Which of the following is not an argument for protectionism ?

Related Mcqs:

1. Recent pressures for protectionism in the United States have been motivated by all of the following except ?

   A. U.S firms shipping component production overseas
   B. High profit levels for American corporations
   C. Sluggish rates of productivity growth in the United States
   D. High unemployment rates among America workers

2. The strongest political pressure for a trade policy that results in higher protectionism comes from?

   A. domestic workers lobbying for import restriction
   B. domestic workers lobbying for export restrictions
   C. domestic consumers lobbying for export restrictions
   D. domestic consumers lobbying for import restrictions

3. Many U.S firms have sought relief from foreign competition by demanding protectionism policies by the U.S government. A better way for companies to compete is to expand into foreign markets and ?

   A. lower prices
   B. increase promotion both at home and abroad
   C. continuously improve their products at home
   D. join into cartels at home

4. Which of the following is not an argument put forth by economists in support of the use of advertising ?

   A. Advertising increases competition
   B. Advertising provides information to customers about prices, new products and location of retail outlets.
   C. Advertising provides a creative outlet for artists and writers
   D. Advertising provides new firms with the means to attract customers from existing firms.

5. Which one of the following is not an argument in support of the UK joining the EMU ?

   A. None of these arguments they are all arguments in support of the UK joining the UMU
   B. The characteristics of the UK housing market make UK consumers expenditure very sensitive to changes in interest rates
   C. The UK risks exclusion from the Euroland capital market with damaging consequences with damaging
   D. The UK needs to be a member of the EMU in order to continue to attract such large share of foreign direct investment in EU countries

6. The argument that U.S current account deficits cause net job losses for Americans ?

   A. is true by definition in all possible circumstances
   B. is supported by recent U.S history
   C. focuses only on the overall economy and is thus always true
   D. fails to recognize that a current account deficit is matched by an equal inflow of foreign funds which finances employment increasing investment spending

7. The national security argument for protection is more likely to be valid when ?

   A. The purpose is to maintain protection for an indefinite time period
   B. The industry is characterized by increasing returns to scale
   C. The economy operates during a recession
   D. The protected industry provides invaluable goods during periods of war

8. According to the _____ argument for protection, tariffs can shield new industries from import competition until they have grown strong and efficient enough to withstand the competition by foreign producers ?

   A. scientific tariff argument
   B. infant industry argument
   C. beggar they neighbor argument
   D. foreign dumping argument

9. If a company (considering its options on the product/market expansion grid) chooses to move into different unrelated fields (from what it ha ever done before) with new products as a means to stimulate growth the company would be following which of the following general strategies ?

   A. market penetrations
   B. market development
   C. product development
   D. diversification

10. All of the following represent obstacles to LDC development except ?

    A. resource scarcity
    B. low levels of investment
    C. low population
    D. poor infrastructure
    E. poor human capital