According to Rodrik, those who view global integration as the prerequisite for economic development respond to the disappointing outcome of deep liberalization by suggesting that
a. getting benefits from openness requires a full complement of institutional reforms.
b. full openness is never the goal but must be tempered with some tariffs and quotas to protect domestic industry.
c. the growth resulting from deep liberalization still outstrips the growth that would result from any other model.
d. developing countries will achieve growth from trade liberalization at a slower rate than that of developing countries.
e. true openness has not yet been achieved; all tariffs and quotas and barriers to trade must be eliminated to see the kinds of returns promised by liberal economic theory.
Question 2
According to Wade, which of the following was a weakness in the globalization modelwhich now may need rethinkingthat helped cause the crisis?
a. It placed too much emphasis on creating regional and domestic demand.
b. It overemphasized the demand side of the economy, pushing capital accumulation.
c. It overemphasized the supply side of the economyto the detriment of the demand side.
d. It overemphasized the demand side of the economyto the detriment of the supply side.
e. It de-emphasized the need for capital accumulation and thus left banks in a liquidity crisis.
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