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D. all of the above

13. The benefit that Mexico is likely to receive from NAFTA: A. greater export-led growth

B. encouraging the return of flight capital C. more rapid structural change *D. all of the above

14. Which is a stumbling block to successful economic integration among groups of developing nations?

A. benefits are not evenly distributed among nations

B. many developing nations are not willing to relinquish part of their newly-acquired sovereignty to a supranational community body, as required for successful economic integration

C. the complementary nature of their economies and competition for the same world markets for their agricultural exports *D. all of the above

15. The formation of a free trade area among the countries of Eastern Europe is advocated in order to: A. restore trade trading

*B. retain the traditional trade links that can be justified on market principles C. reduce the need for structural change D. none of the above 思考题：

建立关税同盟对成员国和非成员国有何短期和长期影响？

为什么我国一方面积极加入WTO,另一方面也积极参加各种区域一体化组织？这两种类型的一体化关系如何？

为什么关税同盟理论是次优理论的一个例子？

在什么情况下关税同盟的形成更可能导致贸易创造和增加福利？ Chapter 11: International Trade and Economic Development Multiple-choice Question:

1. According to traditional trade theory, a developing nation should export the commodity:

A. of its comparative advantage

B. that it can produce relatively more efficiently C. intensive in the nation's relatively abundant factor *D. all of the above

2. Which of the following is false with respect to traditional trade theory? A. it can incorporate changes in factor endowments and technology B. it leads to the best allocation of resources at any point in time *C. it is a dynamic theory

D. it is based on comparative advantage

3. According to Nurkse, international trade was an engine of growth for: *A. the regions of recent settlements during the 19th century B. regions of recent settlements during the 20th century C. developed nations during the 19th century D. developed nations during the 20th century

4. Trade cannot be an engine of growth for today’s developing nations because: A. the income elasticity for many their exports is less than 1 B. the development of synthetic substitutes

C. technical advances reduced the raw-material content of many products *D. all of the above

5. If the price of a nation’s exports and imports both rise, the nation’s commodity terms of trade:

A. improve B. deteriorate C. remain unchanged *D. any of the above

6. The nation’s commodity terms of trade times the productivity index in its export sector gives the nation’s: A. income terms of trade B. double factoral terms of trade *C. single factoral terms of trade D. barter terms of trade

7. When a nation’s commodity terms of trade deteriorate and its single factoral terms of trade improve, the nation’s welfare: A. falls *B. rises

C. remains unchanged D. any of the above

8. Developing nations often experience wildly fluctuating export prices for their primary products because of:

A. inelastic and stable demand and supply B. elastic and unstable demand and supply *C. inelastic and unstable demand and supply D. elastic and stable demand and supply

9. MacBean found that the export instability faced by developing nations was: *A. not very large and did not seriously interface with development B. very large and seriously interfered with development C. very large but did not seriously interfere with development

D. not very large but seriously interfered with development

10. Supporting the price of a commodity by buying it when its price is low is: *A. a buffer stock B. a purchase contract C. an export control D. a marketing board

11. The policy of import substitution was most vigorously followed by: A. large developing nations during the 1970’s *B. large developing nations during the 1960’s C. small developing nations during the 1970’s D. small developing nations during the 1960’s

12. What is the advantage of a policy of import substitution?

A. setting up an industry to replace imports minimizes risk of failure because the market for the product already exists in the nation as evidenced by the nation’s imports of the commodity

B. It is easier for developing nations to protect their domestic market against foreign competition than to force developed nations to lower their trade barriers against their manufactured exports

C. foreign firms are induced to establish tariff factories to overcome the tariff wall of developing nations *D. all of the above

13. Which are is not an advantage of export-oriented industrialization? A. It overcomes the smallness of the domestic market and allows developing nations to take advantages of economies of scale

*B. domestic industries grow accustomed to protection and have an incentive to become more efficient

C. production of manufactured goods for export requires and stimulates efficiency throughout the economy

D. the expansion of manufactured exports is not limited by the size of the domestic market

14. Those nations that liberalized trade during the past decade *A. grew faster than that did not

B. grew more slowly than those that did not C. grew at about the same rate as those that did not D. any of the above

15. Which of the following is not part of the demand for a NIEO? A. the establishment of international commodity agreements

*B. preferential access for the manufactured exports of developed nations C. removal of the agricultural trade barriers in developed nations D. increasing the yearly flow of foreign aid to developing nations

Chapter 12: International Resource Movementsand Multinational Corporations Multiple-choice Question:

1. Portfolio investments refer primarily to: A. direct investments *B. bonds C. liquid assets D. short-term assets

2. Direct investments usually involve the transfer of: A. capital B. technology C. management *D. all of the above