Chapter 10 Trade in Developing Countries
? Multiple Choice Questions
1.
The infant industry argument was an important theoretical basis for (a) Neo-colonialist theory of international exploitation. (b) Import-substituting industrialization.
(c) Historiography of the industrial revolution in Western Europe. (d) East-Asian miracle. (e) None of the above. Answer: B 2.
Sophisticated theoretical arguments supporting import-substitution policies include (a) Terms of trade effects. (b) Scale economy arguments. (c) Learning curve considerations. (d) The problem of appropriability. (e) None of the above. Answer: D 3.
General equilibrium considerations lead to the realization that import-substituting policies have an effect of
(a) Discouraging exports. (b) Encouraging exports.
(c) Encouraging an efficient use of a country’s resources. (d) Generating large tariff revenues for the government (e) None of the above. Answer: A
Historically those few developing countries which have succeeded in significantly raising their per-capita income levels
(a) Did not accomplish this with import-substituting industrialization. (b) Did accomplish this with import-substituting industrialization. (c) Tended to provide heavy protection to domestic industrial sectors. (d) Favored industrial to agricultural or service sectors. (e) None of the above. Answer: A
4.
108 Krugman/Obstfeld ? Seventh Edition
5.
Statistical evidence suggests that
(a) Free trade policies promote economic growth more effectively than do import substitution
policies.
(b) Import substituting policies tend to promote effective exploitation of scale economies. (c) Import substitution tends to lead to relatively low effective rates of protection.
(d) Import substitution is to this day the preferred growth strategy promoted by the World Bank. (e) None of the above. Answer: A
The growth successes of the high performance Asian economies
(a) Supports the belief that economic development requires import substitution policies. (b) Rejects the belief that export-oriented industrialization is likely to promote economic
development.
(c) Rejects the belief that economic development requires import substitution policies. (d) Suggests that free trade policies are required for successful economic development. (e) None of the above. Answer: C
The high correlation between rapid growth in exports and rapid economic growth observed in several East Asia countries in recent decades proves that
(a) Export promoting trade policy leads to relatively rapid economic growth. (b) A free-trade orientation of trade policy results in rapid economic growth. (c) Exports help growth, whereas imports impede growth.
(d) Trade policy is perhaps the most important policy area for promotion of economic development. (e) None of the above. Answer: E
The relatively rapid economic growth experienced by Chile in the late 1980s (a) Supported the conventional Latin American reliance on import substitution. (b) Relied on the Harris-Todaro model to explain this growth.
(c) Rejected the conventional Latin American reliance on import substitution.
(d) Demonstrated the importance of market failure as a reason for import substitution. (e) None of the above. Answer: C
Which of the following could explain why the terms of trade of developing countries might deteriorate over time?
(a) Developing country exports consist mainly of manufactured goods (b) Developing country exports consist mainly of primary products.
(c) Commodity export prices are determined in highly competitive markets. (d) Commodity export prices are solely determined by developing countries. (e) None of the above. Answer: C
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Chapter 10 Trade in Developing Countries 109
10. Which trade strategy have developing countries used to restrict imports of manufactured goods so
that the domestic market is preserved for home producers, who thus can take over markets already established in the country?
(a) International commodity agreement. (b) Export promotion. (c) Multilateral contract. (d) Import substitution. (e) None of the above. Answer: D 11. To help developing countries expand their industrial base, some industrial countries have reduced
tariffs on designated manufactured imports from developing countries below the levels applied to imports from industrial countries. This policy is called (a) Export-led growth.
(b) Generalized system of preferences. (c) Most Favored Nation.
(d) Reciprocal trade agreement. (e) None of the above. Answer: B 12. Which industrialization policy used by developing countries places emphasis on the comparative
advantage principle as a guide to resource allocation? (a) Export promotion. (b) Import substitution.
(c) International commodity agreements. (d) Infant Industry promotion. (e) None of the above. Answer: A 13. Taiwan and South Korea are examples of developing nations that have recently pursued these
industrialization policies (a) Import substitution. (b) Export promotion. (c) Commercial dumping. (d) Multilateral contract. (e) None of the above.
Answer: B
14. To help developing nations strengthen their international competitiveness, many industrial nations
have granted tariff reductions to developing nations under the (a) International commodity agreements program. (b) Multilateral contract program.
(c) Generalized system of preferences program. (d) Export led growth program (e) None of the above. Answer: C
国际经济学作业答案第十章.doc
