D270 Final Garcia Verified Questions
With 100% Correct Answers
\Q\.in the Vietname Catfish Dispute case, what are Vietnam's advantages - ANSWER-✔1)
winterless climate allows for growth
2) one species can surface to breathe
3) vietnam's lack of restrictions
4) lower labor rates
\Q\.collective, governmental actions to influence international trade - ANSWER-✔protectionism
\Q\.Why are displaced workers at a significant disadvantage - ANSWER-✔- they are least likely
to find another job
- in general, they earn less if they find another job
- older ones typically lack education to gain skills
\Q\.what is the infant industry argument - ANSWER-✔holds that a government should shield an
emerging industry from foreign competition by guaranteeing it a large share of the domestic
market until it can compete on its own
\Q\.production becomes more competitive over time because of: - ANSWER-✔- increased
economies of scale
- greater work efficiency
\Q\.who bares the cost of protecting infant industries? - ANSWER-✔consumers - pay high prices
,taxpayers - their taxes go to subsidies
\Q\.countries seek to promote industrialization because that type of production... - ANSWER-
✔1) can use surplus agricultural workers
2) brings in investment funds
3) diversifies the economy
4) brings faster growth than primary products
\Q\.protectionist arguments to spur local industrialization are based on these assumptions: -
ANSWER-✔1) surplus workers can increase manufacturing output more easily than agricultural
output
2) import restrictions lead to foreign investment inflows, which provide manufacturing jobs
3) diversification in the economy will reduce dependence on agricultural an raw materials,
which are volatile
4) markets for industrial products grow faster than markets for agriculture or raw materials
\Q\.what is the industrialization argument - ANSWER-✔Although a country may develop an
inefficient and non-globally competitive industrial sector, it will achieve economic growth by
enabling the unemployed and underemployed to work in the industry
\Q\.when a country shifts from agriculture to industry... - ANSWER-✔1) Output may increase if
agricultural workers produced little before
2) Demands on social and political services in cities may increase
3) Developmental possibilities in the agricultural sector may be overlooked
4) Industrial jobs may not be forthcoming
\Q\.FDI may increase if... - ANSWER-✔import restrictions are present
,\Q\.Although prices for commodities fluctuate markedly, a shift to production of manufactures
creates... - ANSWER-✔competitive risk
\Q\.terms of trade may deteriorate because... - ANSWER-✔a) demand for primary products
grows slower than manufactured ones
b) production cost savings for primary costs will be passed on to consumers
\Q\.Restricting imports to boost local production of products they would otherwise import -
ANSWER-✔import substitution
\Q\.A country's promotion of industries with export potential so as to increase economic
growth - ANSWER-✔export-led production
\Q\.industrialization emphasizes either: - ANSWER-✔products to sell domestically or products
to export
\Q\.what are the two options that can affect competitive position broadly? - ANSWER-✔a.
Depreciating or devaluing its currency, which make products cheaper in relation to foreign
products
b. Relying on fiscal and monetary policy to bring lower price increases in relation to other
countries
\Q\.comparable access argument - ANSWER-✔Holds that industries are entitled to the same
access to foreign markets as foreign industries are entitled to theirs
\Q\.Either the country has access to alternative sources for the product or its consumers are
willing to do without it. - ANSWER-✔believability
, \Q\.Exports of the restricted product must be significant to influential parties in the producer
country. - ANSWER-✔importance
\Q\.Successful countries' threats to levy trade restrictions to coerce other countries to change
their policies must... - ANSWER-✔be believable and involve important
\Q\.export restrictions may... - ANSWER-✔1) Raise world Prices
2) Require more controls to prevent smuggling
3) Be ineffective for digital products
4) Lead to product substitution or new ways to produce the good
5) Keep domestic prices down by increasing domestic supply
6) Give producers less incentive to increase output
\Q\.fear producers will lower their export prices in order to... - ANSWER-✔drive producers out
of business in importing countries
\Q\.2 adverse consequences for importing economy - ANSWER-✔1) foreign country shifts its
unemployment abroad through subsidies
2) if high entry barriers are present, surviving producers may charge exorbitant prices
\Q\.exporting below cost or below home-country price - ANSWER-✔dumping
\Q\.dumping may... - ANSWER-✔- be used to introduce a new product
- be hard to product
- cause higher prices or subsidies in the exporting country
