POS 486 MIDTERM EXAM - Questions, Answers and Response Feedback

POS 486 MIDTERM Which of the following is NOT a policy that trade liberalization would seek to eliminate? Which of the following does NOT describe the WTO? The WTO relies on The majority of regional trade agreements The enforcement problem of trade agreements refers to the fact that If more trade is created than diverted, a regional trade agreement (RTA) The difference between a FTA and a Customs Union Consumption Indifference Curves In an autarkic country, the `production possibility frontier' Which of the following explains why coutnries that trade choose to produce goods that use a lot of their abundant factor? In developing countries, capital is considered a ________ factor. In a liberalized country with an abundance of labor and land but little capital, we would expect A sectoral model of trade assumes When labor protested NAFTA while the car manufacturers were pushing for its ratification, this was an example of A `specific factor' Refer to the following figure depicting trade liberalization as a Prisoner's Dilemma (a variant of Figure 3.5 on page 59). Which quadrant represents Australia's most preferred outcome in its negotiated trade agreement with the EU? (note: L = liberalize; P = protect) European Union Australia L,L L,P P,L P,P Once again, refer to the following figure depicting trade liberalization as a Prisoner's Dilemma (a variant of Figure 3.5 on page 59). Which quadrant represents the Nash equilibrium? European Union Australia L,L L,P P,L P,P If a trade agreement allows the company CompuGlobalHyperMegaNet to access a million more customers, thereby bringing down its cost of production per unit, it is taking advantage of which of the following? In a factor-based model of trade, if a developed country begins producing more computer software and fewer tableclothes, who benefits? Looking at the following payoff matrix of a hypothetical market that supports only one high-tech computer firm with two countries competing internationally, answer the following: Which country is providing subsidies for production? UK Computer Firm Produce Not Produce US Computer Firm Produce -6.5, 6.5 100, 0 Not Produce 0, 113 0, 0 Looking at the following payoff matrix of a hypothetical market that supports only one high-tech computer firm with two countries competing internationally, answer the following: Which country would you deduce had the first-mover advantage? UK Computer Firm Produce Not Produce US Computer Firm Produce -6.5, 6.5 100, 0 Not Produce 0, 113 0, 0 Looking at the following payoff matrix of a hypothetical market that supports only one high-tech computer firm with two countries competing internationally, answer the following: What is the expected effect of the subsidizing country’s entry in the market on the non-subsidizing country’s firm? UK Computer Firm Produce Not Produce US Computer Firm Produce -6.5, 6.5 100, 0 Not Produce 0, 113 0, 0 Which of the following was NOT a benefit of creating the WTO? Government policies used to implement ISI included ALL of the following except The Structuralists believe Structuralists argue that The WTO's Dispute Settlement Mechanism As discussed in the article "Trump's New Nafta Pact...", vested U.S. interests influenced Trump and his administration Structural Adjustment Programs Primary ISI was thought to be “easy” because of ALL of the following EXCEPT Which of the following helps to explain the political shift to ISI in Brazil? Infant Industry Protection is argued The logic of infant industry protection was first developed to The E. Asian Tigers Neoliberal economic reforms Which of the following is NOT considered an element of the Washington Consensus? If Nokian Tyres, a Finnish company, sets up shop in Indonesia to take advantage of teh country's wealth of natural rubber, this is an example of As Drezner highlights, the benefits of trade are diffuse As detailed in the article "TPP: What is it and why does it matter?", one of the motivations for US involvement in the TPP during the Obama administration As per the press release by Japan Tobacco Inc. on the acquisition of Natural American Spirit: The existing operations of the acquired companies will be expected to remain unchanged in order to fully benefit from their extensive knowledge and experience. This decision is based on