Exam 9: Formulation of National Trade Policies

According to the national defense argument, government protection of specific industries may be necessary to ensure a country's self-sufficiency in critical raw materials, machinery, and technology.

What are the two different forms of dumping? What factors should be considered when determining whether or not dumping has occurred?

Free trade implies that government exerts minimal influence on the exporting and importing decisions of private firms and individuals.

A(n) ________ is an absolute ban on the exporting and importing of goods to a particular destination.

________ suggests that a national government can make its country better off if it adopts trade policies that improve the competitiveness of its domestic firms in oligopolistic industries.

How does a tariff rate quota work?

A transit tariff is a tax placed on a good that is traded internationally, and are levied on goods as they leave the country or as they pass through one country bound for another.

Which of the following is an import tariff?

Country X wants to stimulate exports. Which of the following would most likely help Country X achieve this goal?

Industrial policy assists a country's firms in capturing large shares of important, growing global markets

Exports generate domestic jobs.

When Japanese products are priced higher in retail stores in the United States than in Japan, this is evidence of dumping.

The U.S. government has decided to impose a tariff rate quota on sugar imports into the United States. Which of the following would benefit the most from this decision?

Why did Japanese auto makers accept the voluntary export restraint program that limited the number of cars that could be exported to the United States in the early 1980s? What role has domestic politics played in Toyota's U.S. strategy?

A(n) ________ imposes a low tariff rate on a limited amount of imports of a specified good, but imposes a prohibitively high tariff on the good above that limited amount.

________ is a term used to denote 17 different minerals that are critical for the production of high-tech products.

Strategic trade theory applies best to which industry identified below?

What is the Eximbank? What is its purpose?

________ make it more difficult for importers of nonessential goods to acquire foreign exchange.

Retail prices are irrelevant in determining whether dumping has occurred.