QUESTION 17 Textile workers in the United States would offer which of the following arguments to restrain international trade in textiles? A. infant industry B. national defense C. antidumping D. low foreign wages QUESTION 18 Which of the following statements concerning the infant industry argument is NOT correct? A. Infant industry protection tends to focus on labor-intensive industries. B. Infant industry protection is difficult to remove after the industry has matured. C. An infant industry is too underdeveloped to achieve comparative advantage. D. The management and workers in an infant industry may be too inexperienced to compete in world markets. QUESTION 19 A country has an absolute advantage in the production of a good if it can: A. consume less of a good than can another country. B. produce more of the good than can another country. C. produce less of the good than can another country. D. consume more of a good than can another country. QUESTION 20 If the steel industry argues for tariff protection by saying that steel is necessary to build military vehicles, it is using the: A. national defense argument. B. antidumping argument. C. protection against low foreign wages argument. D. infant industry argument.
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low foreign wages to restrain international trade in textiles. They may argue that foreign countries have lower wages, which allows them to produce textiles at a lower cost and therefore compete unfairly with American textile workers. For QUESTION 18, the Show more…
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The infant industry argument is that: a. Protectionism promotes complete specialization in the country based on comparative advantage. b. New industries should be protected from foreign competition until they have had adequate time to develop. c. Protectionism should be used to create a level playing field for domestic firms to compete with foreign firms. d. Developing industries should be allowed to face foreign competition. e. Those industries that produce products for infants should be protected.
Bailey C.
In which case is the national defense argument a valid one for tariff protection? a. When the crucial goods are depletable mineral resources. b. When stocks of the crucial goods can be cheaply stored. c. When a war with a neighboring country is feared. d. When production subsidies or stockpiling are prohibitively expensive Which of the following is not a part of the WTO’s stance on trade? a. Freer import policy for the cleanest foreign country must be matched by freedom of imports for polluter countries. b. Any trade barrier that reduces greenhouse-gas emissions is permissible. c. Tariffs that are implemented to conserve natural resources must not be used merely to shut out foreign goods. d. Any tax on imports must not exceed that on import competing products. The theorists most likely to argue that a state’s competitiveness is closely linked with the competitiveness of its MNCs are a. realists. b. historical materialists. c. interventionist liberals. d. orthodox liberals. States in the mercantilist period a. repealed the corn laws and increased their technology exports b. helped establish territorial unification and state authority c. viewed free trade as serving their interests. d. emphasized industrialization and agricultural exports as a means of gaining wealth.
Joe M.
Consider each argument for limiting international trade: The national security argument suggests that national security requires that strategically important goods be produced domestically. The infant industry argument suggests that protection can help infant industries develop. The unfair competition argument suggests that anti-dumping laws prevent unfair competition. The fair standards argument suggests that trade should not enable firms to skirt regulations. Determine which argument each statement is related to and whether the statement supports or opposes the argument. a. "Industries that are protected from foreign competition often never develop to a point where they can compete internationally." This statement opposes the infant industry argument. b. "If foreign importers do not meet U.S. requirements regarding child labor, safety, and the environment, they will have an unfair cost advantage over domestic firms." This statement supports the fair standards argument.
Jennifer S.
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