國際經(jīng)濟(jì)學(xué)作業(yè)任務(wù)答案解析-第十章

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Chapter10TradeinDevelopingCountries

■MultipleChoiceQuestions

Theinfantindustryargumentwasanimportanttheoreticalbasisfor

Neo-colonialisttheoryofinternationalexploitation.

Import-substitutingindustrialization.

HistoriographyoftheindustrialrevolutioninWesternEurope.

East-Asianmiracle.

Noneoftheabove.

Answer:B

Sophisticatedtheoreticalargumentssupportingimport-substitutionpoliciesinclude

Termsoftradeeffects.

Scaleeconomyarguments.

Learningcurveconsiderations.

Theproblemofappropriability.

Noneoftheabove.

Answer:D

Generalequilibriumconsiderationsleadtotherealizationthatimport-substitutingpolicieshaveaneffectof

Discouragingexports.

Encouragingexports.

Encouraginganefficientuseofacountry’sresources.

Generatinglargetariffrevenuesforthegovernment

Noneoftheabove.

Answer:A

Historicallythosefewdevelopingcountrieswhichhavesucceededinsignificantlyraisingtheir

per-capitaincomelevels

Didnotaccomplishthiswithimport-substitutingindustrialization.

Didaccomplishthiswithimport-substitutingindustrialization.

Tendedtoprovideheavyprotectiontodomesticindustrialsectors.

Favoredindustrialtoagriculturalorservicesectors.

Noneoftheabove.

Answer:A

Statisticalevidencesuggeststhat

Freetradepoliciespromoteeconomicgrowthmoreeffectivelythandoimportsubstitutionpolicies.

Importsubstitutingpoliciestendtopromoteeffectiveexploitationofscaleeconomies.

Importsubstitutiontendstoleadtorelativelyloweffectiveratesofprotection.

ImportsubstitutionistothisdaythepreferredgrowthstrategypromotedbytheWorldBank.

Noneoftheabove.

Answer:A

ThegrowthsuccessesofthehighperformanceAsianeconomies

Supportsthebeliefthateconomicdevelopmentrequiresimportsubstitutionpolicies.

Rejectsthebeliefthatexport-orientedindustrializationislikelytopromoteeconomicdevelopment.

Rejectsthebeliefthateconomicdevelopmentrequiresimportsubstitutionpolicies.

Suggeststhatfreetradepoliciesarerequiredforsuccessfuleconomicdevelopment.

Noneoftheabove.

Answer:C

ThehighcorrelationbetweenrapidgrowthinexportsandrapideconomicgrowthobservedinseveralEastAsiacountriesinrecentdecadesprovesthat

Exportpromotingtradepolicyleadstorelativelyrapideconomicgrowth.

Afree-tradeorientationoftradepolicyresultsinrapideconomicgrowth.

Exportshelpgrowth,whereasimportsimpedegrowth.

Tradepolicyisperhapsthemostimportantpolicyareaforpromotionofeconomicdevelopment.

Noneoftheabove.

Answer:E

TherelativelyrapideconomicgrowthexperiencedbyChileinthelate1980s

SupportedtheconventionalLatinAmericanrelianceonimportsubstitution.

ReliedontheHarris-Todaromodeltoexplainthisgrowth.

RejectedtheconventionalLatinAmericanrelianceonimportsubstitution.

Demonstratedtheimportanceofmarketfailureasareasonforimportsubstitution.

Noneoftheabove.

Answer:C

Whichofthefollowingcouldexplainwhythetermsoftradeofdevelopingcountriesmightdeteriorateovertime?

Developingcountryexportsconsistmainlyofmanufacturedgoods

Developingcountryexportsconsistmainlyofprimaryproducts.

Commodityexportpricesaredeterminedinhighlycompetitivemarkets.

Commodityexportpricesaresolelydeterminedbydevelopingcountries.

Noneoftheabove.

