Question 1

According to Nurkse,international trade was an engine of growth for:

Accepted Answer

A) the regions of recent settlements during the 19th century 
B) regions of recent settlements during the 20th century 
C) developed nations during the 19th century 
D) developed nations during the 20th century 
A) the regions of recent settlements during the 19th century 
B) regions of recent settlements during the 20th century 
C) developed nations during the 19th century 
D) developed nations during the 20th century A

Question 2

Which are is not an advantage of export-oriented industrialization?

Accepted Answer

A) It overcomes the smallness of the domestic market and allows developing nations to take advantage of economies of scale 
B) domestic industries grow accustomed to protection and have an incentive to become more efficient 
C) production of manufactured goods for export requires and stimulates efficiency throughout the economy 
D) the expansion of manufactured exports is not limited by the size of the domestic market 
A) It overcomes the smallness of the domestic market and allows developing nations to take advantage of economies of scale 
B) domestic industries grow accustomed to protection and have an incentive to become more efficient 
C) production of manufactured goods for export requires and stimulates efficiency throughout the economy 
D) the expansion of manufactured exports is not limited by the size of the domestic market B

Question 3

When a nation's commodity terms of trade deteriorate and its single factor terms of trade improve,the nation's welfare:

Accepted Answer

A) falls 
B) rises 
C) remains unchanged 
D) any of the above 
A) falls 
B) rises 
C) remains unchanged 
D) any of the above B

Question 4

The following is not an example of an international commodity agreement.

Accepted Answer

A) marketing boards 
B) buffer stocks 
C) export controls 
D) purchase contracts 
A) marketing boards 
B) buffer stocks 
C) export controls 
D) purchase contracts

Question 5

(a)Why did large developing nations generally follow a policy of import substitution as a strategy for growth during the 1950s,1960s,and 1970s?Why was this not generally possible for small developing nations?
(b)Why was the policy of import substitution generally a failure?

Accepted Answer

(a)Large developing nations generally fo

Question 6

Which of the following is not part of the demand for a NIEO?

Accepted Answer

A) the establishment of international commodity agreements 
B) preferential access for the manufactured exports of developed nations 
C) removal of the agricultural trade barriers in developed nations 
D) increasing the yearly flow of foreign aid to developing nations 
A) the establishment of international commodity agreements 
B) preferential access for the manufactured exports of developed nations 
C) removal of the agricultural trade barriers in developed nations 
D) increasing the yearly flow of foreign aid to developing nations

Question 7

The policy of import substitution was most vigorously followed by:

Accepted Answer

A) large developing nations during the 1970's 
B) large developing nations during the 1960's 
C) small developing nations during the 1970's 
D) small developing nations during the 1960's 
A) large developing nations during the 1970's 
B) large developing nations during the 1960's 
C) small developing nations during the 1970's 
D) small developing nations during the 1960's

Question 8

The primary exports of developing nations tend to face demand that is _______ and supply that is _______.

Accepted Answer

A) elastic;elastic 
B) inelastic;inelastic 
C) elastic;inelastic 
D) inelastic;elastic 
A) elastic;elastic 
B) inelastic;inelastic 
C) elastic;inelastic 
D) inelastic;elastic

Question 9

MacBean found that the export instability faced by developing nations was:

Accepted Answer

A) not very large and did not seriously interfere with development 
B) very large and seriously interfered with development 
C) very large but did not seriously interfere with development 
D) not very large but seriously interfered with development 
A) not very large and did not seriously interfere with development 
B) very large and seriously interfered with development 
C) very large but did not seriously interfere with development 
D) not very large but seriously interfered with development

Question 10

In most developing countries,import substitution policies have resulted in

Accepted Answer

A) optimal use of excess supplies of labor. 
B) industries that are over-capitalized. 
C) rapid economic growth. 
D) more rapid growth than export-oriented policies. 
A) optimal use of excess supplies of labor. 
B) industries that are over-capitalized. 
C) rapid economic growth. 
D) more rapid growth than export-oriented policies.

Question 11

If the income elasticity of a good is positive but less than 1,as income increases

Accepted Answer

A) demand for the good will decrease. 
B) demand for the good will increase,but less than proportionately to the income increase. 
C) demand for the good will increase,but more than proportionately to the income increase. 
D) demand will not change. 
A) demand for the good will decrease. 
B) demand for the good will increase,but less than proportionately to the income increase. 
C) demand for the good will increase,but more than proportionately to the income increase. 
D) demand will not change.

Question 12

The nation's commodity terms of trade times the productivity index in its export sector gives the nation's

Accepted Answer

A) income terms of trade 
B) double factoral terms of trade 
C) single factoral terms of trade 
D) barter terms of trade 
A) income terms of trade 
B) double factoral terms of trade 
C) single factoral terms of trade 
D) barter terms of trade

Question 13

Why did developing nations that switched from a policy of import substitution to a policy of export promotion generally grow faster during the past decade?

