. government did not. b、airbus' prices were better when adjusted for quality and warranty services. c、boeing traditionally refused to undertake any exchange rate risk in its transactions. d、the u.s. acted in accordance with its ideological reliance on market solutions, whereas the europeans ignored market and technological factors.
12、the argument that strategic planning is not likely to be practical due to insufficient information means that _________. a、because of trade secrets, the government does not know true cost relationships in any given industry. b、if the government had all the relevant information in a given industry then it could decide whether a subsidy would enhance the public's welfare. c、even if the government had all the relevant information in a given industry, it still could not decide whether a subsidy would enhance the public's welfare. d、due to recent cuts in the department of the census' sampling budgets, industry surveys are no longer reliable, so that there is no way to determine if a subsidy is in the public's interest.
13、the infant industry argument is that ___________. a、comparative advantage is irrelevant to economic growth. b、developing countries have a comparative advantage in agricultural goods. c、developing countries have a comparative advantage in manufacturing. d、developing countries have a potential comparative advantage in manufacturing.
14、the infant industry argument calls for active government involvement _______________. a、only if the government forecasts are accurate. b、only if some market failure can be identified. c、only if the industry is not one already dominated by industrial countries. d、only if the industry has a high value added.
15、the existence of positive externalities due to the impossibility of full appropriability ____________. a、supports the conclusions of the heckscher-ohlin model. b、rejects the usefulness of government protectionism. c、supports the concept that the government should support only high-tech industries. d、provides support for government protectionism.
07 the instruments of trade policy
7.1 concepts and classification of a tariff随堂测验
1、a tax of 15 percent per imported item would be an example of : ___________. a、ad valorem tariff b、specific tariff c、effective tariff d、compound tariff
2、a $100 specific tariff provides home producers more protection from foreign competition when : _____________. a、the home market buys cheaper products rather than expensive products. b、it is applied to a commodity with many grade variations. c、the home demand for a good is elastic with respect to price changes. d、it is levied on manufactured goods rather than primary products.
7.2 effects of a tariff随堂测验
1、what is a true statement concerning the imposition in the u.s. of a tariff on cheese? a、it lowers the price of cheese domestically. b、it raises the price of cheese internationally. c、it raises revenue for the government. d、it will always result in retaliation from abroad.
2、if a good is imported into (large) country h from country f, then the imposition of a tariff in country h __________. a、raises the price of the good in both countries (the "law of one price"). b、raises the price in country h and cannot affect its price in country f. c、lowers the price of the good in both countries. d、raises the price of the good in h and lowers it in f.
7.3 effective rate of protection随堂测验
1、when a government allows raw materials and other intermediate products to enter a country duty free, this generally results in a(an) ______________. a、effective tariff rate less than the nominal tariff rate. b、nominal tariff rate less than the effective tariff rate. c、rise in both nominal and effective tariff rates. d、fall in both nominal and effective tariff rates.
2、the effective rate of protection measures ___________. a、the "true" ad valorem value of a tariff. b、the quota equivalent value of a tariff. c、the efficiency with which the tariff is collected at the customhouse. d、the protection given by the tariff to domestic value added.
7.4 costs and benefits of a tariff随堂测验
1、the principle benefit of tariff protection goes to ________________. a、domestic consumers of the good produced. b、foreign consumers of the good produced. c、domestic producers of the good produced. d、foreign producers of the good produced.
2、should the home country be "large" relative to its trade partners, its imposition of a tariff on imports would lead to an increase in domestic welfare if the terms of the trade rectangle exceed the sum of the _____________. a、revenue effect plus redistribution effect. b、protective effect plus revenue effect. c、consumption effect plus redistribution effect. d、production distortion effect plus consumption distortion effect.
7.5 import quotas and voluntary export restraints随堂测验
1、if a tariff and an import quota lead to equivalent increases in the domestic price of steel, then: _____________. a、the quota results in efficiency reductions but the tariff does not b、the tariff results in efficiency reductions but the quota does not c、they have identical impacts on how much is produced and consumed d、they have identical impacts on how income is distributed
2、if import licenses are auctioned off to domestic importers in a competitive market, their scarcity value (revenue effect) accrues to : ______________. a、foreign corporations b、foreign workers c、domestic corporations d、the domestic government
7.6 subsidies随堂测验
1、consider the following figure. suppose the world price of steel is given and constant at $200 per ton and the mexican government provides a subsidy of $200 per ton to its steel producers, as indicated by the supply schedule sm (with subsidy). as a result of the subsidy, the welfare loss to mexico due to inefficient domestic production equals: ___________. a、$200 b、$400 c、$600 d、$800
2、an export subsidy differs from a tariff in each of the following ways except ___________. a、a tariff generates revenue. b、a tariff is applied to imports. c、a tariff results in an efficiency loss. d、a tariff is a tax.
07 the instruments of trade policy
1、an import tariff will ________ producer surplus, ________ consumer surplus, ________ government revenue, and ________ overall domestic national welfare. a、increase; decrease; increase; have an ambiguous effect on b、increase; decrease; decrease; decrease c、increase; decrease; have no effect on; have an ambiguous effect on d、increase; decrease; have no effect on; decrease
2、an export subsidy will ________ producer surplus, ________ consumer surplus, ________ government revenue, and ________ overall domestic national welfare. a、increase; decrease; increase; have an ambiguous effect on b、increase; decrease; decrease; decrease c、increase; decrease; have no effect on; have an ambiguous effect on d、increase; decrease; have no effect on; decrease
3、an import quota will ________ producer surplus, ________ consumer surplus, ________ government revenue, and ________ overall domestic national welfare. a、increase; decrease; increase; have an ambiguous effect on b、increase; decrease; decrease; decrease c、increase; decrease; have no effect on; have an ambiguous effect on d、increase; decrease; have no effect on; decrease
4、a voluntary export restraint will ________ producer surplus, ________ consumer surplus, ________ government revenue, and ________ overall domestic national welfare. a、increase; decrease; increase; have an ambiguous effect on b、increase; decrease; decrease; decrease c、increase; decrease; have no effect on; have an ambiguous effect on d、increase; decrease; have no effect on; decrease
5、which trade policy results in the government levying a "two-tier" tariff on imported goods? a、tariff quota b、nominal tariff c、effective tariff d、revenue tariff
6、when the production of a commodity does not utilize imported inputs, the effective tariff rate on the commodity: ___________. a、exceeds the nominal tariff rate on the commodity b、equals the nominal tariff rate on the commodity c、is less than the nominal tariff rate on the commodity d、none of the above
7、if the home country's government grants a subsidy on a domestically produced good, domestic producers tend to: ______________. a、capture the entire subsidy in the form of higher profits b、increase their level of production c、reduce wages paid to domestic workers d、consider the subsidy as an increase in production cost
8、import quotas tend to lead to all of the following except: ______________. a、domestic producers of the imported good being harmed b、domestic consumers of the imported good being harmed c、prices increasing in the importing country d、prices falling in the exporting country
9、a lower tariff on imported aluminum would most likely benefit: ___________. a、foreign producers at the expense of domestic consumers b、domestic manufacturers of aluminum c、domestic consumers of aluminum d、workers in the domestic aluminum industry
10、consider the following figure. the deadweight cost of the tariff totals: ___________. a、$60 b、$70 c、$80 d、$90
11、specific tariffs are _____________. a、import taxes stated in specific legal statutes. b、import taxes calculated as a fixed charge for each unit of imported goods. c、import taxes calculated as a fraction of the value of the imported goods. d、the same as import quotas.
12、ad valorem tariffs are ___________. a、import taxes stated in ads in industry publications. b、import taxes calculated as a fixed charge for each unit of imported goods. c、import taxes calculated as a fraction of the value of the imported goods. d、the same as import quotas.
13、a specific tariff provides home producers more protection when ___________. a、the home market buys cheaper products rather than expensive products. b、it is applied to a commodity with many grade variations. c、the home demand for a good is elastic with respect to price changes. d、it is levied on manufactured goods rather than primary products.
14、a lower tariff on imported steel would most likely benefit _________________. a、foreign producers at the expense of domestic consumers. b、domestic manufacturers of steel. c、domestic consumers of steel. d、workers in the steel industry.
15、which of the following is a fixed percentage of the value of an imported product? a、specific tariff b、ad valorem tariff c、nominal tariff d、effective protection tariff
08 the political economy of trade policy
8.1 the case for free trade随堂测验
1、although the trading countries can benefit from free trade, in the real world few countries have anything approach completely free trade.
2、one of the dynamic gains from free trade involves economies of scale, especially for small nations.
8.2 national welfare argument against free trade随堂测验
1、if production of a good yields extra social benefits not captured as producer surplus, a tariff can increase welfare.
2、changes in a "large" country's economic conditions or trade policies can affect the terms at which it trades with other countries.
8.3 income distribution and trade policy随堂测验
1、political activity on behalf of a group is a public good.
2、in advanced countries, much protectionism is concentrated in agriculture and clothing sectors.
08 the political economy of trade policy
1、the efficiency case made for free trade is that as trade distortions such as tariffs are dismantled and removed ___________. a、government tariff revenue will decrease, and therefore national economic welfare will decrease. b、government tariff revenue will decrease, and therefore national economic welfare will increase. c、deadweight losses for producers and consumers will decrease, hence increasing national economic welfare. d、deadweight losses for producers and consumers will decrease, hence decreasing national economic welfare.
2、the opportunity to exploit economies of scale is one of the gains to be derived by removing tariffs and other trade distortions. these gains will be the result of a decrease in __________. a、world prices of imports. b、the consumption distortion loss triangle. c、the production distortion loss triangle. d、excessive entry and inefficient business practices.
3、judging by the ongoing changes in tariff rates in major trading countries, the world has been experiencing a great __________. a、trade liberalization. b、surge of protectionism. c、lack of progress in the trade-policy area. d、move towards regional integration.
4、the optimum tariff is most likely to apply to __________. a、a small tariff imposed by a small country. b、a small tariff imposed by a large country. c、a large tariff imposed by a small country. d、a large tariff imposed by a large country.
5、the fact that trade policy often imposes harm on large numbers of people, and benefits only a few may be explained by _____________. a、the lack of political involvement of the public. b、the power of advertisement. c、the problem of collective action. d、the basic impossibility of the democratic system to reach a fair solution.
6、small groups may gain at the expense of the majority when ___________. a、voters perceive that there are costs associated with voting. b、small group solidarity is high and there is little “free-riding” within the groups. c、the expected consumer benefits from the policies are small on an individual basis. d、all of the above.
7、it is argued that special interest groups are likely to take over and promote protectionist policies, which may lead to a decrease in national economic welfare. this argument leads to ____________. a、a presumption that in practice a free trade policy is likely to be better than alternatives. b、a presumption that trade policy should be shifted to non-governmental organizations, so as to limit taxpayer burden. c、a presumption that free trade is generally a second-best policy, to be avoided if feasible alternatives are available. d、a presumption that free trade is the likely equilibrium solution if the government allows special interest groups to dictate its trade policy.
8、the median voter model __________. a、works well in the area of trade policy. b、is not intuitively reasonable. c、tends to result in biased tariff rates. d、does not work well in the area of trade policy.
9、protectionism tends to be concentrated in two sectors ___________. a、agriculture and clothing. b、high-tech and national security sensitive industries. c、capital and skill intensive industries. d、industries concentrated in the south and in the midwest of the country.
10、export embargoes cause greater losses to consumer surplus in the target country __________. a、the lesser its initial dependence on foreign produced goods. b、the more elastic is the target country's demand schedule. c、the more elastic is the target country's domestic supply. d、the more inelastic is the target country's supply.
11、the strongest political pressure for a trade policy that results in higher protectionism comes from ___________. a、domestic workers lobbying for import restrictions. b、domestic workers lobbying for export restrictions. c、domestic workers lobbying for free trade. d、domestic consumers lobbying for export restrictions.
12、today u.s. protectionism is concentrated in ___________. a、high-tech industries. b、labor-intensive industries. c、industries in which japan has a comparative advantage. d、computer intensive industries.
13、the quantitative importance of u.s. protection of the domestic clothing industry is best explained by the fact that ____________. a、this industry is an important employer of highly skilled labor. b、this industry is an important employer of low skilled labor. c、most of the exporters of clothing into the u.s. are poor countries. d、this industry is a politically well-organized sector in the u.s.
14、trade theory suggests that japan would gain from a subsidy the united states provides its grain farmers if the gains to japanese consumers of wheat products more than offsets the losses to japanese wheat farmers. this would occur as long as japan ______________. a、is a net importer in bilateral trade flows with the united states. b、is a net importer of wheat. c、has a comparative advantage in wheat. d、has an absolute advantage in producing wheat.
15、the optimum tariff is ____________. a、the best tariff a country can obtain via a wto negotiated round of compromises. b、the tariff, which maximizes the terms of trade gains. c、the tariff, which maximizes the difference between terms of trade gains and terms of trade loses. d、not practical for a large country due to the likelihood of retaliation.
09 foreign trade policy in the developed and developing countries
1、the infant industry argument is that _____________. a、comparative advantage is irrelevant to economic growth. b、developing countries have a comparative advantage in agricultural goods. c、developing countries have a comparative advantage in manufacturing. d、developing countries have a potential comparative advantage in manufacturing.
2、general equilibrium considerations lead to the realization that import-substituting policies have the effect of ___________. a、discouraging exports. b、encouraging exports. c、encouraging an efficient use of a country's resources. d、generating large tariff revenues for the government.
9.2 export oriented industrialization随堂测验
1、exported-oriented industrialization can be successful because: ___________. a、it focusses on substituting imports by domestic production b、it focusses on the fulling opening of domestic market c、it focusses on gradually opening its domestic market d、it focusses on gradually opening the imports and emphasize on export
2、education is not important for the creation of east asian rapid growth. true or false?
9.3 u.s. foreign trade policy随堂测验
1、the quantitative importance of u.s. protection of the domestic clothing industry is best explained by the fact that ______________. a、this industry is an important employer of highly skilled labor. b、this industry is an important employer of low skilled labor. c、most of the exporters of clothing into the u.s. are poor countries. d、this industry is a politically well-organized sector in the u.s.
2、the strongest political pressure for a trade policy that results in higher protectionism comes from _________. a、domestic workers lobbying for import restrictions. b、domestic workers lobbying for export restrictions. c、domestic workers lobbying for free trade. d、domestic consumers lobbying for export restrictions.
9.4 instruments of u.s. foreign trade policy随堂测验
1、specific tariffs are _____________. a、import taxes stated in specific legal statutes. b、import taxes calculated as a fixed charge for each unit of imported goods. c、import taxes calculated as a fraction of the value of the imported goods. d、the same as import quotas.
2、ad valorem tariffs are __________. a、import taxes stated in ads in industry publications. b、import taxes calculated as a fixed charge for each unit of imported goods. c、import taxes calculated as a fraction of the value of the imported goods. d、the same as import quotas.
9.5 south korean trade policy (1)随堂测验
1、historically those few developing countries which have succeeded in significantly raising their per-capita income levels ___________. a、did not accomplish this with import-substituting industrialization. b、did accomplish this with import-substituting industrialization. c、tended to provide heavy protection to domestic industrial sectors. d、favored industrial to agricultural or service sectors.
2、statistical evidence suggests that _____________. a、free trade policies promote economic growth more effectively than do import substitution policies. b、import substituting policies tend to promote effective exploitation of scale economies. c、import substitution tends to lead to relatively low effective rates of protection. d、import substitution is to this day the preferred growth strategy promoted by the world bank.
9.6 south korean trade policy(2)随堂测验
1、the development of countries like south korea has been supported by all of the following except ________. a、high domestic interest rates. b、high domestic saving rates. c、large endowments of human capital. d、high levels of labor productivity.
2、the hpae (high performance asian economies) countries ___________. a、have all consistently supported a complete and wholly free trade policies. b、have all consistently maintained import-substitution policies. c、have all consistently maintained non-biased efficient free capital markets. d、have all partly maintained openness to international trade.
09 foreign trade policy in the developed and developing countries
1、ad valorem tariffs are ____________. a、import taxes calculated solely on the origin country. b、import taxes calculated as a fraction of the value of the imported goods. c、import taxes stated in ads in industry publications. d、import taxes calculated as a fixed charge for each unit of imported goods.
2、a problem encountered when implementing an "infant industry" tariff is that ___________. a、domestic consumers will purchase the foreign good regardless of the tariff. b、the industry may never "mature." c、most industries require tariff protection when they are mature. d、the tariff may hurt the industry's domestic sales.
3、in the country levying the tariff, the tariff will ___________. a、increase both consumer and producer surplus. b、decrease both the consumer and producer surplus. c、decrease consumer surplus and increase producer surplus. d、increase consumer surplus and decrease producer surplus.
4、if the tariff on computers is not changed, but domestic computer producers shift from domestically produced semiconductors to imported components, then the effective rate of protection in the computer industry will _____________. a、increase. b、decrease. c、remain the same. d、depend on whether computers are pcs or "supercomputers."
5、when a government allows raw materials and other intermediate products to enter a country duty free, this generally is considered as a important part of : ___________. a、export-oriented industrialization policy b、import substitution industrialization policy c、trade liberalization d、antidmmping
6、while organization determines procedures for the settlement of international trade disputes? a、world bank b、international monetary organization c、international monetary organization d、wto
7、the quantitative importance of u.s. protection of the domestic clothing industry is best explained by the fact that ____________. a、the industry is an important employer of high skilled labor b、this industry is an important employer of low skilled labor c、most of the exporters of clothing into the u.s. are poor countries d、the technology involved is very advanced
8、the south korea’s "economic miracle" illustrates a clear case in which ____________. a、exports and growth were positively related. b、exports were promoted by successful economic growth. c、economic growth was determined by successful export promotion. d、trade policy dominated other considerations in promoting economic growth.
9、the "east asian miracle" of the "four tigers" in the 1960s was replicated by ___________. a、developing countries around the world. b、other east asian countries. c、sub sahara african countries. d、industrialized countries.
10、the growth successes of the high performance asian economies _____________. a、supports the belief that economic development requires import substitution policies. b、rejects the belief that export-oriented industrialization is likely to promote economic development. c、rejects the belief that economic development requires import substitution policies. d、suggests that free trade policies are required for successful economic development.
11、which trade strategy have developing countries used to restrict imports of manufactured goods so that the domestic market is preserved for home producers? a、international commodity agreement b、export promotion c、multilateral contract d、import substitution
12、growth rates in brazil and other latin american countries have actually been slower since the trade liberalization of the late 1980s than they were during import-substituting industrialization ___________________. a、proves that export promoting trade policy leads to relatively rapid economic growth. b、proves that a free-trade orientation of trade policy results in rapid economic growth. c、proves that exports help growth, whereas imports impede growth. d、does not prove that trade liberalization always leads to rapid economic growth.
13、the imperfect capital market justification for infant industry promotion _________________. a、assumes that new industries will tend to have low profits. b、assumes that infant industries will soon mature. c、assumes that infant industries will be in products of comparative advantage. d、assumes that banks can allocate resources efficiently.
14、the infant industry argument is that ____________. a、comparative advantage is irrelevant to economic growth. b、developing countries have a comparative advantage in agricultural goods. c、developing countries have a comparative advantage in manufacturing. d、developing countries have a potential comparative advantage in manufacturing.
15、import substitution policies make use of ____________. a、tariffs that discourage goods from entering a country. b、quotas applied to goods that are shipped abroad. c、production subsidies granted to industries with comparative advantage. d、tax breaks granted to industries with comparative advantage.
10 controversies in trade policy
10.1 globalization and low-wage labor随堂测验
1、faced with the evidence of poor working conditions and low wages in the border maquiladoras, economists __________. a、shrug their shoulders and ignore the issue. b、agree that trade theory is thus proven hollow and internally inconsistent. c、argue that u.s. consumers should not consume lettuce. d、argue that the poor conditions and low wages are actually improvements for the mexican workers, and may be cited as gains-from-trade.
2、labor standards in trade are strongly opposed by most developing countries.
10.2 globalization and the environment随堂测验
1、rich countries usually impose stricter regulations to protect environment.
2、the objective of carbon tariffs on imports is to give countries with lax regulations an incentive to adopt strict climate-change policies.
10 controversies in trade policy
1、in the second half of the 1990s a rapidly growing movement focused on the harm caused by international trade to ___________. a、land owners in poor countries. b、capital owners in rich industrialized countries. c、land owners in rich industrialized countries. d、production workers in both rich and poor countries.
2、low wages and poor working conditions in many u.s. trade partners ____________. a、prove that the gains-from-trade arguments of the ricardian model are false. b、may be a fact of life, but economists don't care. c、are facts emphasized by u.s. labor in its contract negotiations. d、prove that the gains-from-trade arguments of the ricardian model are true.
3、the fact that articles of clothing sold in walmart are produced by very poorly paid workers in honduras, is a fact that if taken into account _____________. a、would prove to economists that the ricardian model of comparative advantage is false. b、would prove to economists that the equal-value in trade concept summed up in the trade triangles is incorrect. c、proves to economists that trade is a negative sum game. d、proves to the anti-globalization movement that trade is a negative sum game.
4、the ship-breakers of alang are ____________. a、a metaphysical representation of the wto, deriving from edgar rice burroughs' princess of mars. b、an early version of the russian ice-breaker of the dnieper-alang class. c、a capital-intensive industry. d、competing with pollution-producing industries in countries outside of india.
5、the ship-breakers of alang arouse the ire of greenpeace because of ____________. a、india's non-repentant nuclear stance. b、india's import-competing industrialization policies. c、the difficulty of avoiding ship accidents between green peace’s sailboat and the reconstructed container ships of alang. d、the large amount of pollution associated with the operations at alang.
6、in today's world markets, poor developing countries tend to rely primarily on exports of ___________. a、agricultural products. b、primary products. c、mineral products. d、manufactured products.
7、the ricardian model of comparative advantage lends support to the argument that ____________. a、trade tends to worsen the conditions of unskilled labor in rich countries. b、trade tends to worsen the conditions of owners of capital in rich countries. c、trade tends to worsen the conditions of workers in poor countries. d、trade is mutually beneficial to the countries that engage in it.
8、most developing countries oppose including labor standards in trade agreements because ____________. a、they believe this would involve a loss of their national sovereignty. b、they believe this would limit their ability to export to rich markets. c、they believe this would create an uneven playing field. d、multinational corporations control them.
9、the evidence usually cited to prove that globalization hurts workers in developing countries ____________. a、is inconclusive due to poor statistical design of the underlying samples. b、is inconclusive due to the poorly funded central statistical office of mexico. c、is inconclusive due to the ambiguous theoretical implications of the findings. d、is conclusive.
10、when one applies the heckscher-ohlin model of trade to the issue of trade-related income redistributions, one must conclude that north-south trade, such as u.s.-mexico trade, ______________. a、must help low-skilled workers on both sides of the border. b、is likely to hurt high-skilled workers in the u.s. c、is likely to involve higher overall national economic gains that will be greater than any harm done to low-skilled workers in the u.s. d、is likely to hurt low-skilled workers in mexico.
11、working conditions for clothing workers in bangladesh are very poor. if countries refuse to buy clothing from bangladesh in order to encourage change, the effect is likely to be that _______________. a、firms will be forced to comply and workers will be better off. b、firms will refuse to comply, but workers will be better off. c、firms will try to comply and workers will be worse off. d、firms will try to comply and workers will be better off.
12、free trade and globalization is generally believed ____________. a、to cause a degradation in the world's environment. b、to improve the environment by correcting for distortions caused by import competing policies. c、to help spread the best of each country's culture, so as to uplift global cultural standards. d、to help each country safeguard the best of its own culture.
13、the ship-breakers of alang utilize much labor and little capital, thereby supporting the applicability of the _________. a、factor proportions explanation of the sources of comparative advantage. b、specific factor theory of comparative advantage. c、monopolistic competition theory of comparative advantage. d、scale economies theory of comparative advantage.
14、the ship-breakers of alang represent a perfect example of how a developing country can apply the principles of the heckscher-ohlin model, since ______________. a、ship-breaking is generally considered to be a capital-intensive operation and india, being a large country has much capital. b、ship-breaking is a labor-intensive operation in india, and india has many workers since it is such a large country. c、ship-breaking is a labor-intensive operation in india, and india's availability of capital per worker is less than that of its trade partners. d、ship-breaking is a capital-intensive operation elsewhere in the world, and therefore represents a case of a factor intensity reversal.
15、which of the following statements is true? a、free trade is beneficial only if your country is strong enough to stand up to foreign competition. b、free trade is beneficial only if your competitor does not pay unreasonably low wages. c、free trade is beneficial only if both countries have access to the same technology. d、free trade can be beneficial to the economic welfare of all countries involved.
11 multilateral and bilateral trading systems
11.1 what’s the wto?随堂测验
1、1）the goal of wto is to ______. a、ensure that trade flows as smoothly, predictably and freely as possible. b、weaken the economic power of the developed countries. c、promote economic growth in developed countries. d、ensure world peace.
2、wto has two mechanisms, they are dsb and _____. a、value-added trade b、fta. c、policy review mechanism. d、gatt.
11.2 principles of the trading system随堂测验
1、what wto’s principles mean? a、it means the interactions associated with international trade is highly mathematical. b、it means the basic ideas run throughout all of the negotiations, agreements,and so on. c、it means the world trade will be with more competitive and discrimination. d、it means the world trade is more beneficial for less developed countries.
