1) Strategic trade policy a) is designed to provide equal treatment for all industries b) is used most frequently to support firms in perfectly competitive industries c) often involves subsidies and other support for high-technology firms in concentrated industries d) is practiced by only one major industnal nation today 2LExror
1) Strategic trade policy a) is designed to provide equal treatment for all industries b) is used most frequently to support firms in perfectly competitive industries c) often involves subsidies and other support for high-technology firms in concentrated industries d) is practiced by only one major industnal nation today 2LExror
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![1) Strategic trade policy
a) is designed to provide equal treatment for all industries
b) is used most frequently to support firms in perfectly competitive industries
c) often involves subsidies and other support for high-technology firms in concentrated industries
d) is practiced by only one major industrial nation today
2) Export promotion is a development strategy in which countries
a) try to industrialize by supporting manufactured products in which they have a potential comparative
advantage
b) use multilateral commodity contracts to stabilize export prices
c) seek aid from advanced nations to advertise their traditional export products
d) try to create new markets for primary product exports
3) The trade problems of the developing countries have included all of the following except
a) worsening terms of trade
b) rising prices of primary-product exports
c) unstable export markets
d) limited export access to the markets of industrial countries
4) Potential dynamic effects of economic integration include all of the following except
a) lower production costs because of economies of scale from serving a larger intemal market
b) greater efficiency and innovation because of more intense competition among firms from all member countries
c) a higher level of investment and more rapid economic growth
d) trade creation because of importing from a more efficient partner country](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7107c55e-099e-460d-b7b0-3a1d15cbeebb%2F5b6928dd-88e5-4178-9180-8719b155540e%2F723zkp7_processed.jpeg&w=3840&q=75)
Transcribed Image Text:1) Strategic trade policy
a) is designed to provide equal treatment for all industries
b) is used most frequently to support firms in perfectly competitive industries
c) often involves subsidies and other support for high-technology firms in concentrated industries
d) is practiced by only one major industrial nation today
2) Export promotion is a development strategy in which countries
a) try to industrialize by supporting manufactured products in which they have a potential comparative
advantage
b) use multilateral commodity contracts to stabilize export prices
c) seek aid from advanced nations to advertise their traditional export products
d) try to create new markets for primary product exports
3) The trade problems of the developing countries have included all of the following except
a) worsening terms of trade
b) rising prices of primary-product exports
c) unstable export markets
d) limited export access to the markets of industrial countries
4) Potential dynamic effects of economic integration include all of the following except
a) lower production costs because of economies of scale from serving a larger intemal market
b) greater efficiency and innovation because of more intense competition among firms from all member countries
c) a higher level of investment and more rapid economic growth
d) trade creation because of importing from a more efficient partner country
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