Under Special 301, what is the U.S. government required to do?
What will be an ideal response?
Question 2 - Based on Table 3.1, which country or countries has an absolute advantage and a comparative advantage in shoes?
A) Mexico has an absolute and comparative advantage in shoes.
B) The United States has an absolute and comparative advantage in shoes.
C) The United States has a comparative advantage, and Mexico has an absolute advantage in shoes.
D) Mexico has a comparative advantage, and the United States has an absolute advantage in shoes.
E) There is not enough information to tell.
Question 3 - Use national demand and supply curves to show (a) the incentives for trade to begin between nations. (b) the effect on the likely pattern of trade of a change in technology in A that causes A's national supply curve to shift out.
(c) the effect on the likely pattern of trade of a change in tastes in B in favor of good S.
Question 4 - In leading the opposition to the adoption of NAFTA, H. Ross Perot argued that NAFTA would lead to
A) a loss of U.S. competitiveness with Canada.
B) a loss of U.S. manufacturing jobs to Mexico.
C) a loss of U.S. willingness to negotiate the Uruguay Round.
D) All of the above.
Question 5 - Suppose that a small country experiences growth strongly biased toward its export, cloth
A) this will have no effect on terms of trade for the country's trading partner.
B) this will tend to worsen the country's terms of trade.
C) this will tend to improve the country's terms of trade.
D) this will tend to worsen terms of trade for the country's trading partner.
E) this will tend to improve terms of trade for the country's trading partner.
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