2、while even mfn treatment is important, it has some exceptions,which not include______________. a、free trade agreements. b、generalized system of preferences. c、unfair trade. d、national treatment.
11.3 regional trade agreement随堂测验
1、what is the difference between free trade area and customs union? a、free trade among members. b、fta asks all the members to negotiate for a common external trade policy. c、external trade policy towards non-member countries. d、fta is more popular than customs union.
2、which of following is not ture in viner’s analysis about trade creation and trade diversion? a、it doesn’t have much pratical meaning. b、rta’s welfare effects on non-member countries are clear,that is negative. c、rta’s welfare effects on member countries depend. d、rta’s welfare effects on member countries is clear,that is positive.
11 multilateral and bilateral trading systems
1、since 1994, trade rules have been enforced by ___________. a、the wto. b、the g10. c、the gatt. d、the u.s. congress.
2、the first round negotiation organized by wto is ___________, which has been triggered in 2001. a、doha development round b、the tokyo round c、the uruguay round d、treaty of paris
3、wto conducts trade policy reviews, _____________. a、the frequency of the reviews depends on the country’s economic size. b、but the trade policy review mechanism is less important than dsb. c、it helps to settle disputes. d、not all wto members are to come under scrutiny.
4、what is the most-favored-nation treatment? a、that’s to say if you grant someone a special favor,you have to do the same for all other wto members. b、it means treating others differently. c、that’s to say treating foreigners and locals equally. d、it means imported and locally produced goods should be treated equally after the foreign goods have entered the market.
5、lowering trade barriers is one of the most obvious means of encouraging trade.which of following is not the barriers concerned? a、customs duties. b、tariffs. c、import bans. d、unrestricted trade.
6、the fundamental purpose of making countries’ trade rules as clear and public as possible is ___________. a、improving predictability and stability. b、preventing corruption. c、letting more people know the rules of trade. d、discouraging transparency.
7、how about the development of rtas in the past decades? a、the development of rtas was very slow. b、the development of rtas was fast all the time. c、since 1990,rtas developed fast d、rtas has become the main trend in today's world.
8、in june of 1948,the predecessor of wto, ______ came into force, and provided the rules for world trade system. a、apec b、gatt c、gats d、trips
9、for almost 70 years international trade policies have been governed __________. a、by the world trade organization. b、by the international monetary fund. c、by the world. d、by an international treaty known as the general agreement on tariffs and trade.
10、the wto is _______________. a、an international agreement. b、an international u.n. agency. c、an international imf agency. d、a u.s. government agency.
11、during __________which started in 1986 and ended in 1994, the members of gatt discussed and later decided to create one formal organization to regulate the world trade, that’s the wto. a、the tokyo round b、the kennedy round c、the uruguay round d、doha development round
12、the game theory model has proven that _________________. a、we should just use violence directly. b、we should maximize our own interests. c、we don’t need communication and talk. d、we need talk or coordination.
13、which of the following dose not belong to the umbrella agreement—the marrakesh agreement establishing the wto? a、general agreement on tariffs and trade. b、general agreement on trade in services. c、trans-pacific partnership agreement. d、agreement on trade-related aspects of intellectual property rights.
14、wto just provides a kind of mechanism,which helps to settle disputes,that’s __________. a、trade policy reviews. b、dispute settlement body. c、trade facilitation agreement. d、general agreement on tariffs and trade.
15、a country can raise barriers against products that are considered to be traded unfairly from specific countries, _____________. a、this is absolutely true. b、this is generally false. c、this is generally true if the country gets the authority from the wto. d、this is generally true if the country wants to against specific country.
《international trade》final exam
international trade
1、the gains from international trade increase as: ________________. a、a nation consumes inside of its production possibilities schedule b、a nation consumes along its production possibilities schedule c、the international terms of trade rises above the nation's autarky price d、the international terms of trade approaches the nation's autarky price
2、the introduction of community indifference curves into our trading example focuses attention on the nation's: _____________. a、income level b、resource prices c、tastes and preferences d、productivity level
3、introducing indifference curves into our trade model permits us to determine: ____________. a、where a nation chooses to locate along its production possibilities curve in autarky b、the precise location of a nation's production possibilities curve c、whether absolute cost or comparative cost conditions exist d、the currency price of one product in terms of another product
4、in the absence of trade, a nation is in equilibrium where a community indifference curve: _________________. a、lies above its production possibilities curve b、is tangent to its production possibilities curve c、intersects its production possibilities curve d、lies below its production possibilities curve
5、the use of indifference curves helps us determine the point: _______________. a、along the terms-of-trade line a country will choose b、where a country maximizes its resource productivity c、at which a country ceases to become competitive d、where the marginal rate of transformation approaches zero
6、with trade, a country will maximize its satisfaction when it: _______________. a、moves to the highest possible indifference curve b、forces the marginal rate of substitution to its lowest possible value c、consumes more of both goods than it does in autarky d、finds its marginal rate of substitution exceeding its marginal rate of transformation
7、trade between two nations would not be possible if they have: ____________. a、identical community indifference curves but different production possibilities curves b、identical production possibilities curves but different community indifference curves c、different production possibilities curves and different community indifference curves d、identical production possibilities curves and identical community indifference curves
8、the equilibrium prices and quantities established after trade are fully determinate if we know: _______________. a、the location of all countries' indifference curves b、the shape of each country's production possibilities curve c、the comparative costs of each trading partner d、the strength of world supply and demand for each good
9、a term-of-trade index that equals 90 indicates that compared to the base year: ______________. a、it requires a greater output of domestic goods to obtain the same amount of foreign goods b、it requires a lesser amount of domestic goods to obtain the same amount of foreign goods c、the price of exports has fallen from $100 to $90 d、the price of imports has fallen from $100 to $90
10、if the u.s. (a large country) imposes a tariff on its imported good, this will tend to ____________. a、cause a deterioration of u.s. terms of trade. b、have no effect on terms of trade. c、improve the terms of trade of all countries. d、improve the terms of trade of the united states.
11、monopolistic competition is associated with ____________. a、product differentiation. b、price-taking behavior. c、increasing returns to scale. d、high profit margins in the long run.
12、product differentiation and internal economies of scale yield gains from trade in the form of ____________. a、higher profits and lower trade costs. b、lower production costs and a greater variety of goods. c、the proximity-concentration effect. d、the substitution of immigration for foreign direct investment.
13、a monopolistic firm _________________. a、can sell as much as it wants for any price it determines in the market. b、cannot sell additional quantity unless it raises the price on each unit. c、chooses an output at which marginal revenue equals marginal cost. d、cannot determine the price, which is determined by consumer demand.
14、one advantage of the specialization that results from international trade is that countries can take advantage of ____________. a、scale economies. b、taste reversals. c、production diversification d、smaller countries.
15、given the following “payoff matrix”, suppose airbus is set to produce the aircraft before boeing. in this situation, boeing will __________. a、always produce b、never produce c、produce only if its cost of production is less than $100 d、never produce if its cost of production exceeds $100
16、given the following “payoff matrix”, suppose airbus is set to produce the aircraft before boeing. suppose both governments offer their respective company a subsidy of $4 (million). in this situation: ________________. a、airbus and boeing will produce b、airbus will produce, boeing won’t produce c、airbus and boeing won’t produce d、airbus won’t produce, boeing will produce.
17、given the following “payoff matrix”, suppose airbus is set to produce the aircraft before boeing. suppose both governments offer their respective company a subsidy of $10 (million). in this situation: _____________. a、airbus and boeing will produce b、airbus will produce, boeing won’t produce c、airbus and boeing won’t produce d、airbus won’t produce, boeing will produce.
18、a tax of 20 percent per unit of imported garlic is an example of a(n) ________. a、specific tariff. b、ad valorem tariff. c、nominal tariff. d、effective protection tariff.
19、tariffs are not defended on the grounds that they ____________. a、improve the terms of trade of foreign nations. b、protect jobs and reduce unemployment. c、promote growth and development of young industries. d、prevent over-dependence of a country on only a few industries.
20、the most vocal political pressure for tariffs is generally made by ___________. a、consumers lobbying for export tariffs. b、consumers lobbying for import tariffs. c、consumers lobbying for lower import tariffs. d、producers lobbying for import tariffs.
21、if the tariff on computers is not changed, but the government then adds hitherto nonexistent tariffs on imported semiconductor components, then the effective rate of protection in the computer industry will _____________. a、increase. b、decrease. c、remain the same. d、depend on whether computers are pcs or "supercomputers."
