Exam 1: the International Economy and Globalization

What are the essential arguments in favor of free trade?

A feasible effect of international trade is that:

Empirical research indicates that ____ best enhances productivity gains for firms and industries.

What are the challenges of the international trading system?

Multilateral trade negotiations have led to

If a nation has an open economy,it means that the nation allows private ownership of capital.

A sudden shift from import tariffs to free trade may induce short-term unemployment in:

The benefits of international trade accrue in the forms of lower domestic prices,development of more efficient methods and new products,and a greater range of consumption choices.

Opening the economy to international trade tends to lessen inflationary pressures at home.

International trade forces domestic firms to become more competitive in terms of:

A firm's ____,relative to that of other firms,is generally regarded as the most important determinant of competitiveness.

Free traders maintain that an open economy is advantageous in that it provides all of the following except:

____ is the ability of a firm/industry,under free and fair market conditions,to design,produce,and market goods and services that are better and/or cheaper than those of other firms/industries.

Although free trade provides benefits for consumers,it is often argued that import protection should be provided to domestic producers of strategic goods and materials vital to the nation's security.

In the long run,competitiveness depends on an industry's natural resources,its stock of machinery and equipment,and the skill of its workers in creating goods that people want to buy.

Restrictive trade policies have resulted in U.S.producers of minerals and metals supplying all of the U.S.consumers' needs.

Recent pressures for protectionism in the United States have been motivated by all of the following except:

Increased globalization is fostered by:

A reduced share of the world export market for the United States would be attributed to:

Which of the following is a fallacy of international trade?