Questions Assignment

What does the term 'import demand' describe?

An import tariff imposed by a large country affects income distribution in the following way:

Use your knowledge about trade policy to evaluate each of the following statements: 

1. 'An excellent way to reduce unemployment is to enact tariffs on imported goods'
2. 'Tariffs had a more negative effect on welfare in large countries than in small countries'
3. 'Automobile manufacturing jobs are going to Mexico because wages are so much lower than in the US.  As a result, we should implement tariffs on automobiles equal to the difference between U.S. and Mexican wage rates'

True or false?

Suppose that workers involved in manufacturing are paid less than all other workers in the economy. What would be the ffect on the real income distribution within the economy if there were a substantial tariff levied on manufactured goods?

Canada and Australia are mainly English-speaking countries with populations that are not too different in size (Canada is 60% larger). But Canadian trade is twice as large, relative to GDP, as Australia's. Why should this be the case?

Over the last few decades, East Asian economies have increased their share of world GDP. Similarly, intra-East Asian trade-that is, trade among East Asian nations-has grown as a share of world trade. More than that, East Asian countries do an increasing share of their trade with each other. Using the gravity model, explain why East Asian countries do an increasing share of their trade with each other.

In general, which of the following tends to promote the probability of trade volumes between two countries?

A century ago, most British imports came from relatively distant locations: North America, Latin America and Asia. Today, most British imports come from other European countries. How does this fit with the changing types of goods that make up world trade?

In the pre-World War I period, the UK imported primarily?

Over the past forty years the composition of developing-country exports has?

The sources of modern trade are largely rooted in?

The potential for gains from the rearrangement of production among countries is due to?

The claim that trade exploits a country and makes it worse off if its workers receive much lower wages than workers in other countries is shown by the Ricardian Model to?

In the multi-good, single-factor Ricardian model, the decisive factor in determining which country will produc a particular good is?

The degree of specialization predicted by the basic Ricardian model is?

Like the simple Ricardian model, the specific factors model?

As more labor is used, holding capital constant, ...?

In each of a specific factors economy, profit-maximizing employers will demand up to the point where?

Assume a specific factors economy produces two goods, cloth and food, and that when representing the output of this economy grphically, cloth is on the x-axis and food is on the y-axis. When the price of cloth increases by 1% and the price of food does not change..?

For trade to take place, a country must face a worl relative price that is?

Which of the following is not a possible explanation for why the relative supply curve for the world might be different from that for a specific factors economy? The other countries in the world could have different: 

1. Total amounts of available labor.
2. Levels of relative demand.
3. Technologies.
4. Total amount of land.

When an economy is open to trade, the relative price of a good is determined by?

The fundamental reason why trade potentially benefits a country is that it?

Within each country that opens itself to international trade:

• workers always lose while corporations always win
• some factor owners gain, but other factor owners lose
• there will be losses to the country's abundant factor
• there is a clearcut gain for all factor owners.