Exam 14: International Trade

At one time,it was believed that the way for a nation to prosper was to export as much as possible while importing as little as possible.More money would flow into a country than out of a country.Is this really a sound economic strategy? What is the relationship between exports and imports?

I Robot starring Will Smith was filmed in Vancouver.Explain how the export of movies affects our GDP.

Table 14-2 Alpha can produce either 18 oranges or 9 apples an hour, while Omega can produce either 16 oranges or 4 apples an hour. -Refer to Table 14-2.What are the opportunity costs of producing 1 orange for Alpha and Omega?

What impact would introducing a tariff on vitamin E have?

What benefits are to be gained from countries producing according to the law of comparative advantage? What if a country is absolutely more productive in all goods?

What basic concept related to international trade is the most important?

Which of the following statements most accurately describes the amount of international trade?

A country with relatively abundant supplies of labour is unlikely to have a comparative advantage in the production of labour-intensive goods as a result.

Import quotas generate more government revenue than a tariff that is designed to allow the same level of imports.

Cheap labour is by far the primary source of comparative advantage.

In Bangladesh,one person can produce 330 pounds of rice or 110 shirts in one year.In Singapore,one person can produce 400 pounds of rice or 200 shirts in one year.What is the result?

The fact that some foreign nations are able to use less expensive labour to compete in Canadian product markets proves that foreign workers are exploited.

What is the effect of opening trade between countries?

Suppose that Iceland can produce 32 units of food per person per year or 16 units of clothing per person per year,but Lavaland can produce 36 units of food per person per year or 18 units of clothing per person per year.Which of the following statements is the most accurate?

Politicians often argue for tariff increases in order to reduce the size of a balance of trade deficit.If tariffs are increased,what is the long-run effect most likely to be?

Suppose Edland can produce either 30 units of good A or 30 units of good Z,and Georgeland can produce either 150 units of good A or 200 units of good Z.For them both to benefit from trade,how much will each unit of Z exchange for?

If Canada could produce 1 tonne of potatoes or 0.5 tonnes of wheat per worker per year,while Ireland could produce 3 tonnes of potatoes or 2 tonnes of wheat per worker per year,under what circumstances can there be mutual gains from trade?

In Samoa,the opportunity cost of producing 1 coconut is 4 pineapples,while in Guam,the opportunity cost of producing 1 coconut is 5 pineapples.What can we conclude in this situation?

If it can be shown that a tariff on steel imports will increase employment in the steel industry,we can be sure the effect of the tariff on Canadian employment will be positive.

Why does trade make all parties better off?