Study Questions
1. What are the major reasons for the skepticism of many developing nations regarding the comparative-advantage principle and free trade?
2. Stabilizing commodity prices has been a major objective of many primary-product nations. What are the major methods used to achieve price stabilization?
3. What are some examples of international com-modity agreements? Why have many of them broken down over time?
4. Why are the developing nations concerned with commodity-price stabilization?
The average person probably had never heard
5.of the Organization of Petroleum Exporting Countries until 1973 or 1974, when oil prices skyrocketed. In fact, OPEC was founded in 1960. Why did OPEC not achieve worldwide prominence until the 1970s? What factors con-tributed to OPEC's problems in the 1980s?
6. Why is cheating a typical problem for cartels?
7. The generalized system of preferences is intended to help developing nations gain access to world markets. Explain.
8. How are import-substitution and export-promotion policies used to aid in the industrial-ization of developing nations?
9. Describe the strategy that East Asia used from the 1970s to the 1990s to achieve high rates of economic growth. Can the Asian mirade con-tinue in the new millennium?
10. How has China achieved the status of a high-performing Asian economy? Why has China's normal-trade-relation status been a source of controversy in the United States? What are the likely effects of China's entry into the WTO?
11. What led India in the 1990s to abandon its system of import substitution, and what growth strategy did India adopt?
Attachment:- Questions.rar