22、in an inflationary environment, then over time ______________. a、a specific tariff will tend to raise more revenue than an ad valorem tariff. b、an ad valorem tariff will tend to raise more revenue than a specific tariff. c、an optimum tariff will tend to raise more revenue than an escalating tariff. d、a tariff quota will tend to raise more revenue than a specific tariff.
23、throughout the post-world war ii era, the importance of tariffs as a trade barrier has _____________. a、increased. b、decreased. c、remained the same. d、fluctuated wildly.
24、if a small country imposes a tariff, then ____________. a、the producers must suffer a loss. b、the consumers must suffer a loss. c、the government revenue must suffer a loss. d、the demand curve must shift to the left.
25、the imposition of tariffs on imports results in deadweight (triangle) losses. these are ___________. a、production and consumption distortion effects. b、redistribution effects. c、revenue effects d、distortion of incentives.
26、the main redistribution effect of a tariff is the transfer of income from __________. a、domestic producers to domestic buyers. b、domestic buyers to domestic producers. c、domestic producers to domestic government. d、domestic government to domestic consumers.
27、the deadweight loss of a tariff ___________. a、is a social loss because it promotes inefficient use of national resources. b、is a social loss because it reduces the revenue of the government. c、is not a social loss because it merely redistributes revenue from one sector to another. d、is not a social loss because it is paid for by rich corporations.
28、a policy of tariff reduction in the computer industry is __________. a、in the interest of the united states as a whole and in the interest of computer producing regions of the country. b、in the interest of the united states as a whole but not in the interest of computer producing regions of the country. c、not in the interest of the united states as a whole but in the interests of computer producing regions of the country. d、not in the interest of the united states as a whole and not in the interests of computer consumers.
29、the fact that industrialized countries levy very low or no tariff on raw materials and semi processed goods ___________. a、helps developing countries export manufactured products. b、has no effect on developing country exports. c、hurts developing country efforts to export manufactured goods. d、hurts developing country efforts to export raw materials.
30、the imposition of tariffs will help a nation attain which of the following goals? a、decreased domestic consumer prices. b、increased domestic employment c、increased amount and variety of goods available for consumers d、gains for domestic producers
31、the change in the economic welfare of a country associated with an increase in a tariff equals _____________. a、efficiency loss - terms of trade gain. b、efficiency gain - terms of trade loss. c、efficiency loss tax revenue gain. d、efficiency loss tax revenue gain terms of trade gain.
32、in the country levying the tariff, the tariff will _____________. a、increase both consumer and producer surplus. b、decrease both the consumer and producer surplus. c、decrease consumer surplus and increase producer surplus. d、increase consumer surplus and decrease producer surplus.
33、an important difference between tariffs and quotas is that tariffs ____________. a、raise the price of the good. b、generate tax revenue for the government. c、stimulate international trade. d、help domestic producers.
34、in the exporting country, an export subsidy will ______________. a、help consumers and raise the overall economic welfare of the exporting country. b、hurt consumers but raise the overall economic welfare of the exporting country. c、hurt consumers and lower the overall economic welfare of the exporting country. d、help consumers but lower economic welfare of the exporting country.
35、an import quota is similar to a ________ in its effect on imports, except that an import quota ________. a、tariff; does not generate revenue b、tariff; generates revenue c、subsidy; does not generate revenue d、subsidy; generates revenue
36、the u.s. sugar quota __________. a、generates government revenue. b、results in net welfare benefits to the u.s. economy. c、results in benefits to sugar producers that exceed the cost to consumers. d、results in costs to consumers that exceed the benefits to sugar producers.
37、suppose the united states and japan enter into a voluntary export agreement in which japan imposes an export quota on its automakers. the largest share of the export quota's "revenue effect" would tend to be captured by: ___________. a、the u.s. government b、japanese automakers c、american auto consumers d、american autoworkers
38、tariffs and quotas on imports tend to involve larger sacrifices in national welfare than would occur under domestic subsidies. this is because, unlike domestic subsidies, import tariffs and quotas: ________________. a、permit less efficient home production b、distort choices for domestic consumers c、result in higher tax rates for domestic residents d、redistribute revenue from domestic producers to consumers
39、because export subsidies tend to result in domestic exporters charging lower prices on their goods sold overseas, the home country's: ______________. a、export revenues will decrease b、export revenues will rise c、terms of trade will worsen d、terms of trade will improve
40、compared to an import quota, an equivalent tariff may provide a less certain amount of protection for home producers since: _____________. a、a tariff has no deadweight loss in terms of production and consumption b、foreign firms may absorb the tariff by offering exports at lower prices c、tariffs are effective only if home demand is perfectly elastic d、quotas do not result in increases in the price of the imported good
41、referring to the following figure, suppose the world price of steel is given and constant at $200 per ton, the mexican government imposes an import quota equal to 2 tons of steel. if the mexican government auctions import licenses to the highest foreign bidder, the overall welfare loss of the quota to mexico equals: ________. a、$200 b、$400 c、$600 d、$800
42、suppose the world price of steel is given and constant at $200 per ton. referring to the following figure, with free trade, mexico's consumer surplus and producer surplus respectively equal: ___________. a、$2000 and $1200 b、$3200 and $200 c、$3600 and $800 d、$4000 and $600
43、the prohibitive tariff is a tariff that _______. a、is so high that it eliminates imports. b、is so high that it causes undue harm to trade-partner economies. c、is so high that it causes undue harm to import competing sectors. d、is so low that the government prohibits its use since it would lose an important revenue source.
44、the existence of marginal social benefits which are not marginal benefits for the industry producing the import substitutes ___________. a、is an argument supporting free trade and non-governmental involvement. b、is an argument supporting the use of an optimum tariff. c、is an argument supporting the use of market failures as a trade-policy strategy. d、is an argument rejecting free trade and supporting governmental involvement.
45、the domestic market failure argument is a particular case of the theory of _________. a、the optimum, or first-best. b、the second best. c、the third best. d、the sufficing principle.
46、the difficulty of ascertaining the right second-best trade policy to follow ___________. a、reinforces support for the third-best policy approach. b、reinforces support for increasing research capabilities of government agencies. c、reinforces support for abandoning trade policy as an option. d、reinforces support for free-trade options.
47、the reason protectionism remains strong in the united states is that _________. a、economists can produce any result they are hired to produce. b、economists cannot persuade the general public that free trade is beneficial. c、economists do not really understand how the real world works. d、the losses associated with protectionism are diffuse, making lobbying by the public impractical.
48、which one of the following statements does not seem generally valid with respect to the stance of trade policy? a、policy tends toward freer trade in countries whose imports are inputs into important industries. b、policy has tended toward freer trade when export interests are organized. c、since consumers outnumber producing firms, elected officials usually adopt free-trade policies to satisfy the consumer majority. d、recession periods usually lead to greater protectionism.
49、the average tariff rate dutiable imports in the united states after rtaa is approximately _________. a、less than 10 % of the value of imports. b、15% of the value of imports. c、20 % of the value of imports. d、25% of the value of imports.
50、today u.s. protectionism is concentrated in ______________. a、high-tech industries. b、labor-intensive industries. c、industries in which japan has a comparative advantage. d、computer intensive industries.
51、a specific tariff provides home producers more protection when _______________. a、the home market buys cheaper products rather than expensive products. b、it is applied to a commodity with many grade variations. c、the home demand for a good is elastic with respect to price changes. d、it is levied on manufactured goods rather than primary products.
52、which industrialization policy used by developing countries places emphasis on the comparative advantage principle as a guide to resource allocation? a、export promotion b、import substitution c、international commodity agreements d、infant industry promotion
53、key measures of isi policy include: _______________. a、limiting competing imports b、subsidized government loans c、seeking to develop production channels for every stage of a product not just the final products. d、all of the above
54、what does infant industry argue? a、the developing countries may have a potential comparative advantage in some industries, but these industries cannot initially compete with well-established industries in other countries. b、to allow these industries to establish themselves, governments should temporarily support them until they have grown strong enough to compete internationally. c、isi policy is focusing on protection and incubation of domestic industries so they may emerge to compete with imported goods and make local economy more self-sufficient. d、all of the above
55、which of the following is not the correct answer for the failing of isi policy? why isi policy did not help latin america to achieve prosperity? a、this policy depends too much on the domestic market, which is rather small compare with global market. b、it was wasteful to support domestic industries. c、isi policy requires to develop the capital-intensive industries, developing countries lacks of the resources to realize it. d、it is consistent with comparative advantage where countries should specialize in the production of goods in which they have a particular advantage and engage in international trade.
