Quiz 9: Formulation of National Trade Policies

Fair trade is sometimes called ________.

The government of Country X actively manages the national economy by providing subsidies to aerospace firms and automobile manufacturers. Country X most likely engages in ________.

Which country listed below followed industrial policy to achieve economic success?

What Japanese organization is entrusted with setting industrial policy?

For which industry did Alexander Hamilton propose the infant industry argument?

Free trade ________.

Which theory specifically addresses the needs of individual industries?

The government of Country X is encouraging the growth of domestic manufacturing by implementing high barriers to imported goods. Country X is most likely following a strategy of ________.

Free trade implies that government exerts minimal influence on the exporting and importing decisions of private firms and individuals.

________ implies that the national government exerts minimal influence on the exporting and importing decisions of private firms and individuals.

The "level playing field" argument is primarily used to justify government policies that ________.

The ________ holds that a country must be self-sufficient in critical raw materials, machinery, and technology or it will be vulnerable to foreign threats.

Which country has been particularly successful at nurturing domestic industries through government intervention?

The ________ proposes that tariffs be imposed on imported manufactured goods to give U.S. firms temporary protection from foreign competition until they can fully establish themselves.

For five years, Harley-Davidson received tariff protection from Japanese imports to allow the motorcycle firm the opportunity to improve its operations and gain market share. This is an example of the ________.

Which theory best applies to those industries capable of supporting only a few firms worldwide?

Managed trade suggests that the national government should actively intervene to ensure that domestic firms' exports receive an equitable share of foreign markets and that imports are controlled to minimize losses of domestic jobs and market share in specific industries

________ suggests that a national government can make its country better off if it adopts trade policies that improve the competitiveness of its domestic firms in oligopolistic industries.

Strategic trade theory applies best to which industry identified below?

________ suggests that a country should encourage firms to compete in foreign markets by harnessing some advantage the country possesses.