53. What keeps many poor nations from lowering tariffs to more freely engage in world trade? 54. 55. 56. Oil is a valuable resource. Why is it that many oil rich countries have had trouble developing? 57. 58. 59. True / False The IMF Provides loans & grants to developing nations for poverty reduction & economic development. 60. True / False The world bank acts as a bank for the central banks of member nations. 61. True / False The Export Substitution Strategy towards development creates Trade and industrial incentives that favor production for the domestic market over the export market and is an Extension of Infant-industry argument. 62. True / False An Advantage of Import Substitution Policy is that it creates incentives for increased efficiency. 63. Which has been more successful for poor countries to develop. a. Import Substitution C. Export Orientation b. Export Substitution d. Import Orientation 64. NAFTA is an example of what type of regional trading agreement 65. EU is an example of what type of regional trading agreement 66. The removal of all tariff and non-tariff barriers are an example of what type of regional trading agreement 67. If Mexico Canada and the US were to agree to have the same tariffs on external countries products that would be an example of a characteristic of what type of regional trade agreement. 68. A common market differs from a customs union in what key way? 69. 70. What is the difference between a common market and an economic union? 71. 72. The euro-zone is an example of what type of reginal trade agreement?73. What are they key challenges to forming an economic union. 74. 75. 76. Why form a Monetary Union? 77. 78. 79. List 2 criteria that make an economic region optimal to form a monetary union. 80. 81. Below is the market for corn in a small country. The world price of corn is 10 and is largely determined by supply and demand in the United States. The US congress decides that they want to increase subsidies to corn farmers. This causes US production to rise which lowers the world price to 9. SHADE on the graph how much consumer surplus changes and how much producer surplus changes. P 10 9 O82. Below is market for Wine in the Small Country of Slovenia. US supply/Price of wine is 5. French supply/Price of wine is 6. Before joining the EU Slovenia had placed a tariff of 2 on all wine imports. - 2 slovenia C d e f 9 French 6 supply h 5 US - Supply L m Oslov. 4 5 b 9 2 83. How much wine is consumed before joining the EU? 84. How much wine is consumed after joining the EU? 85. How much govt. revenue does the wine trade generate before joining the EU? 86. How much govt. revenue does the wine trade generate after joining the EU? 87. What is consumer surplus before joining the EU? 88. What is consumer surplus after joining the EU? 89. What is producer surplus before joining the EU? 90. What is producer surplus after joining the EU? 91. Does total welfare for Slovenia rise or fall? 92. What is the Change in total welfare or surplus