T f 21 in recent decades the east asian newly

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T F 21. In recent decades, the East Asian “newly industrializing countries” have pursued export-led growth (outward orientation) as an industrialization strategy. T F 22. The purpose of a cartel is to support prices higher than would occur under more competitive conditions, thus increasing the profits of cartel members. T F 23. A cartel tends to be most successful in maximizing the profits of its members when there are a large number of producers in the cartel and these producers’ cost and demand conditions greatly differ from each other. 11
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Chapter 8: Trade Policies for the Developing Nations T F 24. When cartel members agree to restrict output to increase the price of their product, a single member of the cartel has an economic incentive to violate the agreement by increasing its output so as to increase profits. T F 25. Developing countries have often felt that it is easier to protect their manufacturers, via import-substitution policies, against foreign competitors than to force industrial nations to reduce trade restrictions on products exported by developing countries. T F 26. Import-substitution policies are supported by the fact that many developing countries have small domestic markets and thus their producers enjoy the benefits of diseconomies of small-scale production. T F 27. Export-led growth industrialization suffers a major problem: it depends on the willingness and ability of foreign nations to absorb the goods exported by the country pursuing such a policy. T F 28. The so-called Four Tigers include Australia, South Korea, Taiwan, and Hong Kong. T F 29. By the 1990s, China had departed from a capitalistic economy and shifted to a Soviet-type economy encompassing small-scale, labor-intensive industry. T F 30. During the late 1980s and early 1990s, China dismantled much of its centrally-planned economy and permitted free enterprise to replace it. T F 31. In its transition toward capitalism, by the 1990s China permitted free enterprise as well as democracy for its people. T F 32. Most of China’s manufactured exports have constituted labor-intensive goods. T F 33. In 1999 the United States revoked the normal-trade-relations (most-favored-nation) status it provided China in retaliation for China’s suppression of human rights. T F 34. A multilateral contract specifies the maximum price at which exporting countries agree to sell a product and the minimum price at which importing countries agree to buy a product. T F 35. As a profit-maximizing cartel, the Organization of Petroleum Exporting Countries would produce a greater output and charge a lower price than what would occur in a competitive market. T F 36. The success of buffer stocks is limited by the fact that stockpiles of a product may be exhausted after prolonged sales, while funds may be exhausted after prolonged purchases. T F 37. The United Nation Conference on Trade and Development in 1964 was successful in convincing developing countries to switch from export-led industrialization to import-substitution industrialization.
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