Question : 91.According to Krugman, which of the following best indicates the dangers : 1299313

91.According to Krugman, which of the following best indicates the dangers of a strategic trade policy? 

A. Decrease in subsidies

B. Decrease in protectionism

C. Occurrence of a trade war

D. Huge financial debts for the countries involved

E. Occurence of a global recession

92.According to Krugman, the ideal way for a country to respond, when the foreign competitors of its companies are already being supported by government subsidies, is probably not to engage in retaliatory action, but to:  

A. help establish rules that minimize the use of trade-distorting subsidies.

B. adopt the strategic trade policy as a way to establish domestic firms in a dominant position in the global industry.

C. provide subsidy to a new industry where the foreign competitors have not had the benefit of such strategic trade policies.

D. use a combination of home-market protection and export-promoting subsidies.

E. provide high level of subsidies to the oldest industry in the country.

93.Which of the following is an argument against embracing strategic trade policy?  

A. It hampers the chances of a country’s firms to effectively exploit the first-mover advantages.

B. It is certain to be captured by special-interest groups within the economy, which will distort it to their own ends.

C. It increases the prices of the products for the domestic consumers.

D. It hampers the abilities of the domestic firms to achieve a dominant position in the global industry.

E. It leads to a compromise in national sovereignty.

94.Which of the following historical events signifies the first official embracing of free trade as a government policy by a country?  

A. The Union of the Crowns in 1603

B. The repeal of the Corn Laws by the British Parliament in 1846

C. The Treaty of American Independence in 1783

D. The Industrial Revolution of the 18th and 19th centuries

E. The Glorious Revolution of 1688

95.Which of the following indicates the reason for the British Parliament repealing the Corn Laws in 1846?  

A. Opium wars that polarized world opinion against Great Britain

B. Harvest failure in Britain and the imminent threat of famine in Ireland

C. Imminent threat of rebellions in most of its colonies

D. Conservatives taking over the government from the Liberals

E. Rise of nationalism in Europe

96.Which of the following indicates the reason for Great Britain to push the case for trade liberalization for as long as 80 years in the 19th and early 20th century?  

A. Great Britain was starting to lose the military stranglehold over much of its colonies in early 19th century .

B. The emergence of the U.S. threatened Great Britain’s position as the most industrialized nation.

C. As the world’s largest exporting nation, Great Briton had far more to lose from a trade war than did any other country.

D. Great Britain had experienced severe famines and droughts in the late 18th and early 19th century.

E. Great Britain had lost the authority to impose sanctions on its colonies in 1820s.

97.The economically damaging effects of the Great Depression were worsened in 1929 by the _____.  

A. First World War

B. U.S. stock market collapse

C. spread of communism through Europe

D. Cold War between the world’s superpowers

E. harvest failure in Great Britain and famine in Ireland

98.Which of the following acts, enacted by the U.S. Congress, was aimed at avoiding rising unemployment by protecting domestic industry and diverting consumer demand away from foreign products in the 1930s?  

A. Smoot-Hawley Act

B. D’Amato Act

C. Helms-Burton Act

D. Buy America Act

E. Glass–Steagall Act

99.Enacted in 1930 by the U.S. Congress, Smoot-Hawley Act:  

A. erected a wall of tariff barriers against imports into the United States.

B. specifies that government agencies must give preference to American products when putting contracts for equipment out to bid unless the foreign products have a significant price advantage.

C. allowed Americans to sue foreign firms that use Cuban property confiscated from them after the 1959 revolution.

D. imposed trade sanctions on Palestine.

E. allowed Americans to sue foreign firms that use Libyan and Iranian property.

100.A particularly odd aspect of the Smoot-Hawley tariff-raising binge was that the United States was running a balance-of-payment surplus at the time and it was the world’s largest _____ nation.  

A. debtor

B. free-trade

C. importing

D. creditor

E. exporting