1. Trade based on product differentiation is least applicable to A) Crude oil B) Automobiles C) Athletic shoes D) Soft drinks Answer: Page: 143 2. According to Case Study 6-3, NAFTA led to a sharp increase in the intra-industry trade between US and in the automotive industry. A) Canada B) Mexico C) Europe D) Japan Answer: Page: 114 3. According to Case Study 6-3, which of the factors contribute to the decline in the intra- industry trade in the automotive industry between US and Europe in 2010? A) A trade dispute between US and EU in 2010 involving the automotive industry B) Slow economic growth in the US and worldwide after the 2008-2009 great economic recession C) A disruption to the global supply chain due to a natural disaster D) All of the above Answer: Page: 114 4. The welfare gains from trade can be measured in terms of A) Lower prices of the imported goods B) Higher consumption enjoyed by consumers C) Greater variety of goods available to consumers D) All of above Answer: Page: 115, Case Study 6-4