The U.S. is probably the most open international market among the industrialized countries. What then does the U.S. have to gain by joining the WTO?
What will be an ideal response?
There are two answers. First, the U.S. exporters stand to gain profitable markets if foreign protectionism in areas of U.S. comparative advantage (e.g., soy) is removed due to WTO efforts. The second is that the WTO offers the U.S. government administration a counterweight to regional and sectoral interests demanding protection. It is always politically easier to bring about more efficient resource allocations if the complaints of the losers may be deflected by the presence of a binding treaty with an international organization ("our hands are tied").
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_____ improves exchangeability, and reduces the cost of obtaining information about a good and about the parties involved in the transaction
a. De-integration b. Outsourcing c. Vertical integration d. Standardization
If a firm wants to borrow it can
a. supply bonds by selling them. b. supply bonds by buying them. c. demand bonds by selling them. d. demand bonds by buying them.
If firms in a monopolistically competitive market are earning negative economic profits, the demand curve of a single firm will likely:
A. shift right, as other firms enter the industry. B. shift left, as other firms enter the industry. C. shift left, as other firms leave the industry. D. shift right, as other firms leave the industry.
This table shows the price-level adjustment as compared to the United States. CountryPrice-Level AdjustmentAustralia-0.50China0.25Mexico0.34United States0.00According to the table shown, if Bob is earning $30,000 in the United States and Bill is earning $40,000 in Mexico, what can be said about their standards of living?
A. Bill is earning more in real terms than Bob. B. Bob and Bill are earning the same amount in real terms. C. Bob and Bill are earning the same amount in nominal terms. D. Bob is earning more in real terms than Bill.