Question

QUESTION 9

1. Intraindustry trade tends to give rise to more protectionist pressure than does interindustry trade.

True

False

QUESTION 10

1. Owners of resources that are abundant in a country are less likely to want trade protection than are owners of resources that are scarce in the country.

True

False

QUESTION 11

1. Suppose there are specific factors of production that (in the short run) can't easily be transferred from an import sector of the economy to an export sector or a non-trade sector of the economy. The owners of these factors have an incentive to apply pressure to get trade protection.

True

False

QUESTION 12

1. As a form of trade protection, non-tariff barriers are generally considered to be not as bad as tariff barriers.

True

False

Answer 1

1) False

In the markets with high degree of intra industry trade the firms are more likely to resist the removal of discrimination than would firm in inter industry trade.

2) True

3) True

4) True