With 100% Correct Answers
\Q\.in the Vietname Catfish Dispute case, what are Vietnam's advantages - ANSWER-✔1)
winterless climate allows for growth
2) one species can surface to breathe
3) vietnam's lack of restrictions
4) lower labor rates
\Q\.collective, governmental actions to influence international trade - ANSWER-✔protectionism
\Q\.Why are displaced workers at a significant disadvantage - ANSWER-✔- they are least likely
to find another job
- in general, they earn less if they find another job
- older ones typically lack education to gain skills
\Q\.what is the infant industry argument - ANSWER-✔holds that a government should shield an
emerging industry from foreign competition by guaranteeing it a large share of the domestic
market until it can compete on its own
\Q\.production becomes more competitive over time because of: - ANSWER-✔- increased
economies of scale
- greater work efficiency
\Q\.who bares the cost of protecting infant industries? - ANSWER-✔consumers - pay high prices
,taxpayers - their taxes go to subsidies
\Q\.countries seek to promote industrialization because that type of production... - ANSWER-
✔1) can use surplus agricultural workers
2) brings in investment funds
3) diversifies the economy
4) brings faster growth than primary products
\Q\.protectionist arguments to spur local industrialization are based on these assumptions: -
ANSWER-✔1) surplus workers can increase manufacturing output more easily than agricultural
output
2) import restrictions lead to foreign investment inflows, which provide manufacturing jobs
3) diversification in the economy will reduce dependence on agricultural an raw materials,
which are volatile
4) markets for industrial products grow faster than markets for agriculture or raw materials
\Q\.what is the industrialization argument - ANSWER-✔Although a country may develop an
inefficient and non-globally competitive industrial sector, it will achieve economic growth by
enabling the unemployed and underemployed to work in the industry
\Q\.when a country shifts from agriculture to industry... - ANSWER-✔1) Output may increase if
agricultural workers produced little before
2) Demands on social and political services in cities may increase
3) Developmental possibilities in the agricultural sector may be overlooked
4) Industrial jobs may not be forthcoming
\Q\.FDI may increase if... - ANSWER-✔import restrictions are present
,\Q\.Although prices for commodities fluctuate markedly, a shift to production of manufactures
creates... - ANSWER-✔competitive risk
\Q\.terms of trade may deteriorate because... - ANSWER-✔a) demand for primary products
grows slower than manufactured ones
b) production cost savings for primary costs will be passed on to consumers
\Q\.Restricting imports to boost local production of products they would otherwise import -
ANSWER-✔import substitution
\Q\.A country's promotion of industries with export potential so as to increase economic
growth - ANSWER-✔export-led production
\Q\.industrialization emphasizes either: - ANSWER-✔products to sell domestically or products
to export
\Q\.what are the two options that can affect competitive position broadly? - ANSWER-✔a.
Depreciating or devaluing its currency, which make products cheaper in relation to foreign
products
b. Relying on fiscal and monetary policy to bring lower price increases in relation to other
countries
\Q\.comparable access argument - ANSWER-✔Holds that industries are entitled to the same
access to foreign markets as foreign industries are entitled to theirs
\Q\.Either the country has access to alternative sources for the product or its consumers are
willing to do without it. - ANSWER-✔believability
, \Q\.Exports of the restricted product must be significant to influential parties in the producer
country. - ANSWER-✔importance
\Q\.Successful countries' threats to levy trade restrictions to coerce other countries to change
their policies must... - ANSWER-✔be believable and involve important
\Q\.export restrictions may... - ANSWER-✔1) Raise world Prices
2) Require more controls to prevent smuggling
3) Be ineffective for digital products
4) Lead to product substitution or new ways to produce the good
5) Keep domestic prices down by increasing domestic supply
6) Give producers less incentive to increase output
\Q\.fear producers will lower their export prices in order to... - ANSWER-✔drive producers out
of business in importing countries
\Q\.2 adverse consequences for importing economy - ANSWER-✔1) foreign country shifts its
unemployment abroad through subsidies
2) if high entry barriers are present, surviving producers may charge exorbitant prices
\Q\.exporting below cost or below home-country price - ANSWER-✔dumping
\Q\.dumping may... - ANSWER-✔- be used to introduce a new product
- be hard to product
- cause higher prices or subsidies in the exporting country
