Exam 18: International Trade, Comparative Advantage, and Protectionism

Refer to the information provided in Figure 18.2 below to answer the questions that follow. Figure 18.2 -Refer to Figure 18.2. the U.S. has

Refer to the information provided in Table 18.1 below to answer the questions that follow. Table 18.1 -Refer to Table 18.1. Guatemala has

In 2003, the WTO ruled that U.S. tariffs on ________ were unfair and allowed retaliatory tariffs on U.S. products.

Specialization and trade allow a country to

Refer to the information provided in Figure 18.3 below to answer the questions that follow. Figure 18.3 -Refer to Figure 18.3. The domestic price of shoes is $80. After trade the price of a pair of shoes is $60. After trade this country will import

If the opportunity cost of corn to wheat is 3:1 in the United States and 5:1 in France, both countries would benefit from trade if the actual terms of trade between corn and wheat were 4:1.

In general, for any two countries, there are many exchange rates that will lead to gains from trade, based on comparative advantage.

A country enjoys a comparative advantage in the production of a good if that good can be produced at a lower cost in terms of other goods.

Refer to the information provided in Figure 18.5 below to answer the questions that follow. Figure 18.5 -Refer to Figure 18.5. The domestic price of oil is $130 per barrel, and the world price of oil is $120 per barrel. If the domestic government imposes a tariff of $________ per barrel, it will eliminate all oil imports and achieve tariff revenues of $________.

In the year 1976, the United States switched from running a trade ________ to running a trade ________.

It costs a television manufacturer $1,000 to produce a plasma television. This manufacturer sells these televisions abroad for $750. This is an example of

Over time, the general movement in the United States has been toward

Refer to the information provided in Table 18.2 below to answer the questions that follow. Table 18.2 -Refer to Table 18.2. Which terms of trade benefits both countries?

A tariff on tires benefits domestic producers of tires.

The Heckscher-Ohlin theorem explains why the U.S. both imports and exports cars.

For any pair of nations and goods, if each country has a comparative advantage in the production of one product, it is reasonable to expect that specialization and trade will benefit both countries.

If the United States decreases the tariff on imported tuna steaks, this will

The pharmaceutical industry depends on highly trained workers, who are abundantly available in India. The automobile industry depends on the availability of a large stock of physical capital with which the United States is well endowed. According to Heckscher-Ohlin theorem

The advantage in the production of a product enjoyed by one country over another when it uses fewer resources to produce that product than the other country does is

Refer to the information provided in Figure 18.1 below to answer the questions that follow. Figure 18.1 -Refer to Figure 18.1. The opportunity cost of producing a bushel of soybeans in the United States is