Exam 9: Formulation of National Trade Policies

What is the infant industry argument? How did Japan use the infant industry argument to rebuild its economic strength following World War II? What tools did it use?

Country X protects its domestic manufacturers from foreign competition by using a variety of nontariff barriers. Which of the following is not one of those nontariff barriers?

Subsidies reduce the cost of doing business.

What is the difference between an ad valorem tariff, specific tariff, and compound tariff? What is a countervailing duty and its purpose?

How does the United States handle complaints of unfair trade?

Which of the following would most likely be used as a subsidy to entice firms to locate or expand facilities in a particular community?

What type of tariff is assessed as a specific dollar amount per unit of weight or other standard measure?

The South Korean government patterned its economic development strategies after the Japanese model.

The "level playing field" argument is primarily used to justify government policies that ________.

Which of the following is an example of a nontariff barrier that restricts access to distribution networks?

A country's adoption of strategic trade policies to cover a broad group of industries can actually reduce the country's overall international competitiveness because favoring certain industries inevitably hurts others.

Products manufactured in Brazil are transported through Mexico on their way to England. Mexico applies a tariff on the goods. What type of tariff is implemented by Mexico?

A foreign trade zone is primarily used by governments to ________.

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 from this decision?

Country X imposes a low tariff rate for the first 5,000 pounds of rice it imports from Japan and a high tariff rate on all imported rice above this threshold. Country X most likely uses a ________.

A quota is a numerical limit on the quantity of a good that can be imported.

How is a countervailing duty determined?

A(n) ________ is calculated to offset the advantage an exporter receives from a subsidy.

________ suggests that a country should encourage firms to compete in foreign markets by harnessing some advantage the country possesses.

What is the national defense argument for protectionism?