What kind of progress was made by developing countries to break into world markets for their exports of manufactures?
What will be an ideal response?
POSSIBLE RESPONSE: Developing countries have become locations for low-cost assembly of more technologically advanced products like computers. Furthermore, developing countries have become exporters in standardized manufacturing lines such as apparel where technological progress has cooled down. Barriers against imports of manufactures from developing countries were not all that solid. Newcomers can gain market access for new manufactured product exports because they are not restricted by country-specific barriers such as voluntary export restraints and antidumping duties.
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What is the formula for the government budget deficit? Why might it be appropriate for most governments, most of the time, to have a deficit (rather than surplus)?
What will be an ideal response?
In spite of the fact that unemployment rates were at a 30-year low in 1996-2000 . the United States economy also experienced
a. declining inflation. b. balance of payments surpluses. c. large budget deficits. d. low growth.