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.Management Sciences
Category: The International Economy And Globalization
International trade is based on the idea that ?
A. Exports should exceed imports
B. imports should exceed exports
C. Resources are more mobile internationally than are goods
D. Resources are less mobile internationally than are goods
Which of the following is not an argument for protectionism ?
A. To protect infant industries
B. To increase the level of imports
C. To Protect strategic industries
D. To improve the balance of payments
David Ricardo’s theory in favor of free trade uses the ideal of ?
A. absolute advantage
B. mutual advantage
C. multilateral advantage
D. comparative advantage
Technological improvements are similar to international trade since they both ?
A. Provide benefits for all producers and consumers
B. Increase the nation’s aggregate income
C. Reduce unemployment for all domestic workers
D. Ensure that industries can operate at less than full capacity
Arguments for free trade are sometimes disregarded by politicians because ?
A. Maximizing domestic efficiency is not considered imports
B. Maximizing consumer welfare may not be a chief priority
C. There exist sound economic reasons for keeping one’s economy isolated from other economies
D. Economists tend to favor high protected domestic markets
LDCs often have a comparative advantage in the production of ?
A. primary products
B. intermediate products
C. manufactured products
D. financial services
If a group of countries abolish trade barriers between them and set same tariffs on goods coming in from other countries they are a ?
A. common market
B. free trade area
C. customs union
D. federation
If a nation has an open economy it means that the nation ?
A. Allows private ownership of capital
B. Has flexible exchange rates
C. Has fixed exchange rates
D. conducts trade with other countries
LDCs are reluctant to pursue development through the export of primary products because of ____ and _____ ?
A. The upward trend in commodity prices the stability of primary products real prices
B. The upward trend in commodity prices, the volatility of primary products real prices
C. The downward trend in commodity prices the stability of primary products real prices
D. The downward trend in commodity prices the volatility of primary products real prices
All of the following represent obstacles to LDC development except ?
A. resource scarcity
B. low levels of investment
C. low population
D. poor infrastructure
E. poor human capital
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