39.A tariff improves Home’s terms of trade and worsens Foreign’s, while a Home export subsidy worsens Home’s terms of trade and improve Foreign’s.
(
)
40. Where there is economies of scale, there is imperfectly competitive market structure.

(
)
41.If intraindustry trade is the dominant source of gains from trade, everyone gains from trade.

(
)
42.Effect on the distribution of income within countries often weight more heavily on policy than terms of trade concerns.

(
)
43.The usual market structure in industries characterized by internal economies of scale is monopolistic competition.
(
)

44.Today, antidumping may be a device of protectionism.
(
)
45.Reciprocal dumping tends to increase the volume of trade in goods that are quite identical.

(
)
46.It is possible that reciprocal dumping increase national welfare.
(
)

47.Strong external economies tend to “locked in” the existing patterns of interindustry trade, even if the patterns are run counter to comparative advantage.
(
)

48.A trading country can conceivably lose from trade is protentially justify protectionism.
(
)
49.Like static external economies, dynamic external economies can lock in an initial advantage in an industry.

(
)
50.The stratigic trade policy is related to the model of “Monopolistic
competition, differentiate products and intraindustry trade”.
(
)
51.The model “Oligopoly, homogeneous products and intraindustry trade” is first developed by Krugman and Helpman .
(
)
52.Trade in factors is very much like trade in goods, it occurs for much the same reasons and produces similar results.
(
)
53.Trade in factors is an alternative to trade in goods for the allocation of resources. (
)
54.When a country borrows, it’s intertemporal PPF is biased toward QP.
(
)
55.The relative price of future consumption goods QP is (1+r).
(
)
56.The dynamic path of TNCs’ enter foreign market：FDI→Export→Licence. (
)
57.Tariffs may have very different effects on different stages of production of a good. (
)
58.Nominal tariff reflects the effective rate of protection.
(
)
59.The costs and benefits analysis of a tariff is correct if only the direct gains to producers and consumers in a given market accurately measure the social gains. (
)
60.The costs and benefits analysis of a tariff is correct if only a dollar’s worth of benefits to each group is the same.

(
)
61.A VER is exactly like an import quota which the license are assigned to foreign government.
(
)
62.VERS are much more costly than tariffs.
(
)
63.Local content laws have been widely used by developing countries trying to shift their manufacturing from assembly back into intermediate goods.
(
)
64. A political argument for free trade reflects the fact that a political commitment to free trade may be a good idea in practice even though there may be better policies in principle.
(
)
65.Deviations from free trade can sometimes increase national welfare.
(
)
66.For a sufficiently small tariff the terms of trade gain of small country must outweigh the efficiency loss.
(
)
67.The domestic market failure argument against free trade is intellectually impeccable but of doubtful usefulness.

(
)
68. “U.S. farm exports don’t just mean higher incomes for farmers — they mean higher income for everyone who sell goods and services to the U.S. farm sector”. This remark is a potential valid argument for export subsidy.

(
)
69.Most deviations from free trade are adopted not because their benefit exceed their costs but because the public fails to understand their true costs.
(
)
70.If there is marginal social costs rather than marginal social benefits, domestic market failure reinforce the case for free trade.
(
)
71.The electoral competition model believes political competition will drive both parties to propose tariffs close to tM, the tariff preferred by the medium voter. (
)
72.The problem of collective action can best be overcome when a group is large and/or well organized.
(
)
73.Trade policy that produce more costs than benefits, hurt more consumers than producers can’t be adopted.
(
)
74. As a violation of the MFN(“most favored nation”) principle, the WTO forbids preferential trading agreements in general, but allows them if they lead to free trade between the agreeing countries.

(
)
75.The infant industry argumentviolates the principle of comparative advantage(
)
76.Import substituting industrialization violates the principle of comparative advantage.

(
)
77. “Import quotas on capital-intensive industrial goods and subsidies for the import of capital equipment were meant to create manufacturing jobs in many developing countries. Unfortunately, they have probably helped create the urban unemployment problem.”
(
)
78.The East Asian Miracle proved that industrialization and development must be based on import substitution.
(
)
79.It is impossible for country to make itself worse off by joining accustoms union. (
)
PartⅢ. Choose the ONLY one collect answer in each question.
1. An important insight of international trade theory is that when countries exchange goods and services one with the other it

• is always beneficial to both countries.
• is usually beneficial to both countries.
• is typically beneficial only to the low wage trade partner country .
• is typically harmful to the technologically lagging country.
• tends to create unemployment in both countries.

Answer: B2. If there are large disparities in wage levels between countries, then
A. trade is likely to be harmful to both countries.
B. trade is likely to be harmful to the country with the high wages.
C. trade is likely to be harmful to the country with the low wages.
D. trade is likely to be harmful to neither country.

E. trade is likely to have no effect on either country.