Question 1

What are the "gains" from trade highlighted by classical trade theory highlights?

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Question 2

What are potential "pains" emanating from trade based on comparative advantages?

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Question 3

What are the main reasons given for trade policies?

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Question 4

What are anti-dumping measures?

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Question 5

What are the welfare effects of a tariff and how do they compare to those of a voluntary export restraint?

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Question 6

What is meant by "labour standards" in international trade policies?

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Question 7

Are lower wages abroad a sufficient argument to impose "labour standards"?

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Question 8

What is the likely impact of CO₂ taxes on global trade?

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Question 9

Will robotisation and digitalisation necessarily lead to less trade globalisation?

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Question 10

Should firms always reconfigure their global value chains when circumstances change? Discuss in the context of Covid-19 pandemic?

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Question 11

Identify the 5 correct statements 
1. According to classical trade theory countries should engage in free trade to help domestic companies to become successful exporters.
2. According to classical trade theory countries should engage in free trade because of the consumer benefits from lower prices resulting from a more efficient distribution of labour.
3. There is a risk that in reality structural change emanating from opening-up economies can result in persistent structural unemployment or real income losses.
4. Import quotas are a standard trade policy instrument that is allowed by the WTO and hence often used to deal with a sudden surge of foreign imports.
5. A voluntary export restraint (VER) is more harmful in terms of welfare losses to the protectionist country than a tariff.
6. A voluntary export restraint (VER) can be beneficial for the export-restrained foreign exporter.
7. Lower wages abroad constitute an unfair trade practice.
8. A carbon dioxide tax would lead to lower global trade, and thus to a reduction of global welfare.
9. Robotisation can stimulate re-shoring or nearshoring of production.
10. Incidences like the Covid-19 pandemic clearly show the need of having fully national value chains in order to secure a steady supply of critical health products.

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1. According...

Quiz 3: Global Trade