Question

By implementing the right policy measures, countries that open to free international trade can always avoid...

By implementing the right policy measures, countries that open to free international trade can always avoid the production structural changes that free trade generates.

Clearly indicate if the statement is true or false and briefly explain your answer

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

The statement is false. No trade policy can gurantee that the structural change will definitely be preserved. While it is true that cetain level of structure can be maintained by incentivizing or penalizing or other policy changes, but it does not gurantee such structure. For example, Qatar is a small nation on desert. Production cost of agriculture is huge. So, without free trade, they have to be self-sufficient and have to produce crops, but with free trade, the cost of agriculture will be far lower by importing, thus the structure of the economy or sector will change even with policy intervention by incentivizing farmers.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Consider two countries, Home and Foreign, engaged in free international trade. Each country produces two products,...
Consider two countries, Home and Foreign, engaged in free international trade. Each country produces two products, A and B, using Capital (K) and Labour (L). Capital and Labour are mobile between sectors, but are immobile internationally. Home exports product A, which is relatively capital intensive in production. Home experiences growth in the form of an increase in its capital stock. The following questions ask you to explain various consequences of this growth. In doing so, you must provide your detailed...
Consider two countries, Home and Foreign, engaged in free international trade. Each country produces two products,...
Consider two countries, Home and Foreign, engaged in free international trade. Each country produces two products, A and B, using Capital (K) and Labour (L). Capital and Labour are mobile between sectors, but are immobile internationally. Home exports product A, which is relatively capital intensive in production. Home experiences growth in the form of an increase in its capital stock. The following questions ask you to explain various consequences of this growth. In doing so, you must provide your detailed...
Suppose that the United States is currently open to trade and does not impose any trade...
Suppose that the United States is currently open to trade and does not impose any trade restrictions on imports or exports. It is known that the world price for soybeans is above the market clearing price that would exist domestically in the United States in the absence of trade, and that the world price of washing machines is below the market clearing price that would exist domestically in the United States in the absence of trade. Dena has just been...
True/false/ambiguous. For each of the following, indicate whether the statement is true, false, or ambiguous, and...
True/false/ambiguous. For each of the following, indicate whether the statement is true, false, or ambiguous, and briefly explain your answer. If your answer depends on any assumptions, state them clearly. Use graphs or equations to illustrate your answer whenever it is helpful. 1. A worker should never trust an implicit contract with an employer that pays them less than their marginal product when they first join the firm, but more than their marginal product after many years with the firm,...
1) If the Federal Reserve conducts an open market purchase, we can expect that the short-run...
1) If the Federal Reserve conducts an open market purchase, we can expect that the short-run Phillips curve will shift left. the short-run Phillips curve will shift right. t here will be a movement to the right along the short-run Phillips curve. there will be a movement to the left along the short-run Phillips curve. the long-run Phillips curve will shift right. 2) In the long run, the Phillips Curve shows that the natural rate of unemployment is independent of...
If the overall balance in the balance of payments account is in _____, there can be...
If the overall balance in the balance of payments account is in _____, there can be an accumulation of official reserve assets by the country or a decrease in foreign official reserve holdings of the country's assets. surplus deficit equilibrium remission Answer: The current account balance does NOT equal: the difference between domestic product and domestic expenditure. the difference between national saving and domestic investment. net foreign investment. the difference between government saving and government investment. Answer: A nation is...
Chapter 5 Import Protection Policy: Import Tariffs I. Chapter Overview 1. Types of import tariffs in...
Chapter 5 Import Protection Policy: Import Tariffs I. Chapter Overview 1. Types of import tariffs in terms of the means of collection in terms of the different tariff rates applied in terms of special purposes for collection 2. The effects of import tariffs concepts of consumers surplus and producers surplus the welfare effects of import tariffs 3. Measurement of import tariffs the "height" of import tariffs nominal versus effective tariff rates II. Chapter Summary 1. The means of collecting import...
Closed book and closed notes. 3. Basic Calculators are permitted. 4. Read all instructions and questions...
Closed book and closed notes. 3. Basic Calculators are permitted. 4. Read all instructions and questions carefully. 5. Show all your work. 6. Please place your Coquitlam College Identification Card face up and visible on your desk. 7. Electronic devices including cellular phones must be turned off and put away during the exam. 8. Any student who has a cell phone or other unauthorized electronic device (i.e. laptop, and et cetera.) on their person or around their desk during this...
1.) True or False? For all societies, resources are scarce, and technology is limited, while people’s...
1.) True or False? For all societies, resources are scarce, and technology is limited, while people’s wants and needs for goods and services seem to be unlimited. (2 points) 2.) (1 point) Adam Smith’s “invisible hand” refers to a.) the subtle and often hidden methods that businesses use to profit at consumers’ expense. b.) the ability of free markets to reach desirable outcomes, despite the self-interest of market participants. c.) the ability of government regulations to benefit consumers, even if...
2. A demand curve indicate a. the maximum willingness to pay for a given quantity b.the...
2. A demand curve indicate a. the maximum willingness to pay for a given quantity b.the consumer's gain from exchange c.the market price of a good or service d. the equilibrum quantity 3. trade permitts countries to a. consume more than they capable of producing b.produce based on their comparative advantage c.specialize more fully d.all of above 4. which of the following dose not impact how elastic supply is? a. whether the supply is local or global b.the share of...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT