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.Management Sciences
Category: Trade Policies For the Developing Nations
Import substitution is an example of ?
A. the principle of comparative advantage
B. the principle of absolute advantage
C. an outward-looking growth strategy
D. an inward-looking growth strategy
Export-led growth strategies tend to emphasize ?
A. resource allocation based on the principle of absolute advantage
B. resource allocation based on the principle of comparative advantage
C. trade protection for import-competing firms
D. trade protection for exporting-competing firms
The ability of the Organization of Petroleum Exporting Countries (OPEC) to maximize profits is hampered by ?
A. a lack of substitutes for oil
B. similar cost schedules for member countries
C. highly inelastic world demand curve for oil
D. economic recession for oil importing nations
Suppose that the world price of tin is above the target (ceiling) price that is defined by an international commodity agreement. To move the world price toward the target price, a buffer stock agreement would require its buffer stock manager to ____ tin and an export quota agreement would require that member countries _________ their export of tin?
A. purchase; decrease
B. purchase; increase
C. sell; increase
D. sell; decrease
Instead, assume that global economic expansion causes the quantity of tin demanded to increase by 4 million pounds at each price To maintain price of tin at the target price you would ?
A. sell 4 million pounds of tin
B. sell 8 million pounds of tin
C. buy 4 million pounds of tin
D. buy 8 million pounds of tin
Developing countries that emphasize the production of raw materials or agricultural goods may realize a long-run deterioration in the international terms of trade because of ?
A. relatively low import tariffs maintained by advanced countries
B. highly elastic demand for these products in advanced countries
C. declines in the supplies of these products on world markets
D. sluggish demand for these products in advanced countries
Which industrialization policy have developing countries used which places emphasis on the comparative advantage principle as a guide to resource allocation ?
A. export promotion
B. import promotion
C. international commodity agreements
D. multilateral contracts
To help developing nations strengthen their international competitiveness many industrial nations have granted non-reciprocal tariff reductions to developing nations under the ?
A. international commodity agreements program
B. multilateral contract program
C. generalized system of preferences program
D. export-led growth program
In the Px = export price index, Pm = import price index, Qx = export quantity index,and Qm = import quantity index. Developing countries tend to maintain that their commodity term of trade have declined over the long run suggesting that _________ has declined?
A. Px/Pm
B. Pm/Px
C. (Pm/Px)Qm
D. (Px/Pm)Qx
The OPEC oil cartel ?
A. has shown that is easy to achieve cooperation among cartel members
B. was successful in raising oil prices in the 1970s but was disbanded in the 1980s
C. has shown greater success in realizing profits during periods of global recession
D. has had a level of success in raising oil prices that other developing countries are unlikely to achieve with other primary commodities
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