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Chapter 31: Problem 23

Which statement is true? (LO4) a) There are basically no arguments that can be made on behalf of trade protection. b) The arguments for trade protection are more valid than the arguments for free trade. c) The United States has had a record of fully supporting free trade since the early 20 th century. d) Much of what we import has been produced by "sweatshop labor."

Short Answer

Expert verified
Option (d) is the most accurate statement among the given choices. While it is an exaggeration to say that "much" of what we import has been produced by "sweatshop labor," this option brings up a valid issue related to international trade, unlike the other options that can be definitively ruled out based on available evidence and general understanding.

Step by step solution

01

Option a: Arguments for trade protection

Trade protection refers to policies aimed at restricting imports and protecting domestic industries from foreign competition. These measures can include tariffs, quotas, and subsidies. Some arguments for trade protection include protecting jobs, infant industries, and preserving national security. Therefore, option (a) is not true since there are several valid arguments made on behalf of trade protection.
02

Option b: Trade protection arguments vs. free trade arguments

Trade protection and free trade both have their arguments. While trade protection aims to protect domestic industries, free trade focuses on economic efficiency and increasing overall welfare by removing barriers to international trade. Deciding which argument is more valid depends on the specific context. Nonetheless, it's worth noting that many economists support free trade as a general principle. Thus, it is not correct to blanketly state that options for trade protection are more valid than those for free trade, ruling out option (b).
03

Option c: United States free trade history

The United States' trade policy has varied throughout its history. While it has supported free trade agreements such as NAFTA and WTO, it has also implemented protectionist policies like tariffs in different periods. Therefore, it is not accurate to say that the United States has had a record of fully supporting free trade since the early 20th century. Option (c) is not true.
04

Option d: Imports and sweatshop labor

It is true that some imports have been produced by "sweatshop labor" under deplorable working conditions and low wages. However, option (d) exaggerates this problem by stating that "much" of what we import is produced this way. Many imports are also from countries with appropriate labor standards and regulations. Given the analysis, option (d) seems to be the most accurate statement, even though it is an exaggeration. While other options can be definitively false based on available evidence and general understanding, option (d) brings up a valid issue related to international trade, albeit overstated.

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Most popular questions from this chapter

Our balance of trade (LO2) a) has always been positive b) turned negative in the mid- \(1970 \mathrm{~s}\) c) turned negative in the mid- \(1980 \mathrm{~s}\) d) has always been negative

Which statement do you agree with? (LO6) a) There are several problems causing our huge trade deficit; there are no easy solutions to these problems. b) We could quickly eliminate our trade deficit by raising tariffs. c) The main reason we have a large trade deficit is that foreigners refuse to buy American goods and services. d) The main reason for our large trade deficit is our relatively low rate of economic growth.

Which statement is true about how globalization has affected American workers? (LO4, 1) a) The only jobs that have been lost or will be lost are blue-collar factory jobs. b) Most workers who have lost their jobs because of globalization have ended up in better paying jobs. c) Until now a relatively high proportion of Americans perform high-skill, well paying jobs, while a relatively high proportion of Chinese perform low- skill, poorly paying jobs. d) Globalization cannot be considered a threat to the livelihoods of highly- skilled, well paid American workers.

Imports would be lowered by \((\mathrm{LO5})\) a) tariffs only b) import quotas only c) both tariffs and import quotas d) neither tariffs nor import quotas

Our trade deficit with China in 2009 was (LO7) a) under \(\$ 100\) billion b) between \(\$ 100\) billion and \(\$ 150\) billion c) between \(\$ 150\) billion and \(\$ 200\) billion d) over \(\$ 200\) billion
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