Exam 7: Global Markets in Action

"When countries specialize in producing the good in which they have a comparative advantage and then trade with each other, only the country with the absolute advantage gains." Is the previous statement correct or incorrect? Briefly explain your answer.

In 2016, the world's largest international traders were

Some people assert that protection from foreign competition prevents rich countries from exploiting developing countries. What is this argument in more detail and what is its flaw?

Who benefits from an import quota on a good?

Economics demonstrates that opening up unrestricted free international trade is beneficial to all nations. However, are there any losers from such a policy change?

Trade war occurs when, after a tariff is imposed, other countries retaliate with their own tariff.

When a foreign firm sells its exports at a lower price than its cost of production, the firm is

Tariffs

A tariff is a tax that is imposed by the ________ country when an ________ good crosses its international boundary.

The activities in which U.S. workers are relatively more productive

Dumping occurs when a foreign firm

Which of the following reasons explains why rich countries persistently restrict textile imports from poor countries?

The figure shows the market for shirts in the United States, where D is the U.S demand curve and S is the U.S. supply curve. The world price is $20 per shirt. The United States imposes a tariff on imported shirts, $4 per shirt. -In the figure above, the tariff ________ the domestic production of shirts in the United States by ________ per year.

During the first 6 months of 2008, the United States imported from Africa, Asia, and Latin America more than 1.6 billion pounds of coffee and did not export any coffee. Based on this, we know definitively that

A tariff is imposed on a good. This will ________ the domestic producer surplus, ________ the domestic consumer surplus, and ________ total surplus in the home country.

A country opens up to trade and becomes an importer of a sugar. In the sugar market, consumer surplus will ________, producer surplus will ________, and total surplus will ________.

A country opens up to trade and exports computer chips. In the computer chip market, surplus has been redistributed from

Usually the imposition of trade barriers affecting a particular good benefits ________ people domestically, each of whom gains a ________.

The figure shows the market for shirts in the United States, where D is the domestic demand curve and S is the domestic supply curve. The world price is $20 per shirt. -In the figure above, international trade ________ total surplus in the United States by ________.

When the United States imposes a tariff on a good, the amount of the ________ in U.S. consumer surplus is ________ the amount of the ________ in U.S. producer surplus.