The policies of the World Bank and the International Monetary Fund are supported by O A. those who favour a hands-off view. OB. the "No-Left Alone, Markets Fail Often" camp. OC. those who favour a hands-on view. OD. anti-globalization critics.

If the removal of trade banters is so beneficial to international economic growth, why would a nation continue to restrict trade on some imported or exported products?

What is splitting up the value chain?

How can governments identify good candidates for infant industry protection? Can you suggest some key characteristics of good candidates? Why are Industries like computers not good candidates for infant industry protection?

Why do you think that the GAIT rounds and, more recently, WTO negotiations have become longer and more difficult to resolve?

Why do low-income countries like Brazil, Egypt, or Vietnam have lower environmental standards than high-income countries like the Germany, Japan, or the United States?

How does comparative advantage lead to gains from trade?

Are differences in geography behind the differences in absolute advantages?

Who gains and who loses from trade?

Table 33.15 shows how the average costs of production for semiconductors (the chips In computer memories) change as the quantity of semiconductors built at that factory increases. Based on these data, sketch a curve with quantity produced on the horizontal axis and average cost of production on the vertical axis. How does the curve illustrate economies of scale? If the equilibrium quantity of semiconductors demanded is 90,000, can this economy take full advantage of economies of scale? What about if quantity demanded is 70,000 semiconductors? 50,000 semiconductors? 30,000 semiconductors? Explain how international trade could make it possible for even a small economy to take full advantage of economies of scale, while also benefiting from competition and the variety offered by several producers.