56、which option is not the true incentive for the u.s. to push trade liberalization in 1940s? a、us advocates for trade liberalization because trade liberalization is good for the world economy. b、us export dramatic declined after wwii. c、facing the excessive manufacturing output after the war economic boom, us must find a new market to sell their products so that to main its high growth speed and high employment rate. d、none of the above
57、which of the following choice is/are principles proposed in “washington consensus”? a、to open domestic market b、fully implement market economy by restricting the government’s intervention c、privatizing state-owned enterprises d、all of the above
58、what is the not the consequence of smoot-hawley tariff act? a、it helped the u.s. economy to recover from great depression and accelerates the growth of business in the u.s. b、this act prompted retaliation. other countries implemented similar actions against the u.s. c、trade protection were adopted in many countries to avoid negative impact from abroad, this is so called “beggar-thy-neighbor”. d、international retaliatory moves led to a dramatic decline in the volume of world trade.
59、which is not the functions of u.s. “section 301”? a、initiate investigation against foreign unfair trade practice b、initially aimed at barriers to trade in goods c、provide remedy to us companies d、a multilateral agreement that meant to satisfy the interests of both the u.s. and its partners.
60、what is not the role of the government in export-oriented industrialization policy? a、making strategic exchange rate devaluation policy to provide domestic companies an advantage in comparative price international market. b、to protect and incubate the domestic national industries by providing protection and initial investment to the private and public sector. c、providing fiscal and financial incentives for export promotion. d、liberalize trade, stop the government intervention, sell national companies to foreign companies, open the financial market
61、the heckscher-ohlin, factor-proportions model lends support to the argument that __________. a、trade tends to worsen the conditions of unskilled labor in rich countries. b、trade tends to worsen the conditions of owners of capital in rich countries. c、trade tends to worsen the conditions of workers in poor countries. d、trade tends to worsen the conditions of workers in rich countries.
62、the pauper labor and the exploitation arguments _________. a、are theoretical weaknesses that limit the applicability of the ricardian concept of comparative advantage. b、are theoretically irrelevant to the ricardian model, and do not limit its logical relevance. c、are not relevant because the ricardian model is based on the labor theory of value. d、are not relevant because the ricardian model allows for different technologies in different countries.
63、under what circumstances will wto not allow violation of mfn treatment principle? a、two or more than two countries form one fta. b、developed countries provide preferential treatment towards the products or services that imported from least developed countries. c、countries that enjoy gsp. d、developed countries suppress other country.
64、national treatment principle says imported and locally produced goods should be treated equally _______. a、after the foreign goods have entered the country. b、before the foreign goods have entered the market. c、after the foreign goods have entered the market. d、before the foreign goods have entered the country.
65、sometimes, promising not to raise a trade barrier can be as important as lowering one, ___________. a、because the promise gives businesses a clearer view of their future opportunities. b、because businessman can always keep their words. c、because it is not meaningful to lower trade barrier. d、because people always believe in promises unconditionally
66、with stability and predictability, _____________.which of following is not ture? a、investment is encouraged. b、unemployment is rising. c、jobs are created. d、consumers can fully enjoy the benefits of competition.
67、a country can change its bindings, but only after __________. a、thinking twice. b、admitting his mistakes. c、negotiating with its trading partners. d、economic downturn.
68、how to determine the competition is fair or unfair？ a、calculate import and export quantity. b、compare production to comsumption. c、it depends on the amount of trade. d、it is still hard to determine.
69、why wto should pay more attention to developing countries and development issues? a、it is one of wto’s mission. b、there are a few developing countries. c、developing countries have huge economic size. d、because wto pay attention to developing countries only.
70、rtas are involving from generation 1 to generation 2.which of following dose not bolong to generation 2? a、tpp b、ttip c、ftaap d、nafta
71、what is the most economically integrated organization? a、european union b、cafta c、china-asean d、nafta
72、if the products you import from vietnam enjoy the preferential tariff rates ,according to cafta, you must supply for __________. a、emport license. b、a certificate of origin. c、quality inspection report. d、tax exemption certification.
73、compared with generation 1 rtas, generation 2 is more __________. a、bigger,deeper and political. b、bigger,deeper and freer. c、smaller,deeper and freer. d、smaller,freer and economic.
74、the dynamic effects do not include __________. a、economies of scale effect. b、trade creation effect. c、competition reinforce effect. d、stimulus of investment effect
75、generally speaking，large economies such as the united states or japan have a ______ share of domestic content in their chemicals exports. a、low b、high c、various d、small
76、gravity model as a main tool to explain ______. a、what trade. b、why trade is important. c、how to trade. d、who trades with whom.
77、why canada and mexico trade so much with usa? a、because the usa only wants to trade with mexico and canada. b、because mexico and canada have particularly large economic size. c、because the price of commodities is low in mexico and canada. d、because they are neighbors of usa.
78、the gravity model can explain why ______. a、trade between sweden and germany exceeds that between sweden and spain. b、countries with oil reserves tend to export oil. c、capital rich countries export capital intensive products. d、intra-industry trade is relatively more important than other forms of trade between neighboring countries.
79、in general, which of the following does not tend to increase trade between two countries? a、linguistic or cultural affinity. b、historical ties. c、larger economies. d、the border between countries.
80、which of the following does not explain the extent of trade between ireland and the u.s.? a、historical ties. b、cultural linguistic ties. c、geographical location d、multinational corporations.
81、generally,the bigger the economic size are,or the_____the distance between the two countries is,the _____the value of trade between the two countries will be. a、longer,larger b、shorter,larger c、longer,smaller d、shorter,smaller
82、singapore has close trade ties with lots of other countries, _____________. a、it is because singapore has geographic advantage. b、because of cultural affinity. c、because singapore has more multinational corporations. d、it is because singapore close to many countries.
83、trade agreement between countries are intended to _______, and therefore to increase trade. a、increases tariff. b、lower commodity prices quickly. c、reduce the formalities and tariffs needed to cross borders. d、realize tax exemption.
84、in a two-country, two-product world, the statement "germany enjoys a comparative advantage over france in autos relative to ships" is equivalent to ___________. a、france having a comparative advantage over germany in ships. b、france having a comparative disadvantage compared to germany in autos and ships. c、germany having a comparative advantage over france in autos and ships. d、france having no comparative advantage over germany.
85、given the information in the following table, ___________. a、neither country has a comparative advantage in cloth. b、home has a comparative advantage in cloth. c、foreign has a comparative advantage in cloth. d、home has a comparative advantage in both cloth and widgets.
86、given the information in the following table, if it is ascertained that foreign uses prison-slave labor to produce its exports, then home should __________. a、export cloth. b、export widgets. c、export both and import nothing. d、export and import nothing.
87、given the information in the following table, if the home economy suffered a meltdown, and the unit labor requirements doubled to 20 for cloth and 40 for widgets then home should ________________. a、export cloth. b、export widgets. c、export both and import nothing. d、export and import nothing.
88、given the information in the following table, if wages were to double in home, then home should _________________. a、export cloth. b、export widgets. c、export both and import nothing. d、export and import nothing.
89、given the information in the following table, home's opportunity cost of cloth is _____________. a、0.5. b、2.0. c、6.0. d、1.5.
90、given the information in the following table, home's opportunity cost of widgets is ___________. a、0.5. b、2.0. c、6.0. d、1.5.
91、given the information in the following table, foreign's opportunity cost of cloth is ____________. a、0.5. b、2.0. c、6.0. d、1.5.
92、given the information in the following table, if the world equilibrium price of widgets were 4 cloth, then _____________. a、both countries could benefit from trade with each other. b、neither country could benefit from trade with each other. c、each country will want to export the good in which it enjoys comparative advantage. d、neither country will want to export the good in which it enjoys comparative advantage.
93、a nation engaging in trade according to the ricardian model will find its consumption bundle ___________. a、inside its production possibilities frontier. b、on its production possibilities frontier. c、outside its production possibilities frontier. d、inside its trade-partner's production possibilities frontier.
94、according to ricardo, a country will have a comparative advantage in the product in which its _____________. a、labor productivity is relatively low. b、labor productivity is relatively high. c、labor mobility is relatively low. d、labor mobility is relatively high.
95、assume that labor is the only factor of production and that wages in the united states equal $20 per hour while wages in japan are $10 per hour. production costs would be lower in the united states as compared to japan if ______________. a、u.s. labor productivity equaled 40 units per hour and japan's 15 units per hour. b、u.s. labor productivity equaled 30 units per hour and japan's 20 units per hour. c、u.s. labor productivity equaled 20 units per hour and japan's 30 units per hour. d、u.s. labor productivity equaled 15 units per hour and japan's 25 units per hour.
