Question 1

The terms of trade for most developing nations over the last thirty years have generally been

Accepted Answer

A)  improving 
B)  about the same 
C)  worsening 
D)  depend largely on the export commodity 
A)  improving 
B)  about the same 
C)  worsening 
D)  depend largely on the export commodity D

Question 2

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 A

Question 3

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 from a policy of import substitution to export promotion generally grew faster than those developing countries that did not make that switch because production for export and international competition stimulated efficiency throughout the economy and resulted in domestic prices more closely reflecting the true opportunity costs of commodities and inputs.

Question 4

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 5

Explain why international trade cannot be expected to be the primary engine of growth for today's developing nations.

Accepted Answer

The supply and demand conditio

Question 6

List the current problems facing developing countries?

Accepted Answer

Extreme poverty,particularly i

Question 7

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

Question 8

The following region of the world has been the least successful in creating economic development and growth over the last thirty years

Accepted Answer

A)  Latin America 
B)  Asia 
C)  Africa 
D)  Europe 
A)  Latin America 
B)  Asia 
C)  Africa 
D)  Europe

Question 9

List four of the Millennium Development Goals.

Accepted Answer

Halve extreme poverty and hunger relativ

Question 10

Those nations that liberalized trade during the past decade

Accepted Answer

A)  grew faster than those that did not 
B)  grew more slowly than those that did not 
C)  grew at about the same rate as those that did not 
D)  any of the above 
A)  grew faster than those that did not 
B)  grew more slowly than those that did not 
C)  grew at about the same rate as those that did not 
D)  any of the above

Question 11

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 12

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

Accepted Answer

High rates of effective protection have

Question 13

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

Question 14

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 15

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 16

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.

Question 17

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 18

Developing nations often experience wildly fluctuating export prices for their primary products because of:

Accepted Answer

A)  inelastic and stable demand and supply 
B)  elastic and unstable demand and supply 
C)  inelastic and unstable demand and supply 
D)  elastic and stable demand and supply 
A)  inelastic and stable demand and supply 
B)  elastic and unstable demand and supply 
C)  inelastic and unstable demand and supply 
D)  elastic and stable demand and supply

Question 19

(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 20

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.

Exam 11: International Trade and Economic Development

The terms of trade for most developing nations over the last thirty years have generally been

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

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?

The policy of import substitution was most vigorously followed by:

Explain why international trade cannot be expected to be the primary engine of growth for today's developing nations.

List the current problems facing developing countries?

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

The following region of the world has been the least successful in creating economic development and growth over the last thirty years

List four of the Millennium Development Goals.

Those nations that liberalized trade during the past decade

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

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

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

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

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

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

In most developing countries,import substitution policies have resulted in

Developing nations often experience wildly fluctuating export prices for their primary products because of:

(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?

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

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 Heckscherohlin Theory

Economies of Scale, imperfect Competition, and International Trade

Economic Growth and International Trade

Trade Restrictions: Tariffs

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 Rates

The Income Adjustment Mechanism and Synthesis of Automatic Adjustments

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 Answers to Selected Problems on Web

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