Article Summary According to JP Morgan Chase, Increased Shipments of Chinese Steel

question 142

Multiple Choice

Article Summary
According to JP Morgan Chase, increased shipments of Chinese steel over the past two years has generated a wave of protectionism from countries around the globe. Decreasing domestic demand and slower economic growth have resulted in a large increase in steel exports from China, driving down global prices. The almost doubling of Chinese steel exports since 2013 has steel mills in areas ranging from South Africa to Europe to India to the United States pushing their governments for protectionist measures against the Chinese-produced steel.
Source: Jasmine Ng, " JPMorgan Says `Waves of Protectionism' Will Cap China Steel," Bloomberg.com, October 4, 2015.
-Refer to the Article Summary above.All else equal, if countries decide to enact protectionist measures against Chinese steel imports, the price of steel in those countries will ________ and the quantity of steel demanded in those countries will ________.

• A)increase; increase
• B)increase; decrease
• C)decrease; increase
• D)decrease; decrease

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Definitions:

Conditional Contracts

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Equity Theory

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Comparison Person

An individual used as a reference point in social comparison processes, influencing one's self-evaluation, feelings, and behaviors.

Inequity

A condition stemming from unfair, unjust treatment or disparities among individuals or groups, often in terms of resources, rights, or opportunities.