Exam 12: Controversies in Trade Policy

When Japan's MITI (Ministry of International Trade and Industry) focused resources on the semiconductor industry, and in particular on Random Access Memory (RAM), it was viewed as a typically successful Japanese foray into a new dynamic strategic sector. The results, as viewed by the late 1990s

-Refer to the above table. Suppose both governments offer their respective company a $10 million subsidy.

If firms in an industry are generating knowledge that other firms can use without paying for it, this industry is characterized by

It is still the conventional wisdom in the U.S. that compliance with NAFTA requirements is having a deleterious effect on U.S. highway safety standards, on U.S. pollution and other environmental standards, and on U.S. jobs. What facts would proponents of an expansion of NAFTA (e.g., to include all of Central and South American countries) need to marshall in order to convince you?

The reason Airbus succeeded in the Brander Spencer example is that

The Heckscher-Ohlin, factor-proportions model lends support to the argument that

Labor standards in trade are typically opposed by most developing countries who believe that they will be used

In the second half of the 1990s a rapidly growing movement focused on the harm caused by international trade to

Faced with the evidence of poor working conditions and low wages in the border maquiladoras, economists

The invocation of beggar-thy-neighbor arguments with respect to industrial policies

Criticisms of the Brander-Spencer model include all EXCEPT which of the following?

Free trade and globalization is generally believed

The argument that strategic planning is NOT likely to be practical due to insufficient information means that

Most developing countries oppose including labor standards in trade agreements because

-Refer to the above table. Suppose Airbus is set to produce the aircraft before Boeing. Which company will enter the market?

-Refer to the above table. Suppose both governments offer their respective company a subsidy of $4 (million).

What is a pollution haven?

The existence of positive externalities due to the impossibility of full appropriability

The Shipbreakers of Alang arouse the ire of Greenpeace because of

The Brander-Spencer model identified market failure in certain industries due to