Accepted Answer

The developing countries that switched f

Question 14

Which of the following is false with respect to traditional trade theory?

Accepted Answer

A) it can incorporate changes in factor endowments and technology 
B) it leads to the best allocation of resources at any point in time 
C) it is a dynamic theory 
D) it is based on comparative advantage 
A) it can incorporate changes in factor endowments and technology 
B) it leads to the best allocation of resources at any point in time 
C) it is a dynamic theory 
D) it is based on comparative advantage

Question 15

In the 2000s,the most rapid rate of economic growth has been observed in

Accepted Answer

A) rich countries. 
B) globalizers. 
C) nonglobalizers. 
D) Rate of growth have been roughly equivalent among all groups. 
A) rich countries. 
B) globalizers. 
C) nonglobalizers. 
D) Rate of growth have been roughly equivalent among all groups.

Question 16

List four of the Millennium Development Goals.

Accepted Answer

Halve extreme poverty and hunger relativ

Question 17

Explain why import substitution strategies have largely been less than successful.

Accepted Answer

High rates of effective protection have

Question 18

What is the advantage of a policy of import substitution?

Accepted Answer

A) setting up an industry to replace imports minimizes risk of failure because the market for the product already exists in the nation as evidenced by the nation's imports of the commodity 
B) It is easier for developing nations to protect their domestic market against foreign competition than to force developed nations to lower their trade barriers against their manufactured exports 
C) foreign firms are induced to establish tariff factories to overcome the tariff wall of developing nations 
D) all of the above. 
A) setting up an industry to replace imports minimizes risk of failure because the market for the product already exists in the nation as evidenced by the nation's imports of the commodity 
B) It is easier for developing nations to protect their domestic market against foreign competition than to force developed nations to lower their trade barriers against their manufactured exports 
C) foreign firms are induced to establish tariff factories to overcome the tariff wall of developing nations 
D) all of the above.

Question 19

What is the difference between import substitution and export orientation?

Accepted Answer

Import substitution is a strategy of sel

Question 20

According to traditional trade theory,a developing nation should export the commodity:

Accepted Answer

A) of its comparative advantage 
B) that it cannot produce relatively more efficiently 
C) that intensive in the nation's relatively scarce factor 
D) that is most differentiated. 
A) of its comparative advantage 
B) that it cannot produce relatively more efficiently 
C) that intensive in the nation's relatively scarce factor 
D) that is most differentiated.

Exam 11: International Trade and Economic Development

According to Nurkse,international trade was an engine of growth for:

Which are is not an advantage of export-oriented industrialization?

When a nation's commodity terms of trade deteriorate and its single factor terms of trade improve,the nation's welfare:

The following is not an example of an international commodity agreement.

(a)Why did large developing nations generally follow a policy of import substitution as a strategy for growth during the 1950s,1960s,and 1970s?Why was this not generally possible for small developing nations? (b)Why was the policy of import substitution generally a failure?

Which of the following is not part of the demand for a NIEO?

The policy of import substitution was most vigorously followed by:

The primary exports of developing nations tend to face demand that is _______ and supply that is _______.

MacBean found that the export instability faced by developing nations was:

In most developing countries,import substitution policies have resulted in

If the income elasticity of a good is positive but less than 1,as income increases

The nation's commodity terms of trade times the productivity index in its export sector gives the nation's

Why did developing nations that switched from a policy of import substitution to a policy of export promotion generally grow faster during the past decade?

Which of the following is false with respect to traditional trade theory?

In the 2000s,the most rapid rate of economic growth has been observed in

List four of the Millennium Development Goals.

Explain why import substitution strategies have largely been less than successful.

What is the advantage of a policy of import substitution?

What is the difference between import substitution and export orientation?

According to traditional trade theory,a developing nation should export the commodity:

Introduction

The Law of Comparative Advantage

The Standard Theory of International Trade

Demand and Supply, offer Curves, and the Terms of Trade

Factor Endowments and the Heckscher-Ohlin Theory

Economies of Scale, imperfect Competition, and International Trade

Economic Growth and International Trade

Economic Growth and International Trade

Nontariff Trade Barriers and the New Protectionism

Economic Integration: Customs Unions and Free Trade Areas

International Resource Movements and Multinational Corporations

Balance of Payments

Foreign Exchange Markets and Exchange Rates

Exchange Rate Determination

The Price Adjustment Mechanism With Flexible and Fixed Exchange

The Income Adjustment Mechanism and Synthesis of Automatic

Open-Economy Macroeconomics: Adjustment Policies

Prices and Output in an Open Economy: Aggregate Demand and Aggregate Supply

Flexible Versus Fixed Exchange Rates, the European Monetary System, and Macroeconomic Policy Coordination

The International Monetary System: Past,present,and Future

Filters

The primary exports of developing nations tend to face demand that is _ and supply that is _.