import substitution strategies substitute cheaper imports for items that are too expensive to produce domestically countries that adopt export promotion instead of import substitution strategies usually have higher growth rates export promotion is a strategy that is often used in conjunction with import substitution import substitution is a strategy to develop local industries instead of importing certain items export promotion benefits from a relatively weak domestic currency countries adopting import substitution strategies typically advocate free trade

import substitution strategies substitute cheaper imports for items that are too expensive to produce domestically countries that adopt export promotion instead of import substitution strategies usually have higher growth rates export promotion is a strategy that is often used in conjunction with import substitution import substitution is a strategy to develop local industries instead of importing certain items export promotion benefits from a relatively weak domestic currency countries adopting import substitution strategies typically advocate free trade

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Which of the following was a positive side-effect of Latin America’s import substitution industrialization policies? Select one: a. the growth of transportation and infrastructure facilities b. Balanced fiscal budgets for Latin American governments c. Lower prices of industrial goods for Latin American citizens d. Declining food supplies and agroexport production
To focus on producing one thing to improve productivity is known as: a) International trade b) Supply and Demand c) Absolute Advantage d) Specialization
The United States President decides to raise tariffs on all imports of goods and services from China by 30%. Several studies and analyses have highlighted the costs and benefits of this policy. Which of the following are more likely to be unbiased studies/analyses, and which ones are more likely to be biased? -An article on the New York Times by a Nobel-prize winning economist who serves in the current Administration A peer-reviewed article published on the Scientific Journal "Econometrica" by a Nobel-prize winning economist who serves in the current Administration A working paper (i.e. not yet published) by an Economist which was funded through a research grant from the National Science Foundation to study trade policy A working paper (i.e. not yet published) by an Economist which was funded through a research grants awarded by the a think- tank that supports the ideology of the opposition party A. More likely to be biased B. More likely to be factual/unbiased C. More likely to be…
Which (if any) of these statements are correct? Empirical results show that trade between two partners tends to be higher among partners who share a language. tends to be higher if there is a physical or administrative border between the partners. tends to be higher if the two partners are in the same customs union. tends to be higher if the two partners do not share colonial history.
A common market takes place when (in the presence of tariffs on imports) Select one: any 2 countries liberalize the movement of their labor (and capital) any 2 countries align their monetary policies any 2 countries have free trade between them none of the above
In the specific factor model with labour as a mobile factor, introducing trade lowers the welfare of workers increases output and consumption in the world. increases the welfare of all the owners of specific factors in Home. induces a Pareto improvement for the economy that exports more.
Free trade between nations generally results in Multiple Choice mutually beneficial exchange relationships. industrialized nations gaining at the expense of developing nations. higher prices for imported goods. an increase of jobs in developed nations.
labor migration from one country to another - a) leads to international convergence of wage rates and to greater global economic efficiency b) raises wage rates in the country to which workers migrate C) intensifies the differences in relative resource endowments among nations D) increases the potential for international trade based on comparative advantage
Match each argument for protectionism with the best counter-argument. Protectionism helps new industries develop. Protectionism prevents firms from strategically dumping goods to monopolize the market. Trade creates more jobs than it destroys, i.e., free trade leads to net job creation. Protectionism saves jobs. Answer Bank Many companies have succeeded without protectionist policies. Trade leads to higher wages and opens up more opportunities for individuals in less developed nations. It is often difficult to distinguish between predatory pricing and legal pricing strategies. Protectionism prevents the exploitation of foreign workers who are underpaid.