Which of the following is an argument put forward by Rodrik regarding the significance of national borders?
a. National borders do not impose significant transaction costs on trade.
b. Protectionism across borders imposes no significant transactions costs to trade.
c. Differences in currencies, legal systems, and social networks do not present a barrier to trade across borders.
d. Large gains in trade liberalization require reaching behind borders to harmonize national standards and regulations.
Question 2
According to Rodrik, which of the following strategies should trade ministers employ to expand trade for individual nations?
a. take steps to ensure the banking system in a country is better regulated
b. use international pressure to reduce financial corruption between nation-states
c. use access to foreign markets to encourage an export-oriented growth strategy
d. create the domestic space needed to protect social programs and regulations, renew domestic social contracts, and pursue locally tailored growth policies
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