The opening statement on the website of the Organization of Petroleum Exporting Countries (OPEC) says its members seek ... to secure an efficient, economic and regular supply of petroleum to consumers, a steady income to producers and a fair return on capital for those investing in the petroleum industry. To achieve this goal, OPEC attempts to coordinate and unify petroleum policies by raising or lowering its members’ collective oil production. However, increased production by the United States. Russia, Oman, Mexico, Norway, and other non-OPEC countries has placed downward pressure on the
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Managerial Economics & Business Strategy (Mcgraw-hill Series Economics)
- Q65 If Canada can produce both cannabis and soybeans more efficiently, that is, with smaller absolute amounts of resources, than Brazil, then: Multiple Choice Brazil should impose tariffs. then there is no possible basis for mutually advantageous specialization and trade between Canada and Brazil. we can conclude that Canada is an industrially advanced economy and Brazil is a developing economy. it will necessarily be advantageous for Brazil to import both cannabis and soybeans from Canada. mutually advantageous specialization and trade between Canada and Brazil may still be possible.arrow_forwardQ47 "Canadians, on average, are worse off when some manufacturing jobs migrate from Canada to low-wage countries in Central America." This statement is _____ because... a. Incorrect; the permanent gains to consumers from lower prices outweigh the temporary losses to the displaced manufacturing workers. b. Correct; the loss of manufacturing jobs leads to permanent income losses in Canada. c. Correct; Canadian firms cannot compete with production in low-wage countries. d. Incorrect; low-wage countries do not produce manufactured goods. e. Incorrect; there are no Canadians made worse off by such an event.arrow_forwardDomestic producers of microprocessors send a lobbyist to the U.S. government to request that the government impose trade restrictions on imports of microprocessors. The lobbyist claims that the U.S. microprocessor industry is new and cannot currently compete with foreign firms. However, if trade restrictions were temporarily imposed on microprocessors, the domestic microprocessor industry could mature and adjust and would eventually be able to compete in the world market. Which of the following justifications is the lobbyist using to support their argument in favor of the trade restriction on microprocessors? National-security argument Infant-industry argument Unfair-competition argument Jobs argument Using-protection-as-a-bargaining-chip argumentarrow_forward
- Brazil is one of the world’s largest exporters of beef and China is a major purchaser of that beef (an estimated 30% of China’s beef imports in 2016 came from Brazil). However, in March 2017, China, South Korea, the European Union, and Chile suspended imports of meat products from Brazil as a precautionary measure in response toallegations that meat inspectors and politicians had received bribes to overlook improper meat packing practices and allow sales of tainted food. How would the closing of export markets for a country’s beef products together with a fall in domestic sales of beef products and an increase in the domestic equilibrium quantity be reflected in supply-anddemand diagrams of that country’s foreign and domestic markets for beef in the short run?arrow_forwardWhich of the following policies would lead to increased productivity in the fishing industry? Check all that apply. Imposing a tax on fishing poles Subsidizing research and development into new fishing technologies Imposing restrictions on foreign ownership of domestic capital Sharply increasing the interest rate on student loans to people pursuing advanced degrees in fishingarrow_forward7 Q. China is known to price its exports differently in international markets compared to price in its domestic market. What would be the economic rational for segmenting markets? What can the importing country do to prevent or retaliate against such pricing?arrow_forward
- China and South Korea are two of the leading manufacturers of smartphones and laptops. While the market for laptops in both countries is competitive, the smartphone market is dominated by two firms namely Samsung (South Korea) and Huawei (China). Assuming the two countries establish a free trade agreement. Using a diagram, explain what will happen to production and consumption in either China or South Korea as a result of an increase in market competition.arrow_forwardSuppose firms incur transportation costs to sell their product abroad. How do transportation costs affect the prices that firms charge abroad? Suppose the price offered at home and in the export market is identical, but there are transport costs to ship the good abroad. Does dumping occur? How does an increase in the number of product varieties benefit an importing country? Explain how increasing returns to scale in production can be a basis for trade. Why is trade within a country greater than trade between countries? Why would you expect sellers of branded goods with high upfront research and development costs to be more interested in free trade than producers who do not incur any fixed costs? Focus attention on the Ricardian model, the Heckscher-Ohlin model, and the monopolistic competition model if trade. Consider the intra-industry trade index for each model. What value for the index does each models predict? Explain your answer.arrow_forwardDuring 2007, as oil and gas prices continued to increase, a growing number of Americans called for the United States to become less reliant on Middle-Eastern oil. Would it make sense for the United States to try to become totally self-reliant in the production of oil? Why or why not? Please explainarrow_forward
- Consider two countries, China and South Africa, both producing textiles and beer. The table below shows output rates per day in the two (2) countries, if all resources are fully and efficiently employed. Textiles Beer China 5 10 South Africa 1 6 Q1 Which of the following statements are correct There is no opportunity for mutually beneficial trade between the two (2) countries. China has a comparative advantage in the production of textiles and beer. South Africa has a comparative advantage in the production of beer. The countries will not trade with each other as China can produce more of both goods without trading with South Africaarrow_forwardI made a mistake when submitting, the answer options are this instead: - Denmark has a slight comparative advantage in television production because that activity is skill and capital intensive. - Denmark has a strong absolute advantage in TV production thanks to its skilled workers. -Televisions are highly differentiated and knowledge intensive products, where mainly increasing returns drives trade. - Denmark outsources important parts of its TV value chain. Firms move down their learning curves. Does the original answer still stand? Thank youarrow_forwardSuppose a Japanese manufacturer wants to take advantage of the cheaper labor available in China. Which of the following is not foreign direct investment? Group of answer choices License a Chinese firm to produce its products under its own label. Build a plant in China and send all Japanese workers to operate it. Build a manufacturing subsidiary in China and employ Chinese workers. Buy a Chinese firm that produces similar products, and adapt it to produce its own products.arrow_forward
- Principles of MicroeconomicsEconomicsISBN:9781305156050Author:N. Gregory MankiwPublisher:Cengage Learning