96、the two-country, multi-product model differs from the two-country, two-product model in that, in the former ________________. a、the relative wage ratio will determine the pattern of trade ( which good is exported by which country). b、which country will export which product is determined entirely by labor productivity data. c、full specialization is likely to hold in equilibrium. d、none of the goods are potentially nontraded.
97、the trading principle formulated by adam smith maintained that: ________________. a、international prices are determined from the demand side of the market b、differences in resource endowments determine comparative advantage c、differences in income levels govern world trade patterns d、absolute cost differences determine the immediate basis for trade
98、if the demand for traded goods is price-inelastic, the price-specie-flow mechanism will result in _____________________. a、gold movements between countries that remove trade deficits and surpluses. b、gold movements between countries that worsen trade deficits and surpluses. c、negligible movements of gold between countries and hence little or no adjustment of trade deficits and surpluses. d、a removal of the basis for trade between countries.
99、a mercantilist policymaker would be in favor of which of the following policies or events pertaining to his/her country? a、a decrease in the size of the population b、a minimum wage bill to protect the standard of living of workers c、a prohibition on the export of manufactured goods d、an increase in the percentage of factors of production devoted to adding value to imported raw materials in order to later export the resulting manufactured goods.
100、the price-specie-flow mechanism suggested that _____________________. a、a country could easily maintain a balance-of-payments surplus for a long period of time. b、a deficit country would experience an increase in its money supply and its price level. c、a surplus country would experience an increase in its money supply and its price level. d、a country’s internal price level has no relation to the country’s foreign trade activities.
101、referring to the following figure, the relative cost aluminum of in terms of steel is: _______________. figure: production possibilities schedule a、4.0 tons b、2.0tons c、0.5tons d、0.25tons
102、in a two-country, two-product world, the statement "japan enjoys a comparative advantage over france in steel relative to bicycles" is equivalent to: _______________. a、france having a comparative advantage over japan in bicycles relative to steel b、france having a comparative disadvantage against japan in bicycles and steel c、japan having a comparative advantage over france in steel and bicycles d、japan having a comparative disadvantage against japan in bicycles and steel
103、the ricardian model of comparative advantage is based on all of the following assumptions except: _____________. a、only two nations and two products b、product quality varies among nations c、labor is the only factor of production d、labor can move freely within a nation
104、refer to the following figure. if the relative cost of aluminum were to rise, then the production possibilities schedule would: figure: production possibilities schedule a、become steeper b、become flatter c、shift inward in a parallel manner d、shift outward in a parallel manner
105、in the specific factors model, labor is defined as a(an) ______________. a、intensive factor. b、mobile factor. c、variable factor. d、fixed factor.
106、in the specific factors model, which of the following is treated as a specific factor? a、food b、land c、labor d、technology
107、a factor of production that can be used in any sector of an economy is a(an) ____________. a、import-competing factor. b、export-competing factor. c、mobile factor. d、variable factor.
108、the specific factors model assumes that there are ________ goods and ________ factor(s) of production. a、two; two b、two; one c、three; two d、two; three
109、the degree of a factor's specificity is directly related to ___________. a、the cost of the factor as a proportion of the long-run total cost of production. b、technology differences between two countries, with a more advanced technology resulting in more factor specificity. c、the amount of time required to redeploy the factor to a different industry. d、factor quality, with higher quality factors having a higher level of specificity.
110、the degree of a factor's specificity is inversely related to ________________. a、the amount of time required to redeploy the factor to a different industry. b、factor quality, with lower quality factors having a lower level of specificity. c、the cost of the factor as a proportion of the long-run total cost of production. d、the mobility of the factor, with more mobile factors having less specificity.
111、in the specific factors model, a country's production possibility frontier is ________ because of ________. a、a straight line; diminishing marginal returns b、a curved line; diminishing marginal returns c、a straight line; constant marginal returns d、a curved line; constant marginal returns
112、when a country's labor market is in equilibrium in the specific factors model, the wage rate _____________. a、will be higher in the sector where product price is lower. b、will be the same in both sectors. c、will be higher in the sector where product price is higher. d、will be higher in the export-competing sector.
113、in the specific factors model, which of the following will increase the quantity of labor used in food production? a、an increase in the price of cloth relative to that of food b、an increase in the price of food relative to that of cloth c、a decrease in the price of labor d、an equal percentage increase in the price of food and cloth
114、in the specific factors model, a 0% increase in the price of food accompanied by a 5% increase in the price of cloth will cause wages to ________, the production of cloth to ________, and the production of food to ________. a、increase by more than 5%; increase; remain unchanged b、increase by less than 5%; increase; decrease c、remain constant; decrease; decrease d、increase by 5%; remain unchanged; remain unchanged
115、in the specific factors model, a 5% increase in the price of food accompanied by a 5% increase in the price of cloth will cause ________ in the welfare of labor, ________ in the welfare of the fixed factor in the production of food, and ________ in the welfare of the fixed factor in the production of cloth. a、a decrease; an increase; an increase b、a decrease; a decrease; a decrease c、no change; no change; no change d、an increase; a decrease; a decrease
116、in the specific factors model, a 5% decrease in the price of food accompanied by a 5% decrease in the price of cloth will cause ________ in the welfare of labor, ________ in the welfare of the fixed factor in the production of food, and ________ in the welfare of the fixed factor in the production of cloth. a、an increase; an increase; an increase b、a decrease; a decrease; a decrease c、no change; no change; no change d、a decrease; an increase; an increase
117、in the specific factors model, a 5% increase in the price of food accompanied by a 10% increase in the price of cloth will cause ________ in the welfare of labor, ________ in the welfare of the fixed factor in the production of food, and ________ in the welfare of the fixed factor in the production of cloth. a、an ambiguous change; an increase; a decrease b、a decrease; an ambiguous change; an ambiguous change c、an ambiguous change; an ambiguous change; an ambiguous change d、an ambiguous change; a decrease; an increase
118、the relative price of a unit of cloth in the small isolated country of moribundia is 5 units of food. when the central city, mudhole, puts in an airstrip, the country is able to engage in trade. if the relative price of cloth in the outside world is 3 units of food, then moribundia will export ________ and ________ factors used in the production of ________ will benefit. a、cloth; mobile; cloth b、food; mobile; food c、food; immobile; cloth d、food; immobile; food
119、in the specific factors model, the effects of trade on welfare overall are ________ and for fixed factors used to produce the imported good they are ________. a、ambiguous; positive b、positive; negative c、positive; positive d、positive; ambiguous
120、if a country produces good y (measured on the vertical axis) and good x (measured on the horizontal axis), then the absolute value of the slope of its production possibility frontier is equal to _____________. a、the opportunity cost of good x. b、the price of good x divided by the price of good y. c、the price of good y divided by the price of good x. d、the opportunity cost of good y.
121、the assumption of diminishing returns in the heckscher-ohlin model means that, unlike in the ricardian model, it is likely that _____________________. a、countries will not be fully specialized in one product. b、countries will benefit from free international trade. c、countries will consume outside their production possibility frontier. d、comparative advantage will not determine the direction of trade.
122、in the 2-factor, 2-good heckscher-ohlin model, trade will ________ the owners of a country's ________ factor and will ________ the good that uses that factor intensively. a、harm; scarce; import b、harm; abundant; import c、benefit; scarce; export d、benefit; scarce; import
123、in the heckscher-ohlin model, when two countries begin to trade with each other ____________. a、the relative prices of traded goods in the two countries converge. b、relative factor prices in the two countries diverge. c、benefits from trade are evenly distributed between the two countries. d、all factors in both countries will gain from trade.
124、if a good is capital intensive it means that the good is produced ___________. a、using capital as the only input. b、using capital such that the cost of capital is more than 50% of total cost. c、using capital such that the total cost of capital is greater than the total cost of labor. d、using relatively more capital than goods that are not labor intensive.
125、if australia has relatively more land per worker, and belgium has relatively more capital per worker, then if trade began between these two countries ___________________. a、the relative price of the capital-intensive product would decrease in belgium. b、relative product prices would diverge between australia and belgium. c、the relative price of the land-intensive product would increase in australia. d、the relative price of the land-intensive product would increase in belgium.
126、if japan is relatively capital rich and the united states is relatively land rich, and if food is relatively land intensive then trade between these two, formerly autarkic countries will result in __________________. a、a global increase in the relative price of food. b、an increase in the relative price of food in the u.s. c、a decrease in the relative price of food in both countries. d、an increase in the relative price of food in japan.
127、trade benefits a country by ______________. a、increasing available consumption choices. b、reducing the relative price of the exported good. c、increasing the wage rate. d、increasing the real income of all resource owners.
