Question

Please indicate true or false next to each statement (only one of them is true)

13. The following statements are based on historical evidence about globalisation: In the late 19th century the correlation between tariffs and economic growth across relatively countries, s their firms to compete in international markets had high growth rates. After they reduced their tariffs in the early 1990s, Latin American countries had lower rates of economic growth than between 1945 and 1980 when they were more closed. Scandinavian countries have been very open to trade for over a century and have prospered. They also have very high taxes to support generous social insurance. Based on this information, answer the following T/F: select one anseras true rich uch as Germany and the US, was positive. Post-1945, East Asian countries which encouraged Globalisation ensures high growth. Countries may sometimes benefit from temporarily imposing tariffs, for example to protect infant industries, so that those industries can benefit from learning by doing and economies of scale. Latin American countries failed to grow faster post-1990s as they did not reduce tariffs enough. Scandinavian countries were able to sustain high growth rates despite restricting competition from globalisation. a. b. c. d.

Answer 1

13. From the above given information, we can get the answers as.

a) False. Globalization did not ensure higher economic growth. We can understand this from the example of Latin American countries. In general, although some countries achieve higher economic growth from globalization, some countries did not get much benefit.

b) True. Countries may sometimes benefit from temporarily imposing tariffs, for example to protect infant industries, so that those industries can benefit from learning by doing and economies of scale.

c) False. Latin American countries failed to grow faster after 1990s despite of reducing the tariffs.

d) False. Scandinavian countries have been achieving higher growth rates. But they did not restrict competition from globalization. They have been very open to trade.