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Finland Is a Prosperous and Homogeneous Nation

Question 189

Multiple Choice

Finland is a prosperous and homogeneous nation. Its merchandise exports in 2002 were valued at $43.8 billion, and its merchandise import for the same period was $30.6 billion. Its leading industries are telecommunications, shipbuilding, and forestry. It is the home to Nokia, the world's leading mobile phone maker. Nokia predicted that its worldwide sales in 2003 would increase by 10 percent. One of country's strengths is its shipbuilding industry, which is more efficient that it's Asian counterparts and has a reputation for innovation. One of the country's weaknesses is how difficult it for people from different cultures to be assimilated into the Finnish culture. The Finns blame the language, the climate, and the lack of existing foreign communities, but neighboring Sweden has a strong immigrant population.
-Three decades ago, the Finnish government subsidized its shipbuilding industry. This means:


A) the shipbuilding industry in Finland became a gray market for oceangoing vessels.
B) the Finnish government owned and operated the nation's shipbuilding industry as a monopoly.
C) the government paid some of the manufacturing costs which allowed Finland to sell its ships in foreign markets at prices lower than the prices of domestic producers.
D) the Finnish shipbuilding industry was unable to create a comparative advantage due to government intervention.
E) the government refused to provide any financial support for the industry, and as a result Finnish ships sold in foreign markets were priced higher than the prices of domestic ones.

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