Answer:C

Whichtradestrategyhavedevelopingcountriesusedtorestrictimportsofmanufacturedgoodssothatthedomesticmarketispreservedforhomeproducers,whothuscantakeovermarketsalreadyestablishedinthecountry?

Internationalcommodityagreement.

Exportpromotion.

Multilateralcontract.

Importsubstitution.

Noneoftheabove.

Answer:D

Tohelpdevelopingcountriesexpandtheirindustrialbase,someindustrialcountrieshavereducedtariffsondesignatedmanufacturedimportsfromdevelopingcountriesbelowthelevelsappliedtoimportsfromindustrialcountries.Thispolicyiscalled

Export-ledgrowth.

Generalizedsystemofpreferences.

MostFavoredNation.

Reciprocaltradeagreement.

Noneoftheabove.

Answer:B

Whichindustrializationpolicyusedbydevelopingcountriesplacesemphasisonthecomparativeadvantageprincipleasaguidetoresourceallocation?

Exportpromotion.

Importsubstitution.

Internationalcommodityagreements.

InfantIndustrypromotion.

Noneoftheabove.

Answer:A

TaiwanandSouthKoreaareexamplesofdevelopingnationsthathaverecentlypursuedtheseindustrializationpolicies

Importsubstitution.

Exportpromotion.

Commercialdumping.

Multilateralcontract.

Noneoftheabove.

Answer:B

Tohelpdevelopingnationsstrengthentheirinternationalcompetitiveness,manyindustrialnationshavegrantedtariffreductionstodevelopingnationsunderthe(a)Internationalcommodityagreementsprogram.

Multilateralcontractprogram.

Generalizedsystemofpreferencesprogram.

Exportledgrowthprogram

Noneoftheabove.

Answer:C

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Answer:D

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Answer:C

Areasonwhyitisdifficultfordevelopingcountriestomaintainacartelisthat

Theelasticityofdemandforacartel’soutputdecreasesovertime.

Producersinthecartelhaveaneconomicincentivetocheat.

Economicprofitsdiscourageotherproducersfromenteringtheindustry.

Producersinthecartelhavethemotivationtolowerpricesbutnottoraiseprices.

Noneoftheabove.

Answer:B

Importsubstitutionpoliciesmakeuseof

Tariffsthatdiscouragegoodsfromenteringacountry.

Quotasappliedtogoodsthatareshippedabroad.

Productionsubsidiesgrantedtoindustrieswithcomparativeadvantage.

Taxbreaksgrantedtoindustrieswithcomparativeadvantage.

Noneoftheabove.

Answer:A

Export-ledgrowthtendsto

Discouragecompetitionintheglobaleconomy.

Exploitdomesticcomparativeadvantages.

Leadtounemploymentamongdomesticworkers.

Helpfirmsbenefitfromdiseconomiesoflarge-scaleproduction.

Noneoftheabove.

Answer:B

Allthefollowingnationsexcept haverecentlyutilizedexport-ledgrowth

policies.

HongKong

SouthKorea

Argentina

Singapore

Noneoftheabove.

ThedevelopmentofcountrieslikeSouthKoreahasbeensupportedbyallofthe

followingexcept.

Highdomesticinterestrates.

Highdomesticsavingrates.

Largeendowmentsofhumancapital.

Highlevelsoflaborproductivity.

Noneoftheabove.

Answer:A

Formostdevelopingcountries

Productivityishighamongdomesticworkers.

Populationgrowthandilliteracyratesarelow

Savingandinvestmentlevelsarehigh

Agriculturalgoodsandrawmaterialsconstituteahighproportionofdomesticoutput.

Noneoftheabove.

Answer:D

In2003,theper-capitaincomeinChinawasroughly ofthatintheU.S.

onehundredth

Oneeighth

Onehalf

Thesameas

Noneoftheabove.

Answer:B

The“EastAsianMiracle”is

Theabilityofsomanypeopletoliveinsuchsmallareas.

ThefactthatsomanyInfluenzavarietiesoriginatefromthisregion.

