Exam 7: Global Markets in Action

Tariffs ________ consumer surplus and import quotas ________ consumer surplus.

The United States has a comparative advantage in producing cotton if the U.S. price of cotton before international trade is ________ the world price

How does an import quota affect the domestic price of the import, the domestic consumption, the domestic production, and the quantity imported?

Define comparative advantage and discuss its role in international trade.

The figure shows the market for helicopters in the United States, where D is the domestic demand curve and S is the domestic supply curve. The United States trades helicopters with the rest of the world at a price of $36 million per helicopter. -In the figure above, international trade ________ producer surplus in the United States by ________.

Import quotas ________ the price of imported goods and ________ the quantity consumed in the nation imposing the quota.

Rent seeking is one reason why countries choose to

One reason that international trade is restricted is that

A country opens up to trade and becomes an exporter of wheat. In the wheat market, consumer surplus will ________, producer surplus will ________, and total surplus will ________.

Hiring foreign labor and producing in other countries is an example of offshoring.

Import quotas are less damaging to an economy than are tariffs.

The winners from a Japanese tariff on imported cars are I. Japanese car producers. II) Japanese car consumers. III) the Japanese government.

The figure shows the market for shirts in the United States, where D is the U.S demand curve and S is the U.S. supply curve. The world price is $20 per shirt. The United States imposes a tariff on imported shirts, $4 per shirt. -In the figure above, the tariff ________ U.S. imports of shirts by ________ million shirts per year.

Agriculture Secretary Ed Schafer today announced that Chile's Livestock and Agricultural Service approved the U.S. inspection, control and certification systems for poultry, allowing these products to enter the Chilean market effective immediately. The effect of this change in Chilean policy in the Chilean poultry market is to

When NAFTA was approved, Congress attempted to soften the losses suffered by some industries by

When a firms "dumps" some of its products in another country, it

A tariff is a tax that is imposed by the ________ country when an ________ good crosses its international boundary.

An import quota protects domestic producers by

The gains from free trade are enjoyed by a ________ number of people and the costs of free trade are imposed by ________ number of people.

Some people assert that protection from foreign competition prevents rich countries from exploiting developing countries. What is this argument in more detail and what is its flaw?