International Economics Theory and Policy 10th Edition By Paul R. Krugmanth Edition

Test Bank For International Economics Theory and Policy 10th Edition By Paul R. Krugman

ISBN-10:0133423646 , ISBN-13:978-0133423648

Chapter 11 Commerce Policy in Creating International locations

11.1 Import-Substituting Industrialization

1) The toddler business argument was an essential theoretical foundation for

A) neo-colonialist concept of worldwide exploitation.

B) import-substituting industrialization.

C) historiography of the commercial revolution in Western Europe.

D) the East-Asian miracle.

E) the discount of tariffs on Western Europe.

Reply: B

Web page Ref: 275-281

Issue: Simple

2) Refined theoretical arguments supporting import-substitution insurance policies embrace

A) phrases of commerce results.

B) scale economic system arguments.

C) studying curve concerns.

D) the issue of appropriability.

E) home market failure arguments.

Reply: D

Web page Ref: 275-281

Issue: Simple

3) Which of the next might clarify why the phrases of commerce of growing international locations may deteriorate over time?

A) Creating nation exports consist primarily of manufactured items.

B) Creating nation exports consist primarily of major merchandise.

C) Commodity export costs are decided in extremely aggressive markets.

D) Commodity export costs are solely decided by growing international locations.

E) Creating nation exports are too various.

Reply: C

Web page Ref: 275-281

Issue: Simple

4) Which commerce technique have growing international locations used to limit imports of manufactured items in order that the home market is preserved for dwelling producers?

A) worldwide commodity settlement

B) export promotion

C) multilateral contract

D) import substitution

E) export subsidies

Reply: D

Web page Ref: 275-281

Issue: Simple

5) The toddler business argument is that

A) comparative benefit is irrelevant to financial progress.

B) growing international locations have a comparative benefit in agricultural items.

C) growing international locations have a comparative benefit in manufacturing.

D) growing international locations have a possible comparative benefit in manufacturing.

E) growing international locations haven’t any probability to compete with industrialized international locations.

Reply: D

Web page Ref: 275-281

Issue: Simple

6) The toddler business argument requires lively authorities involvement

A) provided that the federal government forecasts are correct.

B) provided that some market failure may be recognized.

C) provided that the business will not be one already dominated by industrial international locations.

D) provided that the business has a excessive worth added.

E) provided that the business is independently capable of earn excessive returns.

Reply: B

Web page Ref: 275-281

Issue: Simple

7) The imperfect capital market justification for toddler business promotion

A) assumes that new industries will are inclined to have low earnings.

B) assumes that toddler industries will quickly mature.

C) assumes that toddler industries will probably be in merchandise of comparative benefit.

D) assumes that banks can allocate assets effectively.

E) assumes that growing nation will reward the donor nation.

Reply: A

Web page Ref: 275-281

Issue: Simple

8) America, because it started its lengthy and profitable progress within the early nineteenth century, consciously promoted home manufacturing by way of such actions as tariffs, Clay’s American System, and many direct subsidies to railroads, canal firms, farmers (free land) and so on. Immediately we view this blatant instance of huge scale and intensive import-substitution industrialization as having been very profitable. Touch upon this.

Reply: That is an fascinating level and emphasizes that financial fashions are typically a-historical. That’s, they lack the historic perspective; and thus could also be deceptive as guides to long term points, resembling financial progress. This additionally means that commerce coverage per se is nearly definitely not ample to elucidate why some international locations develop and others don’t.

Web page Ref: 275-281

Issue: Average

9) Confer with above determine. If OmL1 staff are employed in manufacturing then what’s the marginal productiveness of labor in manufacturing?

Reply: OmWm.

Web page Ref: 275-281

Issue: Average

10) Confer with above determine. If OmL1 staff are employed in manufacturing then what’s the marginal productiveness of labor in agriculture?

Reply: OfWf.

Web page Ref: 275-281

Issue: Average

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