Thefactthatpoordualisticeconomiesmanagedtoescapetheviciouscircleofpoverty.

TheabilitytomaintainlargepositivetradebalanceswiththeU.S.

Noneoftheabove.

Answer:C

Theinfantindustryargumentisthat

Comparativeadvantageisirrelevanttoeconomicgrowth

Developingcountrieshaveacomparativeadvantageinagriculturalgoods.

Developingcountrieshaveacomparativeadvantageinmanufacturing.

Developingcountrieshaveapotentialcomparativeadvantageinmanufacturing.

Noneoftheabove.

Theinfantindustryargumentcallsforactivegovernmentinvolvement

Onlyifthegovernmentforecastsareaccurate.

Onlyifsomemarketfailurecanbeidentified.

Onlyiftheindustryisnotonealreadydominatedbyindustrialcountries.

Onlyiftheindustryhasahighvalueadded.

Noneoftheabove.

Answer:B

Theimperfectcapitalmarketjustificationforinfantindustrypromotion

Assumesthatnewindustrieswilltendtohavelowprofits.

Assumesthatinfantindustrieswillsoonmature.

Assumesthatinfantindustrieswillbeinproductsofcomparativeadvantage.

Assumesthatbankscanallocateresourcesefficiently.

Noneoftheabove.

Answer:A

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Brazil’sexportrecordin1999illustratedtheprinciplethat

Alargecountrywilltendtohavefewexports.

Asmallcountrywilltendtohaveahighexportratio.

Protectionistpoliciestendtodiscourageexports.

Export-promotingpoliciesdonottendtowork.

Noneoftheabove.

Answer:C

Thedisappointmentwithimport-substitutionpoliciesisinpartbecause

TherapidandcontinuousgrowthrecordofSouthAmericancountries.

Manycountriespursuingthisstrategyexperiencedstagnationintheirgrowth.

Thispolicyisinconsistentwithsophisticatedeconomicgrowthmodels.

Thispolicytendedtocreateworld-classindustrialcompetitors.

Noneoftheabove.

Answer:B

Importsubstitutionpolicieshaveovertimetendedtoinvolveallbutthefollowing

Overlappingimportquotas.

Exchangecontrols.

Domesticcontentrules.

Simpletariffs.

Multipleexchangerateschemes.

Answer:D

Anefficienteconomywouldsetthemarginalproductinthetraditionalsector

Lowerthanthatinthemodernnon-traditionalsector.

Higherthanthatinthemodernsophisticatedsector.

Equaltothatinthemodernsophisticatedsector.

Lowerintherelativelycapitalintensivesector.

Higherintherelativelycapitalintensivesector.

Answer:C

TheHPAE(HighPerformanceAsianEconomies)countries

Haveallconsistentlysupportedfreetradepolicies.

Haveallconsistentlymaintainedimport-substitutionpolicies.

Haveallconsistentlymaintainednon-biasedefficientfreecapitalmarkets.

Haveallmaintainedopennesstointernationaltrade.

Noneoftheabove.

Answer:D

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Answer:B

TheexperienceofSub-SaharaAfrica,ascomparedtothatof“OtherAsia”(notincludingtheHPAEs)supportstheargumentthat

Highratesofprotectiontendtoharmeconomicgrowth

Thepooreristhecountrytheeasieritisforitto“catchup”economically

Lowratesofprotectiontendtopromoteeconomicgrowth

Both(a)and(c)

