Trade Theory Suggests That Japan Would Gain from a Subsidy

question 44

Multiple Choice

Trade theory suggests that Japan would gain from a subsidy the United States provides its grain farmers if the gains to Japanese consumers of wheat products more than offsets the losses to Japanese wheat farmers. This would occur as long as Japan

• A) is a net importer in bilateral trade flows with the United States.
• B) is a net importer of wheat.
• C) has a comparative advantage in wheat.
• D) has an absolute advantage in producing wheat.
• E) is involved in intra-industry trade with the United States.

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Definitions:

Stereotype

Oversimplified generalizations about a group or category of people that often neglect individual diversity and complexity.

Discrimination

The unjust or prejudicial treatment of individuals based on their membership in a particular group or category, such as race, age, or gender.

Unequal Treatment

The act of treating someone or a group of people less favorably than others without a reasonable justification, often based on factors such as race, gender, age, or ethnicity.

Aversive Racism

A form of racism that manifests in subtle, often unconsciously held negative feelings or beliefs about people of other races despite conscious support for equality and justice.