MNGT 375 CH 7

A government should use subsidies to support promising firms that are active in newly emerging industries, according to:

strategic trade policy.

Which of the following is a major reason why many economists remain critical of the infant industry argument?

It makes the domestic industry inefficient.

Which of the following is the most common political argument for government intervention in international trade?

Protecting jobs and industries from unfair foreign competition

Which of the following best explains the reason for the rise in protectionist pressures around the world during the 1980s? A) The strict GATT bureaucracy in Geneva controlling trade regulations B)The opening up of international markets to cheap products from China C)The fall of the Soviet Union D)The persistent trade deficit in the world's largest economy, the United States E) The economic failure of Japan which hampered the global economy

The persistent trade deficit in the world's largest economy, the United States

Which of the following is a loophole in antidumping laws that is being exploited by many countries to pursue protectionism?

The rather vague definition of what constitutes "dumping"

The WTO was encouraged to extend its reach to encompass regulations governing foreign direct investment, something the GATT had never done. Two of the first industries targeted for this reform were: A) global telecommunication and financial services industries. B)scientific research and defense sector . C)pharmaceuticals and heavy metal industry. D)pharmaceuticals and biotechnology. scientific research and global telecommunication.

global telecommunication and financial services industries.