Question 1

The global commercial aircraft industry was dominated by two American firms until the early 1990s because
A) tariffs and quotas kept European firms out of the American market.
B) of different sector advantages influenced by domestic interest groups.
C) of earlier government support of funding for research & development (R&D) and defense related purchases.
D) of late-mover advantages to utilize the most recent technological innovations.
E) failure of Japanese government to successfully utilize industrial policy in this sector unlike their success in the semi-conductor sector.

Accepted Answer

The answer of The global commercial aircraft industry was dominated...

Question 2

A late-industrializing country is one that is trying to develop manufacturing industries in competition with established manufacturing industries in other countries.

Accepted Answer

A late-industrializing country refers to a country that is attempting to catch up with other industrialized countries by developing manufacturing industries. This means that they are in competition with established manufacturing industries in other countries.

Question 3

The infant industry case for protection argues that there are cases in which newly created firms will not be efficient initially but could be efficient in the long run if they are given time to mature.

Accepted Answer

The infant industry case for protection argues that protecting these new firms from foreign competition can help to create a domestic industry that will be efficient in the long run, even if they are not initially efficient. This can be achieved by allowing them time to develop and gain experience, while also protecting them from external competition.

Question 4

The state-centered approach to trade politics argues that national policymakers intervene in the economy in pursuit of national objectives that are dependent on domestic groups' self-interested concerns.

Accepted Answer

The state-centered approach to trade politics argues that national policymakers intervene in the economy primarily to pursue the broader national interest, which may not always align with the specific interests of domestic groups. This approach emphasizes the role of the state in making autonomous decisions that it perceives as best for the nation as a whole, rather than being driven solely by the self-interested concerns of domestic groups.

Question 5

State strength is the degree to which national policymakers are insulated from domestic interest group pressures.

Accepted Answer

State strength refers to the ability of national policymakers to resist pressure from domestic interest groups and other political actors. The stronger the state, the more insulated policymakers are from these pressures, allowing them to pursue policies that may not be popular with certain groups but are in the best interests of the country as a whole. Therefore, the statement is true.

Question 6

European global commercial aircraft firms were able to catch up to American firms by the late 1990s because
A) they used similar industrial policy tactics used by American governments in a previous era.
B) of different sector advantages obtained by European domestic interest groups.
C) tariffs and quotas kept American firms out of the European market.
D) of late-mover advantages to utilize the most recent technological innovations.
E) the US was unsuccessful in of obtaining WTO sanctions against their illegal actions.

Accepted Answer

European firms adopted industrial policy tactics similar to those previously used by American governments, such as government subsidies and support, to bolster their own commercial aircraft industry and compete effectively with American firms.

Question 7

Economies of experience arise when efficient production requires specific skills that can only be acquired through extensive research and development in the industry.

Accepted Answer

Economies of experience, often referred to as learning or experience curves, arise from the improvement in production efficiency and cost reduction as a company gains experience in manufacturing a product over time, not specifically from skills acquired through extensive research and development.

Question 8

Countries losing high-technology industries as a consequence of the industrial policies pursued by other countries often respond by supporting their own firms in a similar way.

Accepted Answer

This is true, as countries may feel that they need to support their own firms in order to remain competitive and not fall behind in the global market. This can lead to a cycle of protectionism and trade tensions between countries.

Question 9

Explain the differences and similarities between society-centered and state-centered approaches to trade politics.

Accepted Answer

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Question 10

Weak states may be less able to implement industrial policies that redistribute societal resources because policymakers need worry less that such policies will have a negative impact on their position of power.

Accepted Answer

Weak states may be less able to implement industrial policies that redistribute societal resources effectively because they often lack the institutional capacity to enforce policies and may fear that redistributive policies could destabilize their hold on power by alienating powerful elites or interest groups.

Question 11

Efficiency gains realized as a result of greater experience dynamics are often called
A) "moving up the learning curve".
B) "moving down the learning curve".
C) "moving up the indifference curve".
D) "moving down the indifference curve".
E) "moving up the profitability curve".

Accepted Answer

Efficiency gains from experience are referred to as "moving down the learning curve," indicating reduced costs and increased efficiency as experience is gained.

Question 12

Microfoundations are explanations that set out the incentive structure that
A) encourages state officials to adopt policies that promote global welfare.
B) encourages state officials to adopt policies that promote their re-election.
C) encourages state officials to adopt policies that promote national welfare.
D) encourages state officials to adopt policies that promote micro-businesses.
E) encourages state officials to adopt policies that compensate for factor immobility.

Accepted Answer

The answer of Microfoundations are explanations that set out the...

Question 13

Economies of scale arise when the unit cost of producing falls as the number of units produced rises.

Accepted Answer

This statement accurately defines economies of scale. As production volume increases, fixed costs such as machinery and equipment can be spread across a larger number of units, resulting in a lower cost per unit. Additionally, efficiency gains may be achieved through processes such as specialization and automation, further reducing the unit cost.

Question 14

In general,state-centered approaches are useful because they
A) better explain national security microfoundational reward incentives.
B) better establish the parameters in which policy must be made.
C) better explain how government intervention can improve national welfare.
D) better explain state autonomy in democratic political systems.
E) better provide a useful check on the tendency to focus exclusively on the interests of interest groups.

Accepted Answer

The answer of In general,state-centered approaches are useful because they
A)...

Question 15

Explain the costs and benefits of state-centered rationale for government intervention compared to standard trade theory.

Accepted Answer

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Question 16

Explain the rationale for infant industry protectionism first proposed by Alexander Hamilton in the 1790s and Fredrick List in the mid-nineteenth century.

Accepted Answer

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Question 17

Strategic trade theory asserts that many high-tech industries are characterized by oligopolistic competition that often has a first-mover advantage.

Accepted Answer

Strategic trade theory argues that in industries with high levels of research and development and technological advancement, firms may achieve a first-mover advantage that allows them to establish dominance and capture a larger share of the market. This can lead to monopolistic or oligopolistic competition, where a few powerful players dominate the industry.

Question 18

Explain the differences between economies of scale and economies of experience using the example of commercial aircraft.

Accepted Answer

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Question 19

Efficiency gains realized as a result of greater skill in production are often called "moving up the learning curve".

Accepted Answer

The answer of Efficiency gains realized as a result of...

Question 20

Explain how society-centered approaches differ from state-centered approaches with regard to state autonomy.

Accepted Answer

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Quiz 5: A State-Centered Approach to Trade Politics

The global commercial aircraft industry was dominated by two American firms until the early 1990s because