Arizona State University - MGT 302

NEW TRADE THEORY

1)The Infant industry argument suggests that governments should protect new industries within their countries until that are competitively viable and was proposed by Alexander Hamilton in 1792

2. Evaluating the shared production of Apple’s i-phone shows that most of the production takes place in China.
3. Which of the following observations about subsidies is true?
4. Ping Zhou states “Automation, not offshoring, is really to blame, he says; in fact, of the 5.7 million manufacturing jobs lost in the US between 2000 and 2010, 87 percent of them were lost to automation”
5. The theory that best explains why Vietnam provides workers for Nike is:

6. The Product Life Cycle Theory states that luck, entrepreneurship and innovation leads to first mover advantages
7. Mercantilist doctrine advocates unrestricted free trade between countries.
8. One of the primary tenants of why free trade is beneficial is that international trade allows a country to specialize.
9. refers to a situation where a government does not attempt to influence through quotas or duties what its citizens can buy from another country.

10. The primary role of the International Monetary Fund is to maintain the international monetary system by controlling price inflation and imposing monetary discipline.
11. The primary role of the World Bank is the eradication of poverty.
12. Exchange rates are           under a free float system.
13. The crisis in Mexico is an example of a banking crisis.
14. The amount of a currency needed to purchase one ounce of gold was referred to as the .
15. Porter’s theory of national competitive advantage can be interpreted as justifying some limited government intervention to support the development of certain export-oriented industries
16. The simple model of free trade assumes away the transportation costs between countries.
17. Which of the following is a theory that can be used to justify limited government intervention support the development of certain export-oriented industries?
18. Which of the following statements is true of the Leontief paradox?
19. Identify the theory that argues that advanced nations have an incentive to develop a new offering and hence such nations always tend to create a good or service for the first time.
20. Which of the following is a statement that supports the theory of comparative advantage?
21. Country A exports jets from Country B although there are no underlying differences in factor endowments between the two countries. Which of the following theories explains this anomaly?
22. The WTO does not have the power impose trade sanctions.