The goal of the Central America Free Trade Agreement is to : a. establish a free trade agreement between the United States and certain Latin American countries. b. eliminate all protectionism. c. create free trade agreements between the United States and other industrialized nations. d. raise prosperity levels in all industrializing nations.
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- Explain what world trade means. What is the role ofthe Wto and economic communities in encouragingfree trade? What is the role of the World Bank and theInternational Monetary Fund in global trade? What isprotectionism? Explain import quotas, embargoes, andtariffsince 1950, the volume of world trade and the volume of world real GDP A. have both increased, but the volume of world trade has increased more slowly than the volume of worl real GDP. B. have both increased at roughly the same rate. C. have both decreased at roughly the same rate. D. have both increased, but the volume of world trade has increased faster than the volume of world real GDP.Why does the government create trade barriers if they can potentially hurt a worker in an economy (due to lower wages)? a. What can be done to avoid trade barriers? b. As a consumer, what are your experiences with trade barriers? c. What alternatives do you recommend to replace trade barriers? Why do you think labor standards and working conditions are lower in developing nations of the world rather than in other countries? Should a country impose higher safety standards on imported goods that exist in the foreign country where the goods were produced? Explain.
- Each country should specialize in producing that good for which it a. has a comparative advantage b. has an absolute advantage c. it has a higher opportunity costThe goal of multilateral trade agreements is usually toa. equalize the level of tariffs across nations so nonation is disadvantaged relative to others.b. use targeted tariffs to ensure that nationsproduce those goods in which they have acomparative advantage.c. reduce tariffs in various nations simultaneously toblunt political pressure for protectionism.d. ensure that tariffs are used only to promote infantindustries that will eventually become viable.Which is a benefit of the Central American Free Trade Zone agreement? It allows all participants to create a region-wide health care system. It links regional power supplies between nations. O It minimizes border conflicts between countries. It creates a unified block to slow down outsourcing from the United States.
- What is meant by the concept of "trade creation"? a. Inefficient trade that follows the establishment of a free - trade area. b. Trade based on comparative advantage that typically follows the reduction of trade barriers. C. The opening up of new trading routes. d. Regional trade agreements. e. Increased exports and reduced imports as a result of a high-tariff policy.The two primary reasons to adopt measures to restrict trade are that a. they help keep real wages high in the importing country, and they also permit small businesses to compete in international markets. b. they may help the importing country improve its educational system, and they keep high-technology products from being stolen by foreign competitors. c. they may help the importing country get better prices for its goods, and they protect certain industries from foreign competition. d. they may help advance the political goals of the nation, and they encourage productivity in domestic industries.Most economists believe that tariffs area. a good way to promote domestic economicgrowth.b. a poor way to raise general economic well-being.c. an often necessary response to foreigncompetition.d. an efficient way for the government to raiserevenue.
- a. Discuss the advantages and disadvantages of free trade agreements for participating countries.free trade, whereas others are unhapppy, even angry, that the government has reduced regulations on imports of such products as textiles and furniture, causing factories to shut down and employees to lose their jobs. they feel that the U.S. government should legislate greate egulation of imported goods to give American companies an advantage or at least to lessen the advantage that companies in other countries receive from their government. What do you think? How do you justify your answer?Give typing answer with explanation and conclusion Which of the following was consequence of China joining the WTO? a. Competition from Chinese producers did not harm manufacturing jobs in the United States. b. Trade has brought Western ideas to China, leading to greater openness and political freedom. c. The Chinese economy has grown while on the whole U.S. companies have seen higher profits and U.S. consumers have seen lower prices. d. China has kept to the letter and spirit of WTO regulations and faced no official disputes.