Noneoftheabove

Answer:E

TheremarkablesuccessoftheHPAEsprovesthat

tradepolicyisthekeytosuccessfuleconomicgrowth

tradepolicyisirrelevanttosuccessfuleconomicgrowth

higheducationalstandardsisthekeytosuccessfuleconomicgrowth

dualeconomiesmustsuffereconomicstagnation

Noneoftheabove

Answer:E

TheHPAE“economicmiracle”illustratesaclearcaseinwhich

exportsandgrowthwerepositivelyrelated

exportswerepromotedbysuccessfuleconomicgrowth

economicgrowthwasdeterminedbysuccessfulexportpromotion

tradepolicydominatedotherconsiderationsinpromotingeconomicgrowth

Noneoftheabove

Answer:A

The“EastAsianMiracle”ofthe“FourTigers”inthe1960swasreplicatedby

developingcountriesaroundtheworld

otherEastAsiancountries

SubSaharaAfricancountries

Industrializedcountries

Noneoftheabove

TheexperienceofChile’sforeignsectorinthelasttwodecadesofthe20thCenturysupportsthepropositionthateconomicgrowthissupportedby

Importsubstitution

Industrializationpolicies

Tradeliberalizationpolicies

Both(a)and(b)above

Noneoftheabove

Answer:C

China’srecentexperiencesupportsthepropositionthat

“Economicmiracles”aresolelytobeexpectedinsmallcountries

Centralplanningandsocialismcanpromotesustainedeconomicgrowth

Alesseningofincomedisparitiesisaprerequisiteforeconomicgrowth

Growthinalargecountrycannotbeaffectedbyitsforeignsector

Noneoftheabove

Answer:E

■EssayQuestions

Itisarguedthatimportsubstitutionisamisguidedtradepolicyiftheintentistopromotelong-termeconomicgrowth.Explainthereasonsunderlyingthisargument.

Answer:Importsubstitutionpromotesthateconomicactivityinwhichthecountryisrelativelyinefficient.Thislowerstherealincomeatanygiventimeanddecreasestheresourceswhichcanbeusedforinvestmentpurposes,hencelowergrowthrates.Anadditionalansweristhatimportsubstitutionbycreatingaprotecteddomesticmarketfailstoprovideincentivestoproducehigh,orworld-classquality—whichmeansthiscountry,cannotmarketinforeigncountries.Withsucha(perceived)limitedmarket,endogenouseconomicgrowthwillnotbeforthcoming.Finally,itmaybethatexposuretoworldcompetitionhasitsowndynamiceffectpromotingeconomicgrowth.

TheUnitedStates,asitbeganitslongandsuccessfulgrowthintheearly19thCentury,consciouslypromoteddomesticproductionthroughsuchactivitiesastariffs,Clay’sAmericanSystem,andmanydirectsubsidiestorailroads,canalcompanies,farmers(freeland)etc.Todayweviewthisblatantexampleoflargescaleandextensiveimport-substitutionindustrializationashavingbeenverysuccessful.Commentandrelatetoyouranswertoquestion1.

Answer:Thisisaninterestingpointandemphasizesthateconomicmodelstendtobea-historical.Thatis,theylackthehistoricperspective;andthusmaybemisleadingasguidestolongrunissues,suchaseconomicgrowth.Thisalsosuggeststhattradepolicyperseisalmostcertainlynotsufficienttoexplainwhysomecountriesgrowandothersdonot.

ClassicalandNeoclassicaltradetheorymakesthecasethatfreetradecanbringacountrytoanoptimumandeconomicallyefficientuseofitsresources;andhenceisanoptimaltrade-policy,iftheobjectiveismaximizinglongtermeconomicgrowth.TherearethosewhoarguethattheexperienceoftheAsianMiraclecountries,suchasTaiwan,SouthKoreaandSingaporeverifythisargumentintherealworld.Explain.Thereareotherswhoarguethattheexperienceofthesecountriescannotbeusedtoverifyorsupporttheargumentabove.Explain.

Answer:Bothargumentsmayindeedbemade.Thesecountriesdidinfacttendtopromoteexportsinaconsistentsetofpolicies.However,theytendedtodothisviaconsciousNationalindustrial-policy(e.g.,SouthKoreausing“theJapanesesystem”),andhence(withthepossibleexceptionofHongKong)donotprovideagoodtest-tubeforthelongruneffectsofafree-tradestance.

Theconsensustodayisthatimport—substitutionprotec