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trade policies for the developing nations MCQs

Practise focused trade policies for the developing nations questions with marked answers for exam preparation and subject revision.

trade policies for the developing nations Mcqs
1. Hong Kong and South Korea are examples of developing nations that have recently pursued ________ industrialization policies?
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A. commercial dumping

B. import substitution

C. multilateral contract

D. export promotion
2. Concerning the hypothesis that there has occurred a long run deterioration in the developing countries terms of trade empirical studies provide ?
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A. overwhelming support for the deterioration hypothesis

B. mixed evidence that does not substantiate the deterioration hypothesis

C. overwhelming opposition to the deterioration hypothesis

D. None of the above

3. Tariff levels in advanced countries tend to be __________ tariff levels in developing countries?
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A. lower than

B. there is no general pattern

C. higher than

D. equal to

4. In the Px = export price index, Pm = import price index, Qx = export quantity index,and Qm = import quantity index. Developing countries tend to maintain that their commodity term of trade have declined over the long run suggesting that _________ has declined?
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A. Pm/Px

B. (Pm/Px)Qm

C. Px/Pm

D. (Px/Pm)Qx

5. Developing countries that emphasize the production of raw materials or agricultural goods may realize a long-run deterioration in the international terms of trade because of ?
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A. relatively low import tariffs maintained by advanced countries

B. highly elastic demand for these products in advanced countries

C. sluggish demand for these products in advanced countries

D. declines in the supplies of these products on world markets

6. Which of the following organizations primarily provides long-term loans to developing countries to help them develop their infrastructure such as schools hospitals and roads ?
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A. World Bank

B. Council on Foreign Relations

C. International Monetary Fund

D. Organization of petroleum Exporting Countries

7. Among the institutions and policies that have been created to support developing countries are?
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A. The Generalized System of Preferences

B. All of the above

C. the international Monetary Fund

D. the world Bank

8. Instead, assume that global economic expansion causes the quantity of tin demanded to increase by 4 million pounds at each price To maintain price of tin at the target price you would ?
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A. sell 8 million pounds of tin

B. sell 4 million pounds of tin

C. buy 8 million pounds of tin

D. buy 4 million pounds of tin

9. A widely used indicator to differentiate developed countries from developing countries is ?
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A. unemployment per capita

B. real income per capital

C. calories per capita

D. international trade per capita

10. Poor developing countries typically impose __________ tariffs than rich advanced nations on imports?
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A. lower

B. None of the above

C. about the same height

D. higher
11. To stabilize the prices of primary products international commodity agreements have utilized all of the following except ?
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A. buffer stocks

B. production and export controls

C. multilateral contracts

D. tariff-rate quotas applied to imported goods
12. Because supply and demand conditions for primary products are very price inelastic their prices ?
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A. tend to be very unstable from year to year

B. have been steadily rising in recent decades

C. have been more stable than the prices of manufactured goods

D. fluctuate about as much as the prices of manufactured goods

13. The Peoples Republic of China ?
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A. has always accounted for a significant share of international trade, given its very large population

B. has retained to the present time its strategy of import substitution as a source of economic growth

C. is the first of the East Asian countries to be recognized for a successful outward-oriented development strategy

D. has significantly increased its openness to international trade and foreign investment in recent decades
14. Developing countries that concentrate production in agricultural products or raw materials may face a long-run decline in their international terms of trade because of ?
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A. inelastic demand for these products in advanced countries

B. large increases in the supplies of these products on world markets because of export expansion policies

C. sluggish demand for these products in advanced countries

D. All of the above
15. To be considered a a good candidate for an export cartel, a commodity should ?
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A. be a primary product

B. have high price elasticity of supply

C. have a low price elasticity of demand

D. be a manufactured goods

16. Concerning tariff policy, the United States does not charge?
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A. lower tariff rates on goods from nations with normal trade relation status

B. identical tariff rates in products from all countries of the world

C. lower tariff rates on goods from nations with most favored nation status

D. low or zero tariffs on goods from certain developing countries

17. The ability of the Organization of Petroleum Exporting Countries (OPEC) to maximize profits is hampered by ?
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A. similar cost schedules for member countries

B. highly inelastic world demand curve for oil

C. economic recession for oil importing nations

D. a lack of substitutes for oil

18. Membership in the World Trade Organization for china ?
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A. has been opposed by a number of labor and human rights organizations in other countries

B. has been a matter of low priority for the Chinese government

C. was achieved in the early 1950s

D. has had negligible effect on trade between china and the United States

19. To help developing nations strengthen their international competitiveness many industrial nations have granted non-reciprocal tariff reductions to developing nations under the ?
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A. multilateral contract program

B. export-led growth program

C. international commodity agreements program

D. generalized system of preferences program
20. The Generalized System of Preferences (GSP) program allows ?
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A. any developing country to ignore the most-favored nation clause

B. any advanced country to ignore the most favored-nation clause

C. developing country export to advanced countries to receive preferential tariff treatment

D. developing country imports from advanced countries to receive preferential tariff treatment