C must large commodity price fluctuations result in

Info icon This preview shows pages 17–20. Sign up to view the full content.

View Full Document Right Arrow Icon
c. Must large commodity price fluctuations result in large fluctuations in the foreign currency earnings of the exporting country? 3. a. How might the Tokyo and Uruguay Rounds affect the value of the GSP for the LDCs? b. Do the terms trade diversion and trade creation have a meaning in the analysis of preferences (such as the GSP)? Explain. 4. Does the traditional analysis of customs unions apply without reservation to economic integration among LDCs? What special problems are encountered in the formation of such groupings? 5. Describe the main features of the GSP schemes granted by the United States, the EU, and Japan. 6. How can trade liberalization exist on a nondiscriminatory basis versus a discriminatory basis? What are some actual examples of each? 7. What is meant by the term economic integration? What are the various stages that economic integration can take? 8. How do the static welfare effects of trade creation and trade diversion relate to a nation’s decision to form a customs union? Of what importance to this decision are the dynamic welfare effects? 9. Why has the so-called common agricultural policy been a controversial issue for the European Union? 10. What are the welfare effects of trade creation and trade diversion for the European Union, as determined by empirical studies? 17
Image of page 17

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon