Macroeconomics
13th Edition
ISBN: 9781337617390
Author: Roger A. Arnold
Publisher: Cengage Learning
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Question
Chapter 21.2, Problem 4ST
To determine
The infant industry argument.
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Give an outline of the following trade restrictions: Tariffs, Quotas, Export Subsidies and VERs.
When one country joins a free trade area with a common external tariff, it causes:
a.
Trade diversion
b.
Trade union
c.
Trade creation
d.
Trade agreement
examine different trade policy instruments and critically assess their impacts on national and firm level economic performance.
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- what is the 'Infant Industry' economic argument that supports the need for government intervention in trade?arrow_forwardis a policy that involves extensive use of trade barriers to protect domestic industries from import competition. A. Export quotas B. Export tariffs C. Import substitution D. Import quotasarrow_forwardComplete the following sentence. Quotas, as they relate to global trade, are:Choose one answer.a. limits on exports. b. a complete ban of imports. c. taxes on imports. d. political weapons.arrow_forward
- Trade Protectionist tools include all of the following except: Select one: a. Open Borders for Goods, Capital and labor b. non-tariff barriers c. trade quotas d. tariffs e. capital controlsarrow_forwardWhich of the following is an argument for restricting trade? Question 30 options: Trade restrictions are necessary to protect infant industries. Trade restrictions are necessary for economic growth. Trade restrictions increase economic efficiency. Trade restrictions make all Canadians better off.arrow_forwardWhich of the following is NOT one of three major principles of the World Trade Organization: A. Liberalization of trade B. Nondiscrimination–the most-favored-nation principle C. No unfair encouragement of exports D. Common currencyarrow_forward
- Describe the trade barriers of the Philippinesarrow_forwardWhich of the following trade policies limits specific quantity of goods to be imported at one tariff rate? a. Specific tariff b. Import tariff c. Quota d. All of the abovearrow_forwardExplain how lifting an import quota on other countries will affect an exporting country that had beenexempted from the quota restriction.arrow_forward
- Export subsidy can be welfare improving trade policy for a domestic country if a) it cannot be welfare improving b) the country that implements it is large c) the country that implements it is small d) it is used for agricultural productsarrow_forwardWhen a trade restriction is imposed on an imported good: a. the nation imposing the trade restriction suffers a net economic loss b. a loss is imposed on foreign producers c. Both of the above d. Neither of the abovearrow_forwardWhy did the U.S. government in 1982 provide import quotas as an aid to domestic sugar producers?arrow_forward
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