Question : 12.2   Globalization and Low-Wage Labor 1) In today’s world markets, poor : 1303558

 

12.2   Globalization and Low-Wage Labor

 

1) In today’s world markets, poor developing countries tend to rely primarily on exports of

A) agricultural products.

B) primary products.

C) mineral products.

D) manufactured products.

E) high-tech products.

 

 

2) In the second half of the 1990s a rapidly growing movement focused on the harm caused by international trade to

A) land owners in poor countries.

B) capital owners in rich industrialized countries.

C) land owners in rich industrialized countries.

D) production workers in both rich and poor countries.

E) terms of trade in developing countries.

 

 

3) The Ricardian model of comparative advantage lends support to the argument that

A) trade tends to worsen the conditions of unskilled labor in rich countries.

B) trade tends to worsen the conditions of owners of capital in rich countries.

C) trade tends to worsen the conditions of workers in poor countries.

D) trade tends to worsen the conditions of workers in rich countries.

E) trade is mutually beneficial to the countries that engage in it.

 

 

4) Most developing countries oppose including labor standards in trade agreements because

A) they believe this would involve a loss of their national sovereignty.

B) they believe this would limit their ability to export to rich markets.

C) they believe this would create an uneven playing field.

D) multinational corporations control them.

E) they do not want to improve wages for their workers.

 

5) When Japan’s MITI (Ministry of International Trade and Industry) focused resources on the semiconductor industry, and in particular on Random Access Memory (RAM), it was viewed as a typically successful Japanese foray into a new dynamic strategic sector. The results, as viewed by the late 1990s

A) justified this view.

B) led to similar structuring of industrial policy in the U.S.

C) lent support to the Brander-Spencer model.

D) helped shift the focus of economists away from Japanese-style industrial policy.

E) propelled Japan into the leading country in high-tech manufacturing.

 

 

6) Low wages and poor working conditions in many U.S. trade partners

A) prove that the gains-from-trade arguments of the Ricardian model are false.

B) may be a fact of life, but economists don’t care.

C) are facts emphasized by U.S. labor in its contract negotiations.

D) prove that the gains-from-trade arguments of the Ricardian model are true.

E) prove that international trade is exploitative.

 

 

7) The fact that articles of clothing sold in Walmart are produced by very poorly paid workers in Honduras, is a fact that if taken into account

A) would prove to economists that the Ricardian model of comparative advantage is false.

B) would prove to economists that the equal-value in trade concept summed up in the trade triangles is incorrect.

C) proves to economists that trade is a negative sum game.

D) proves to the Anti-Globalization Movement that trade is a negative sum game.

E) proves that corporations are exempt from labor standards.

 

 

8) Faced with the evidence of poor working conditions and low wages in the border maquiladoras, economists

A) shrug their shoulders and ignore the issue.

B) agree that trade theory is thus proven hollow and internally inconsistent.

C) argue that U.S. consumers should not consume lettuce.

D) argue that the poor conditions and low wages are actually improvements for the Mexican workers, and may be cited as gains-from-trade.

E) argue that Mexico’s generally high overall productivity offsets these conditions.

 

9) The shipbreakers of Alang are

A) a metaphysical representation of the WTO, deriving from Edgar Rice Burroughs’ Princess of Mars.

B) an early version of the Russian Ice-breaker of the Dnieper-Alang class.

C) a capital-intensive industry.

D) competing with pollution-producing industries in countries outside of India.

E) doing environmentally conscious work.

 

 

10) The Shipbreakers of Alang utilize much labor and little capital, thereby supporting the applicability of the

A) factor proportions explanation of the sources of comparative advantage.

B) specific factor theory of comparative advantage.

C) monopolistic competition theory of comparative advantage.

D) scale economies theory of comparative advantage.

E) basis of the non-dumping legislation.

 

 

 

11) The Shipbreakers of Alang arouse the ire of Greenpeace because of

A) India’s non-repentant nuclear stance.

B) India’s import-competing industrialization policies.

C) the difficulty of avoiding ship accidents between Greenpeace’s sailboat and the reconstructed Container ships of Alang.

D) the large amount of pollution associated with the operations at Alang.

E) their competition with capital-intensive industries.

 

 

12) The Shipbreakers of Alang represent a perfect example of how a developing country can apply the principles of the Heckscher-Ohlin model, since

A) shipbreaking is generally considered to be a capital-intensive operation and India, being a large country has much capital.

B) shipbreaking is a labor-intensive operation in India, and India has many workers since it is such a large country.

C) shipbreaking is a labor-intensive operation in India, and India’s availability of capital per worker is less than that of its trade partners.

D) shipbreaking is a capital-intensive operation elsewhere in the world, and therefore represents a case of a factor intensity reversal.

E) India’s climate lends itself to the work involved in shipbreaking.

 

13) When one applies the Heckscher-Ohlin model of trade to the issue of trade-related income redistributions, one must conclude that North South trade, such as U.S.-Mexico trade,

A) must help low skill workers on both sides of the border.

B) is likely to hurt high-skilled workers in the U.S.

C) is likely to involve higher overall national economic gains that will be greater than any harm done to low-skilled workers in the U.S.

D) is likely to hurt low-skilled workers in Mexico.

E) gives no advantage to the workers in either country.

 

 

14) Working conditions for clothing workers in Bangladesh are very poor. If countries refuse to buy clothing from Bangladesh in order to encourage change, the effect is likely to be that

A) firms will be forced to comply and workers will be better off.

B) firms will refuse to comply, but workers will be better off.

C) firms will try to comply and workers will be worse off.

D) firms will try to comply and workers will be better off.

E) regardless of how firms respond, workers will be better off.