The Mercantilism case study argues that some groups in a nation believe that free trade can be harmful overall to a nation, and thus restrict free…

The Mercantilism case study argues that

some groups in a nation believe that free trade can be harmful overall to a nation, and thus restrict free trade.

most nations understand the general benefits of free trade, but continue to impose some trade restrictions because of future international political gains.

most nations understand the general benefits of free trade, but continue to impose some trade restrictions because of special interests.

most nations understand the general benefits of free trade, but continue to impose some trade restrictions because of likely niches of comparative advantage in the future.

Countries often resort to imposing barriers to trade during difficult economic times. Recall the Great Depression, which began in 1929, where unemployment increased to 25 percent in 1933. One reason for both the depth and long duration of the Great Depression was

in 1930, the US passed the Smoot-Hawley Tariff Act, which increased average import duties to an all-time high of 59 percent in an attempt to stimulate domestic employment.

in the early 1930s, the US pursued contractionary fiscal and monetary policy.

the serious implications of the Great Depression were inevitable given the stock market crash.

in the mid-1930s, the international organization called GATT, the General Agreement on Tariffs and Trade, was created to stimulate international trade.

The EU

was established because all member countries used a common currency, the ECU, which is based on the weighted average of the currencies of the EU members.

is currently an economic union, with unification of monetary and fiscal policies.

was initially established as a custom union in 1957, and added the free movement of labor and capital to become a common market in 1993.

requires all members to be part of the Eurozone, i.e., adopt the EURO as the common currency and sole legal tender.

There were many predictions about what might happen if Britain approved Brexit; the “Remainers” (citizens who voted to remain in the EU) forecasted dire economic results, whereas some “Leavers” (citizens who voted to leave the EU) predicted a Brexit Boom. What statement best describes the economic situation in Britain 6 weeks after the vote supporting Brexit, according to the article?

Britain has entered a recession.

The initial negative impact of the vote, e.g., on the pound and the stock market, seems to have passed, but economic growth is barely positive and other market indicators are quite mixed.

Britain is now assured that a recession will not take place in the next several years.

The initial negative impact seems to be continuing, but over time these negative factors should decline in importance.

The Trans-Pacific Partnership, or TPP, is a trade treaty that

all of the other answers.

has been agreed upon and ratified by member countries.

began with the 2006 P4 Trade Agreement among Brunei, Chile, Canada, and Japan.

involves 12 countries – the US, Japan, Malaysia, Vietnam, Singapore, Brunei, Australia, New Zealand, Canada, Mexico, Chile, and Peru – with a total population of 800 million, close to double of the population of the EU member countries.

Which of the following is true about TPP?

it represents an economic union.

it represents a customs union.

none of the other answers.

it represents a free trade area.

Which of the following is not one of the criticisms of TPP?

Opponents claim that TPP would assist companies to sue governments that change policy of topics such as health and education.

China, with its immense economic market, has been strongly opposed to TPP.

TPP will lead to more intensive competition between the labor forces of the member countries.

Opponents argue that the complicated negotiations were secretive, without the knowledge of affected voters.

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