Question 7According to the liberal perspective, interdependence through free tradeO decreases the likelihood of peace because it perpetuates economic inequalities.O increases regional stability because it leads to the promotion of norms around conduct of economic interaction.O increases the likelihood of peace by making war costly.O decreases the chances for peace by increasing competition.

Free trade is an economic strategy that makes it easier for countries to trade goods and services…

Answered: According to the liberal perspective,…

Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781305971509

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter9: Application: International Trade

Section: Chapter Questions

Problem 1CQQ

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Similar questions

A large share of intrafirm trade suggests O There are increasing returns to trade in the industry. O The industry produces a highly differentiated, knowledge-intensive product. O Offshoring is important in the industry. O Strong comparative advantages.
Trade between individuals and between nations leads to: O Increased specialization O Lower living standards Higher product prices Greater self-sufficiency
All but one of the following statements is used to justify protectionism. Which statement is not used to justify protectionism? O Free trade leads to higher prices for imported goods. O Free trade reduces employment by driving domestic firms out of business. O A country should not rely on other countries for goods that are critical to its national defense. O Trade restrictions are necessary to protect new firms until they can gain experience and become more productive.
According to the Infant Industry Argument Poor countries can foster economic development by using tariffs to protect new firms while they learn to become more productive. O Countries that allow children to work have an unfair advantage in international trade. O Costs of young firms are low because their workers lack seniority, and this contributes to comparative advantage. O When technological change creates a new product, it is the innovating country that is likely to be able to export it.
2. Critically discuss the economic rationales forGovernments to intervene in international tradewhich would affect their country.You must provide examples to justify your pointsfor each question.
When a nation has a comparative advantage in producing a product, then in comparison with any other nation it can produce that product: O With less capital O With less labor At a lower domestic opportunity cost
2. Critically discuss the economic rationales forGovernments to intervene in international tradewhich would affect their country.0You must provide examples to justify your pointsfor each question.
Suppose that the world economy consists of Country A and Country B, both of which are of similar size. Both countries produce Good 1 and Good 2. Suppose Country A and Country B open for trade and this results in Country A importing Good 1 from Country B. Which of the following must be true? O Country A has an absolute advantage in Good 1 O Country B has comparative advantage in Good 1 O Country A has comparative advantage in Good 1 O Country B has comparative advantage in Good 2
6 Consider two countries Home and Partner trading industry goods. Partner’s supply curve can be represented as follows: XSP=P-1 Home’s import demand for industry goods is given by: MD=10-P The rest of the world is represented by the following supply of industry goods. XSRoW=P-1 a) Derive and graph Home’s import supply curve and find the equilibrium price under free trade. Quantify the amount of goods exported and imported. b) Assume that Home imposes a MFN-tariff of 1 on all industry imports. Find the new equilibrium and quantify the domestic price, border prices and quantities exported and imported. c) What happens if Home removes the tariff for imports from Partner but not from the rest of the world. Find the new equilibrium and quantify domestic price, border prices and quantities exported and imported.
↳ A Click Submit to complete this assessment. Question 33 What insights do welfare analysis (consumer surplus/producer surplus) offer into international trade? O a. That trade increases the welfare of producers, so trade may make total surplus fall. O b. That tariffs make a country better off and trade wars can definitely be won! Oc. That nations are better off NOT trading with each other, because lower world prices harm most nations' producers and consumers. Od. That while trade increases total surplus, consumers or producers in a country may gain or lose, depending on world price. A Click Submit to complete this assessment. tab caps lock shift fn 1 Q 2 A W Z I 3 S E X S D R C F T V G H B J N K
NAFTA is a trade agreement between North American countries. O True O False
Assume, for Vietnam, that the domestic price of textiles without international trade is lower than the world price of textiles. This suggests that, in the production of textiles, O Vietnam has a comparative advantage over other countries and Vietnam will export textiles. O other countries have a comparative advantage over Vietnam and Vietnam will export textiles. O other countries have a comparative advantage over Vietnam and Vietnam will import textiles. O Vietnam has a comparative advantage over other countries and Vietnam will import textiles. MacBook A esc D00 FA F1 F2 F3 FS % 4 Q W E R T tab I A S D F G s lock

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