Chapter 8

Global Trade Relations 

Quizzes 

Test your knowledge with the Chapter 8 quiz! 

Question 1

Which of the following are key propositions under the Stolper-Samuelson theory in regard to factors and trade?

There is no effect on prices

abundant factors will see prices rise

abundant factors will see prices fall

abundant factors will diminish

None

Question 2

Dumping occurs when a country:

sells products in another market at prices below its own domestic market

sells products in another market at prices above its own domestic market

sells products in another market in a discriminatory fashion

sells products in another market at a subsidized price

None

Question 3

Which of the following are concerns that the West has with Chinese approaches to trade?

subsidization of exports

targeted financial subsidies

protection of domestic industries

all of the above

None

Question 5

A is a tax on imports.

Question 6

The Most Favoured Nation principle applies the norm of in regard to trade relations.

Question 4

cost, according to Ricardo’s theory of comparative advantage, is the choice between making one product or another.

Question 7

The S in GATS stands for .

Question 8

The Heckscher-Ohlin theory suggests that comparative advantage can be created.

TRUE

FALSE

None

Question 9

Strategic trade theorists believe in laissez-fair approaches to economic management.

TRUE

FALSE

None

Question 10

Under the GATT, members are allowed to raise tariffs on a temporary basis under certain circumstances.

TRUE

FALSE

None

Time’s up

Watch, Listen, Read, and Explore 

This content includes videos, podcasts, articles, readings, and other resources to help you understand and explore the content covered in the chapter. Most readings are freely available, although anything marked with an asterisk may require institutional log-in (e.g., through your university). Freely available data sources are also included to explore and further research. 

Videos 

• See Lecture Videos
• Guy Pascale, absolute vs. comparative advantage: https://www.youtube.com/watch?v=wLtQZXrLj8I  
• Hecksscher-Ohlin Theory & Leonteif Paradox explained, video by International Business Studies: https://www.youtube.com/watch?v=bpKACOG_t_Q 
• CBC, The Fifth Estate, Made in Bangladesh: 10 years after the deadly Rana Plaza collapse: https://www.youtube.com/watch?v=fZS8fb4AkPs  

Podcasts 

• Global Trade Review podcasts: https://www.gtreview.com/podcasts/  
• WTO podcasts: https://www.wto.org/english/res_e/webcas_e/podcasting_e.htm  
• Clingendael global trade series, podcasts: https://www.clingendael.org/publication/podcasts-global-trade-series-2022  
• Peterson Institute for Intl. Economics, trade podcasts: https://www.piie.com/experts/podcasts/trade-talks  

Readings 

• BBC, A timeline of global trade, https://www.bbc.com/future/bespoke/made-on-earth/a-timeline-of-global-trade/  
• Trade and Globalization (Ortiz-Ospina, Beltekian, and Roser): https://ourworldindata.org/trade-and-globalization  
• WTO, history of the multilateral trading system: https://www.wto.org/english/thewto_e/history_e/history_e.htm  
• Comparative advantage (Lauren Landsburg, Econlib): https://www.econlib.org/library/Topics/Details/comparativeadvantage.html  
• Stolper-Samuelson theory, brief explanation (Encyclopedia.com): https://www.encyclopedia.com/history/news-wires-white-papers-and-books/stolper-samuelson-theorem  
• Council on Foreign Relations, What’s next for the WTO? https://www.cfr.org/backgrounder/whats-next-wto  
• “The Not-So-Hidden Ethical Cost of Fast Fashion: Sneaky Sweatshops In Our Own Backyard (Syama Bunten, Forbes, 2020): https://www.forbes.com/sites/syamameagher/2020/02/05/the-not-so-hidden-ethical-cost-of-fast-fashion-sneaky-sweatshops-in-our-own-backyard/  
• Carnegie Endowment for International Peace, US-China Trade War, (Yukon Huang, 2021): https://carnegieendowment.org/posts/2021/09/the-us-china-trade-war-has-become-a-cold-war?lang=en  

Selected Sources of Free Data 

• WTO Statistics, https://stats.wto.org/en  
• WTO disputes by industry: https://www.wto.org/english/tratop_e/dispu_e/dispu_subjects_index_e.htm  
• ILO statistics, https://ilostat.ilo.org/  
• UNCTAD statistics, https://unctadstat.unctad.org/datacentre/  
• OAS, Foreign Trade Information System, http://www.sice.oas.org/  
• Globe of Economic Complexity, Harvard U., interactive trade and GVC website, http://globe.cid.harvard.edu/