The opening up of free trade brings gains to:
Producers in import-competing industries
Producers in export industries
All producers.
Workers in import-competing industries
The answer is option b- Producers in export industries
The opening up of free trade brings gains to Producers in export industries
The opening up of free trade brings gains to: Producers in import-competing industries Producers...
Wages in import competing industries tend to: Question options: a. none of the answers listed are correct b. not to be affected with increased trade c. suffer with increased trade
when the residence of a nation are free to trade with foreigners, domestic producers will be able to a. export more goods for which they are a high cost supplier b. supply a larger quantity of goods they can produce at a relatively low-cost c. charge higher prices than would otherwise be the case d. survive in the market place even if they do not produce efficiently
The Stolper–Samuelson theorem indicates that, after a country shifts to free trade: 1- the real return to all the resources in an economy will increase. 2- the real return to the factor used intensively in the export industry will fall in the long run. 3- the real return to the factor used intensively in the export industry will rise in the long run. 4- the real return to the factor used intensively in the import-competing industry will rise in the...
Suppose a small country producing cars (C) and food (F) is closed to free trade. Its production possibilities frontier (PPF) reflects increasing costs (it’s bowed out). Finally, preferences in this country are such that consumers like both goods equally: U(DC , DF ) = D 1 2 CD 1 2 F . (a) Using graphs, show the autarky equilibrium in this country. Show both (i) a graph of the PPF and indifference curve, and (ii) a graph of relative demand...
TF 1. Among the winners with free trade are consumers of imports. TF 2. Among the losers with free trade are import competing firms including owners and workers. TF 3. If the $/euro exchange rate rises, then so does the value of the dollar. TF 4. The winners with free trade gain more than the losers lose.
51. The Stolper-Samuelson theorem suggests that, when a country is opened to international trade, the real income of the country's abundant factor of production will and the real income of the country's scarce factor of production a. rise; also will rise b. rise; wil fall c. fall; will rise d. fall; also will fall 52 In the "specific-factors" model where capital in each sector is fixed but labor can move freely between the two sectors, the opening of the country...
Which of the following trade policy moves is the most certain to bring gains to the world as a whole a. Imposing a countervailing duty against an existing foreign export subsidy b. Forming a customs union in place of a set tarrifs equally applied to imports from all countries c. Levying an antidumping import tarrif?
Consider what happens in Bristol as it transitions from no trade in wheat to trade in wheat. (a) What happens to the price of wheat in Bristol? (b) What happens to the domestic quantity of wheat purchased? (c) What happens to the domestic quantity of wheat produced? (d) Does Bristol export or import wheat? (e) What group (producers or consumers) gains from the transition? (f) What group (producers or consumers) loses from the transition? (g) What group (producers or consumers)...
Economists believe that there are many nonmonetary gains from further trade opening. Which of the following is NOT one of those potential gains? a. Governments will be less reliant on tariff revenue. b. Intensified competition lowers prices. c.Economies of scale from increased production decreases costs. d. Diversification of production lowers risks
Trade benefits A. the factor that is specific to the export sector of each country. B. all factors in the economy. C. the factor that is specific to the import −competing sectors. D. mobile factors