Suppose two nations are seeking to expand their commercial relations. What options do they have in terms of addressing conflicts in standards? Describe each and what conditions might favor different approaches to setting standards

What will be an ideal response?


With harmonization of standards, the nations create a mutually acceptable common standard. With mutual recognition of standards, each nation keeps its own standards, but accepts the other nation's standard as equally valid and acceptable. With separate standards, each nation keeps its own standards, and any products flowing into the nation must meet that nation's individual standards. Adoption of a common set of standards gives a competitive advantage to firms that are already producing to that standard. Wide variation in world incomes means that economic conditions and living standards are vastly different between low-income and high-income countries, which might make separate standards a better choice. Sharing standards creates a larger, more unified market and creates greater efficiency. If, however, an inferior standard is adopted, it might lock in place a less efficient solution and harm future development. It may also be difficult for low-income countries to have the administrative, scientific, and technological capacity to design and enforce standards, much less have the same priorities as high-income countries.

Economics

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Money is used in an economy because: a. goods and services are produced in accordance with demand

b. the exchange of goods for money is less troublesome than barter. c. some goods or services are difficult to provide because of the scarcity of resources. d. some merchants may offer goods for a select clientele.

Economics

The world's largest exporter is

A. the United States. B. Japan. C. Germany. D. China.

Economics

How are most fundamental economic decisions now determined in China?

A) Individuals, firms, and the government interact in a market to make these economic decisions. B) These decisions are made by the country's elders who have had much experience in answering these questions. C) The government decides because China is a centrally planned economy. D) The United Nations decides because China is a developing economy.

Economics

A firm sets its output where

A) marginal profit minus marginal cost equals zero (MP - MC = 0). B) marginal revenue minus marginal profit equals zero (MR - MP = 0). C) marginal revenue minus marginal cost equals zero (MR - MC = 0). D) marginal revenue minus marginal cost is greater than zero (MR - MC > 0)

Economics