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Arguments Against International Trade quiz #1 Flashcards

Arguments Against International Trade quiz #1
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  • What is the definition of trade protectionism?
    Trade protectionism is the practice of shielding domestic industries from foreign competition by using measures such as tariffs, quotas, and other trade restrictions.
  • Which of the following is not expected to occur as a result of international trade?
    A complete loss of all domestic jobs is not expected; instead, jobs shift to industries where the country has a comparative advantage.
  • Which of the following is not a frequently cited reason for restricting trade with other countries?
    Increasing the variety of goods available to consumers is not a reason for restricting trade; it is a benefit of trade.
  • Which is not a commonly heard argument for protectionism?
    Lowering consumer prices through foreign competition is not an argument for protectionism; it is a benefit of trade.
  • Which of the following is a risk associated with international trade?
    A risk is the potential threat to national security if key resources are traded to foreign countries.
  • What would most Americans see as a disadvantage of globalization?
    Most Americans may see job losses in certain industries as a disadvantage of globalization.
  • Why would a mercantilist government be interested in other areas of the world?
    A mercantilist government would be interested in other areas to expand its access to resources and markets, aiming to increase national wealth through trade surpluses.
  • What is one negative effect of current patterns in global trade?
    One negative effect is the loss of jobs in industries where a country does not have a comparative advantage.
  • Which of the following is not mentioned by Professor Cowen as one of the benefits of trade?
    Protection of domestic industries from foreign competition is not mentioned as a benefit; instead, benefits include increased variety of goods, lower costs, greater efficiency, and enhanced flow of ideas.
  • What is a potential downside of using trade restrictions as a bargaining chip in international negotiations?
    Using trade restrictions as leverage can backfire if the other country calls your bluff, potentially resulting in political embarrassment and loss of international credibility.