128、if gambinia has many workers but very little land and even less productive capital, then, following the heckscher-ohlin model, we predict that gambinia will export ______________. a、capital-intensive goods. b、labor-intensive goods. c、both labor- and land-intensive goods. d、both capital- and land-intensive goods.
129、if gambinia has many workers but very little land and even less productive capital, then, following the heckscher-ohlin model, in order to improve the country's economic welfare, the gambinian government should _______________. a、discontinue all international trade. b、protect the labor-intensive product. c、engage in free trade. d、protect the capital-intensive product.
130、international trade has strong effects on income distributions. therefore, international trade ________. a、will be beneficial to all those engaged in international trade. b、will tend to hurt one trading country. c、will tend to hurt one trading country. d、will tend to hurt some groups in each trading country.
131、if the u.s post-trade consumption point lies along its production possibilities schedule, the united states achieves a higher level of welfare with trade than without trade.
132、if the international terms of trade lies beneath the mexican cost ratio, mexico is worse off with trade than without trade.
133、if a country’s terms of trade improve, it must exchange fewer exports for a given amount of imports.
134、assume 1990 to be the base year. if be the end of 2004 a country ‘s export price index rose from 100 to 130 while its import price index rose from 100 to 115, its terms of trade would equal 113.
135、a nation realizes maximum gains from trade at the point where the international terms of trade line is tangent to its community indifference curve.
136、as a result of trade, the number of firms in a new international industry is predicted to increase relative to each national market. but it is unclear if firms will locate in the domestic country or foreign countries.
137、product differentiation and internal economies of scale cannot lead to trade between similar countries with no comparative advantage differences between them.
138、because trade increases the variety of goods that consumers can buy under monopolistic competition, it increases the welfare of consumers.
139、fdi activity concentrated in sectors with high trade costs. when increasing returns to scale are important and average plant sizes are large, we observe higher export volumes relative to fdi.
140、foreign outsourcing or offshoring occurs when a firm contract with an independent firm to produce in the foreign location.
141、most chinese firms do not report any exporting activity at all — sell only to chinese customers.
142、the trade costs reduce the profitability of exporting for all firms. for some, that reduction in profitability makes exporting unprofitable.
143、an industry where economies of scale are purely external will typically consist of many small firms and be perfectly competitive.
144、modern examples of internal economies: in the united states, the semiconductor industry is concentrated in silicon valley, investment banking in new york, and the entertainment industry in hollywood.
145、a typical firm in a monopolistically competitive industry is expected to sell more as total sales in the industry increase and as prices charged by rivals increase.
146、a larger firm is more efficient because average cost decreases as output increases with internal economies of scale.
147、in monopolistic competition model, we assume the individual firms are symmetric, and the state of the industry can be described without describing the features of individual firms.
148、in monopolistic competition model, at the long run equilibrium number of firms in the industry, firms have no incentive to enter or exit the industry. if the number of firms is greater than or less than equilibrium number, then firms have an incentive to exit or enter the industry.
149、in monopolistic competition model, integrating markets through international trade therefore has the same effects as growth of a market within a single country.
150、most prominent is the trade of agricultural goods among developing nations, which accounts for the majority of world trade.
151、vertical fdi is growing fast and is behind the large increase in fdi inflows to developing countries.
152、multinationals are typically larger and more productive than exporters, which in turn are larger and more efficient than firms that sell only to the domestic market.
153、like mercantilism, the theory of foreign trade multiplier considers it is important to improve the balance of trade.
154、keynesianism considers it is important for the government to intervene the market.
155、according to the strategic-trade-policy hypothesis, governmental subsidies granted to domestic producers can help them in capturing economic profits from foreign competitors.
156、according to the strategic-trade-policy hypothesis, government can alter the terms of competition to favor domestic companies, thus increasing their profits at the expense of their rivals.
157、according to the strategic-trade-policy hypothesis, a subsidy granted to domestic exporters may lead to increased export profits which more than offset the cost of the subsidy to domestic taxpayers.
158、the strategic-trade-policy is not likely to be practical due to insufficient information.
159、list recommended that protection of manufacturing products would be on a universal basis rather than a selective and discriminatory.
160、the infant-industry theory holds that once the emerging industry is stable enough to compete internationally, any protective measures introduced, such as tariffs, are intended to be removed.
161、one of the infant-industry theory limitations is that it is difficult to determine which industries will be capable of realizing comparative-advantage potential.
162、friedrich list considered it should insist on free trade when an economy is at the agricultural stage.
163、according to keynes’s principle of domestic investment multiplier, the magnitude of the multiplier is determined by the marginal propensity to consume.
164、under the open economic system, a country's exports, like domestic investment, belong to "leakage".
165、the gains from free trade are somewhat smaller for poorer developing countries than advanced economies.
166、free trade to some extent can avoid rent-seeking.
167、optimum tariff rate is usually positive and less than prohibitive rate.
168、the reason that a policy like the sugar quota can happen can be explained by median voter theorem.
169、when the group is small and/or well organized, the problem of collective action can best be overcome.
170、the median voter model seems to work very well in the area of trade policy.
171、it is difficult to know what the appropriate policy measures should be taken because market failures are hard to identify.
172、free trade can bring about more competition so that it can make the economy as a whole more efficient.
173、trade polices justified by domestic market failure are always first-best rather than second-best policies.
174、isi based is on the premise that a country should attempted to reduce its foreign dependency and achieve to achieve self-sufficiency.
175、the strategy of south korea’s trade policy is apparently not fully trade liberalization nor fully trade protection. it is a combination of protectionism and neomercantilism.
176、government initiative is import in capital intensive sectors particularly when private sectors are weak because the developments of these industries are highly dependence on imported capital goods.
177、due to international trade, an economic activity that is subject to strong environmental controls in some counties can take place in other countries can take place in other countries with less strict regulation, which is called pollution haven.
178、most empirical research that the pollution haven effect on international trade is relatively small at least so far.
179、the ricardian model helps the claim that trade hurts workers in developing countries.
180、the idea behind carbon tariffs is to charge importers of goods from countries without climate-change an amount proportional to the carbon dioxide emitted in the production of those goods.
181、most economists consider that developing-country workers may earn low wages by western standards, but trade allows them to earn more than they otherwise would.
182、if canada has a higher wage level and higher labor productivity than mexico, canada will necessarily produce a good at a higher labor cost than mexico.
183、the environmental kuznets curve say that economic growth initially tends to increase environmental damage as a country grows richer but that beyond that a certain point, growth is actually god for the environment.
184、to the extent that globalization promotes economic growth, it has ambiguous effects on the environment.
185、there is growing concern that globalization may allow highly polluting industries to move to the pollution havens, where regulation is looser, since 1990s.
186、the enforcement of labor standards is sometimes included within trade agreements and is an issue on which consumer groups and unions often demand action.
187、the world trade organization—wto,is the only international organization dealing with the rules of trade between nations.
188、china supports wto to continue to provide preferential treatments to developing countries, and view this as a key point of the multilateral trade system.
189、in today’s world,there are two parallel trends, one is globalization, the other is regional economic integration,the former facing lots of challenges, while the latter developed fast.
190、without a review or scrutinizing mechanism, it is difficult for the wto to make sure every member abide by the agreements and their own commitments.
191、organize negotiation is the only function of wto.
192、charging customs duty on an import is a violation of national treatment principle.
193、in tariff reduction, developing countries can have less cut and longer time to fulfill their commitment.
194、if developing countries cannot be treated more favorably, it will be difficult for wto to achieve more and go ahead.
195、from time to time，red tape and exchange rate policies will discourage freer trade.
196、viner’s analysis about trade creation and trade diversion is only a static analysis, even it is classic, but not meaningful.
197、compared with static analysis, dynamic effect of rta is more meaningful.
198、the trade conflict between usa and china which originated in 2017, to some degree it can be viewed as a trade war that triggered by usa against china, the aim is to suppress china’s development.
199、when world economy is cold, world trade volume will shrink, at the same time the commodity price fells down, so the value of world trade shrinks more.
200、the more country a and country b invest on each other’s markets, maybe the stronger the trade relationship between them will be.
201、trade can be used as a strategic weapon against other countries.
202、usa is the biggest exporter of food and china is the biggest importer of food,so china must pay more attention on this, and prepare for the possible food crisis.
203、because of china’s accession to the wto,china’s economy was destroyed easily by powerful foreign companies.
204、canada’s economy is roughly the same size as spain’s, but canada trades as much with the united states as does all of europe.it is because of nafta and because canada are close to the u.s.
205、there is much more trade between pairs of canadian provinces than between canadian provinces and u.s. states.