False. Industrial policy should develop the industry of the country with exist comparative advantages. If there are no comparative advantages in the industry, it could be describe as an inefficient industries and the industrial policy is useless. However, it can't be judge what industry is inefficient before successfully develop in the market. Industrial policy protects all the specific or general industries the country wants to develop.

GDP=C+I+G+(X-M). Export and import relate to the trade pattern. The growth of GDP due to increasing of X and rising price, it can enlarge the consumption and increase the M. But the trade pattern is different as increase in GDP per capita. It means people have money to consume better quality product that leads to increasing in foreign M. Or the quality of domestic product increase that leads to lower X.

True. As the world price increase in importing country, consumer would likely to pay more on domestic product that leads to falling in import. The relevant current account balance is the value of good and services export minus import. Assume the export unchanged, as the result of decreasing import, the current account balance will improve.

The high-income countries shouldn’t erect or maintain trade barriers. It could be reflect in reasons: i) as the import from low-wage country being against, one of the revenue from tax added on import product to the government will cut down. ii) the unemployment amount go up, the import-related industry such as port can’t have sufficient labor. It can result in the increase of cost. iii) under the trade barriers, the competitive will getting lower that leads to decrease in export. iv) with the lower import, the trading partner’s income decrease followed by decline in import. However, the consumers and tax payers are losers.

Under the globalization, the increasing world trade leads to the