79. Why is retaliation by government intervention a risky strategy?
80. Cadmia banned imports of Mattel toys with high levels of toxic lead, manufactured in
Argonia. The underlying motive for such a move could be:
81. The act that allows Americans to sue foreign firms that use property in Cuba confiscated
from them after the 1959 revolution is known as the:
82. Which one of the following Acts represents U.S. legislation that is similar to the Helms–
Burton Act, but is aimed at Libya and Iran?
83. Which one of the following is a consequence of Helms-Burton Act?
84. Which of the following is the oldest economic argument for government intervention in
international trade?
85. According to _____, many developing countries have a potential comparative advantage in
manufacturing, but new manufacturing industries cannot initially compete with well-established
industries in developed countries.
86. _____ has recognized the infant industry argument as a legitimate reason for
protectionism.
87. One of the main reasons why many economists remain critical of the infant industry
argument is its reliance on the assumption that:
88. Which of the following is a major reason why many economists remain critical of the
infant industry argument?
89. According to the _____ argument, a government should use subsidies to support
promising firms that are active in newly emerging industries.
90. According to Paul Krugman, a country that attempts to use strategic trade policy to
establish a domestic firm in a dominant position in a global industry, is most likely to:
91. According to Krugman, which of the following best indicates the dangers of a strategic
trade policy?
92. According to Krugman, the ideal way for a country to respond, when the foreign
competitors of its companies are already being supported by government subsidies, is probably
not to engage in retaliatory action, but to:
93. Which of the following is an argument against embracing strategic trade policy?
94. Which of the following historical events signifies the first official embracing of free trade
as a government policy by a country?
95. Which of the following indicates the reason for the British Parliament repealing the Corn
Laws in 1846?
96. Which of the following indicates the reason for Great Britain to push the case for trade
liberalization for as long as 80 years in the 19th and early 20th century?
97. The economically damaging effects of the Great Depression were worsened in 1929 by
the _____.
98. Which of the following acts, enacted by the U.S. Congress, was aimed at avoiding rising
unemployment by protecting domestic industry and diverting consumer demand away from
foreign products in the 1930s?