Macroeconomics MyEconLab Ch.15.4 Study Plan Quiz
What is offshore outsourcing? Who benefits from it and who loses? Offshore outsourcing occurs when a firm in the United States _______. When a firm implements offshore outsourcing, consumers in the United States and workers in the foreign country in the industry that is being outsourced _______, and workers in the United States in the industry that is being outsourced _______
buys finished goods, components, or services from other firms in other countries gain; lose
Can protection save jobs and the environment and prevent workers in developing countries from being exploited? Protection _______.
does not save jobs and the environment and does not prevent workers in developing countries from being exploited
Do the winners from free trade win the political argument? Why or Why not. The winners from free trade ______ win the political argument because ______.
do not; the number of winners from free trade are large but the gain per person is too small to make the cost of political activity worth bearing
What are the infant industry and dumping arguments for protection? Are they correct? The infant-industry argument for protection is that ______. Dumping occurs when ______. The infant-industry and the dumping arguments for protection are _______.
it is necessary to protect a new industry to enable it to grow into a mature industry that can compete in world markets a foreign firm sells its exports at a lower price than its cost of production incorrect because free trade promotes prosperity for all countries and protection is inefficient.
The main reasons for imposing a tariff are _______.
tariff revenue and rent seeking
Which of the following activity is an example of dumping? Offshore outsourcing is _____ goods, components, or services _____ that brings gains from trade identical to those of any other type of trade. What is rent seeking? Rent seeking _____.
Dell exports PCs to India at a price 20 percent lower than the cost of producing them. buying; from firms in other countries is lobbying and other political activity that aims to capture the gains from trade
China Drug Sales to the U.S. Grow Despite Safety Concerns at Home Chinese exports of pharmaceutical products and health supplements worldwide jumped 3 percent to $56 billion last year. Chinese pharma exports to the U.S. rose 4 percent. Questions are being asked in China about the safety of its medicines. Source: Bloomberg News, August 30, 2016 What does the news clip imply about the comparative advantage of producing pharmaceuticals in the United States and China? Could product quality be a valid argument against free trade? If it could, explain how. The news clips implies that ______ a comparative advantage in producing pharmaceuticals. Product quality ______ a valid argument against free trade. The product-quality argument against free trade ______
China has is not; can be used by domestic pharmaceutical producers to create unnecessary fear among U.S. consumers and increase demand for domestically produced pharmaceuticals
