Question 1

Briefly,what are the major causes of export earnings instability for developing countries?

Accepted Answer

Low price and income...

Question 2

Which of the following is not an argument in favor of export promotion over import substitution?

Accepted Answer

A)  international competition compels domestic producers to become more efficient.
B)  exposure to world markets provides greater opportunities to learn new technologies.
C)  producing for export permits greater specialization and economies of scale.
D)  outward-looking development promotes larger firms.E) A) and B)
F) A) and C)

Question 3

After a policy of import substitution has begun,a developing country finds that employment has not risen significantly and that urban unemployment seems to be rising.Explain how these developments might be connected.

Accepted Answer

Modern sector enrich...

Question 4

The long-run social benefits of infant industry protection are more likely to be realized if

Accepted Answer

A)  investors believe that tariff barriers are permanent.
B)  investors believe that tariff barriers are transitory.
C)  tariff barriers increase over time.
D)  tariff barriers are replaced with quotas over time.E) C) and D)
F) None of the above

Question 5

The most important role of the World Trade Organization is

Accepted Answer

A)  to promote market oriented economic policies.
B)  to settle trade disputes.
C)  to provide development assistance.
D)  to help countries choose the appropriate level of a tariff or quota.E) None of the above
F) B) and C)

Question 6

If the equilibrium exchange rate is 15 pesos per dollar and the central bank fixes the exchange rateat 17 pesos per dollar then we can conclude that the peso is

Accepted Answer

A)  appreciated.
B)  depreciated.
C)  overvalued.
D)  undervalued.E) A) and C)
F) A) and B)

Question 7

The dependence on the export of one or two primary products for a majority of the revenue from exports is most severe in countries in

Accepted Answer

A)  South Asia.
B)  East Asia.
C)  Sub Saharan Africa.
D)  Latin America.E) All of the above
F) A) and B)

Question 8

Which of the following factors makes the success of economic integration more likely?

Accepted Answer

A)  Nationalism.
B)  Desire for prestige projects.
C)  Diverse economic systems.
D)  All of the above.
E)  None of the above.F) B) and D)
G) B) and E)

Question 9

The nominal rate of protection shows the extent to which the domestic price of imported goods exceeds

Accepted Answer

A)  what the price would be without tariffs.
B)  the cost of intermediate inputs.
C)  the social opportunity costs of the good.
D)  the no-trade equilibrium price.E) A) and B)
F) All of the above

Question 10

The purpose of commodity buffer stocks is

Accepted Answer

A)  to moderate price fluctuations.
B)  to raise commodity prices.
C)  to encourage commodity substitution.
D)  to guarantee national security.E) A) and C)
F) A) and B)

Question 11

Explain briefly the vent-for-surplus theory of international trade.What is the relevance of this theory to the current development experience of low-income economies?

Accepted Answer

Discussed ...

Question 12

An economic community

Accepted Answer

A)  attempts to raise prices by restricting quantity.
B)  seeks to stabilize commodity prices.
C)  seeks concessional loans.
D)  imposes a common external tariff.
E)  none of the above.F) A) and D)
G) B) and E)

Question 13

The effective rate of protection is

Accepted Answer

A)  value added with protection divided by value added without protection.
B)  value added with protection.
C)  value added without protection.
D)  (value added with protection minus value added without protection) divided by value added without protection.E) C) and D)
F) B) and D)

Question 14

Taiwan and Jamaica are both islands that have pursued export-oriented development strategies,but Jamaica has experienced increases in unemployment and poverty,while Taiwan has experienced decreases.How might you explain this?

Accepted Answer

The type of exports,commodity ...

Exam 12: International Trade Theory and Development Strategy

Explain briefly the vent-for-surplus theory of international trade.What is the relevance of this theory to the current development experience of low-income economies?

Correct Answer
Answered by ExamLex AI
Discussed ...
View Answer

Briefly,what are the major causes of export earnings instability for developing countries?

Correct Answer
verified
Low price and income...
View Answer

If the equilibrium exchange rate is 15 pesos per dollar and the central bank fixes the exchange rateat 17 pesos per dollar then we can conclude that the peso is

Correct Answer
verified

The purpose of commodity buffer stocks is

Correct Answer
verified

Taiwan and Jamaica are both islands that have pursued export-oriented development strategies,but Jamaica has experienced increases in unemployment and poverty,while Taiwan has experienced decreases.How might you explain this?

Correct Answer
verified
The type of exports,commodity ...
View Answer

The long-run social benefits of infant industry protection are more likely to be realized if

Correct Answer
verified

Which of the following is not an argument in favor of export promotion over import substitution?

Correct Answer
verified

The nominal rate of protection shows the extent to which the domestic price of imported goods exceeds

Correct Answer
verified

An economic community

Correct Answer
verified

The most important role of the World Trade Organization is

Correct Answer
verified

The effective rate of protection is

Correct Answer
verified

The dependence on the export of one or two primary products for a majority of the revenue from exports is most severe in countries in

Correct Answer
verified

After a policy of import substitution has begun,a developing country finds that employment has not risen significantly and that urban unemployment seems to be rising.Explain how these developments might be connected.

Correct Answer
verified
Modern sector enrich...
View Answer

Which of the following factors makes the success of economic integration more likely?

Correct Answer
verified

Exam 12: International Trade Theory and Development Strategy

Explain briefly the vent-for-surplus theory of international trade.What is the relevance of this theory to the current development experience of low-income economies?

Correct AnswerAnswered by ExamLex AIDiscussed ...View AnswerShow Answer

Briefly,what are the major causes of export earnings instability for developing countries?

Correct AnswerverifiedLow price and income...View AnswerShow Answer

If the equilibrium exchange rate is 15 pesos per dollar and the central bank fixes the exchange rateat 17 pesos per dollar then we can conclude that the peso is

Correct AnswerverifiedShow Answer

The purpose of commodity buffer stocks is

Correct AnswerverifiedShow Answer

Taiwan and Jamaica are both islands that have pursued export-oriented development strategies,but Jamaica has experienced increases in unemployment and poverty,while Taiwan has experienced decreases.How might you explain this?

Correct AnswerverifiedThe type of exports,commodity ...View AnswerShow Answer

The long-run social benefits of infant industry protection are more likely to be realized if

Correct AnswerverifiedShow Answer

Which of the following is not an argument in favor of export promotion over import substitution?

Correct AnswerverifiedShow Answer

The nominal rate of protection shows the extent to which the domestic price of imported goods exceeds

Correct AnswerverifiedShow Answer

An economic community

Correct AnswerverifiedShow Answer

The most important role of the World Trade Organization is

Correct AnswerverifiedShow Answer

The effective rate of protection is

Correct AnswerverifiedShow Answer

The dependence on the export of one or two primary products for a majority of the revenue from exports is most severe in countries in

Correct AnswerverifiedShow Answer

After a policy of import substitution has begun,a developing country finds that employment has not risen significantly and that urban unemployment seems to be rising.Explain how these developments might be connected.

Correct AnswerverifiedModern sector enrich...View AnswerShow Answer

Which of the following factors makes the success of economic integration more likely?

Correct AnswerverifiedShow Answer

Correct Answer
Answered by ExamLex AI
Discussed ...
View Answer

Correct Answer
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Low price and income...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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The type of exports,commodity ...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
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Modern sector enrich...
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Correct Answer
verified