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Opponents of globalization argue that falling trade barriers

A.             allow firms to move manufacturing activities to countries with lower wage rates.

B.             create manufacturing jobs in wealthy advanced economies.

C.            force countries to maintain manufacturing in their home countries regardless of wage rates.

D.            reduce the pool of global labor.

 

 

 

 

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Chika Ilonah
Chika IlonahLv10
20 Oct 2020

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Related questions

1 The infant industry argument is that:

a.protectionism promotes complete specialization in the country on the basis of comparative advantage.

b.new industries should be protected from foreign competition until they have had adequate time to develop.

c.protectionism should be used to create a level playing field for the domestic firms to compete with foreign firms.

d.developing industries should be allowed to face foreign competition.

e.those industries that produce products for infants should be protected.

 

2. One of the primary objectives of the WTO is:

  a. to enable western countries to emerge as major players in international trade.
  b. to redistribute wealth from the first world to the third world countries.
  c. to create trade restrictions across the countries.
  d. to enable certain countries to maintain their autarkic conditions.
  e. to reduce trade barriers created by the different countries.

1. According to the Fisher effect, if Swedish inflation were to fall permanently from a constant rate of 5% per year to a constant rate of 2% per year, then in the long-run:

a. Swedish interest rates would be higher by a 2/5 percentage point per year compared to their initial level, all else equal.

b. Swedish interest rates would be higher by 5/2 percentage points per year compared to their initial level, all else equal.

c. Swedish interest rates would be lower by a 2/5 percentage point per year compared to their initial level, all else equal.

d. Swedish interest rates would be higher by 3 percentage points per year compared to their initial level, all else equal.

e. Swedish interest rates would be lower by 3 percentage points per year compared to their initial level, all else equal.

 

2. The link between prices of similar goods sold in different countries, as suggested by purchasing power parity,

a. is strengthened when monopolistic or oligopolistic practices in goods markets interact with trade barriers.

b. is weakened when monopolistic or oligopolistic practices in goods markets interact with trade barriers.

c. is strengthened when there are monopolistic or oligopolistic practices in goods markets, regardless of whether there are trade barriers.

d. is unrelated to the existence of monopolistic or oligopolistic practices in goods markets; that link is only affected by the existence of trade barriers.

e. is weakened when there are monopolistic or oligopolistic practices in goods markets, regardless of whether there are trade barriers.

 

3. Bela Balassa's theory would explain that it is more costly to get a haircut in Norway than in Mexico because:

a. Norwegians have a more inelastic demand for haircuts than Mexicans.

b. Norwegian have a more elastic demand for haircuts than Mexicans.

c. Norwegian barber wages are driven up by the higher wages (compared to Mexico) offered in the oil sector, which has higher labor productivity than the oil sector in Mexico.

d. Mexican barbers are being exploited.

e. as barbers, Norwegian barbers are more productive than Mexican barbers.

31. A country's tax system influences the attractiveness of investing in that country and affects the relative level of profitability for an MNC.

a. True

b. False

32. Points inside a production possibilities frontier represent

a. unattainable production combinations

b. efficiency

c. situations where supply exceeds demand

d. unemployment of resources

33. Firms in a high-wage nation like the U.S. can compete effectively with imports from low-wage nations if

a. the U.S. reduces tariffs on imports

b. low-wage nations impose tariffs on U.S. made goods

c. labor productivity is higher in the low-wage nation

d. labor productivity is higher in the U.S.

34. Assume that production in the United States is valued at $100,000. National income is therefore $100,000. Of their income, workers save $2000, pay $6,000 in taxes, spend $89,000 on consumer goods, and spend $2000 on imports. Businesses spend $5,000 in new investment spending. And, foreigners spend $1000 on exports. To avoid any problems of inflation or unemployment, the government should have a budget deficit or surplus of:

a. $2,000 surplus

b. $1,000 deficit

c. $2,000 deficit

d. $1000 surplus

e. $0 deficit

35. Autarky means-----------------------------------------------------------------

a. the absence of government

b. lack of agriculture

c. self-sufficient, in the absence of international trade

d. short of exchange rates

36. The more people there are----------------------, the less the public as a whole will spend on goods and services.

a. unemployed

b. underemployed

c. employed

d. as discouraged workers

37, Which of the following theories holds that countries will produce and export products that use large amounts of production factors that they have in abundance?

a. Mercantilism

b. The theory of absolute advantage

c. The factor endowment theory

d. None of the above.

38. Suppose that a consumer has a marginal propensity to consume of 0.79. If this consumer earns an extra $1220, her saving would be expected to increase by-----------------------------

39. Many countries in Asia, Africa, and South America-----------------------

a. Are developing countries

b. Are industrialized nations

c. Have a high demand for nonessential products

d. Do not trade

40. Which two of the following are regarded as the main aims of the World Trade Organization (WTO)?

a) To eliminate discrimination in world trade

b) To provide financial assistance to countries with debt

c) To reduce tariff barriers

d) To make infant industry protection illegal

e) To help give preferences to smaller economies

b) and e) a) and c) a) and d) c) and e) b) and d)

41. Last year Sophia's nominal income increased by 12% while the price level rose by 5.5%. Consequently, Sophia's real income:

a. rose by approximately 7%

b. fell by approximately 1%

c. rose by approximately 2%

d. ------------------------------------

42. Consumer surplus

a. is always positive.

b. for a particular unit of consumption is computed by taking the difference between quantity demand and quantity supplied.

c. for all units consumed is the area below demand and below market price over all the units consumed.

d. added to producer surplus provides a measure of the net gain to society from the production and consumption of the good.

43. A decline in Real GDP for six or more consecutive months is called-------------------------------

a. A trough

b. A recession

c. An expansion

d. A recovery

44. What do we call the situation where capital grows faster than the labor force?

a. economic growth

b. technological change

c. productivity growth

d. capital deepening

45. The terms of trade are-------------------------------------------

a. the cost of transportation between countries

b. the ratio of wages in two countries

c. the terms which are used in the trade negotiations

d. the rate at which two products can be exchanged

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