Exam 11: Pushing Exports

Assume that country A provides a subsidy on its exports to country B. Country B is about to impose a countervailing duty (of the same magnitude as the export subsidy) on the imports from country A. Which of the following statements is true in this context?

In 1992, the bilateral agreement of the U.S. with the European Union regarding the subsidies for production of civil aircraft included that:

The figure given below represents the U.S. market for steel imports from Korea. The Korean government provides an export subsidy of $25 per ton, and Korean firms use the subsidy to reduce their export price to the United States to $375 per ton. Suppose the United States now imposes a countervailing duty on its steel imports from Korea to offset the impact of the subsidy provided by the Korean government on its steel exports. Calculate the change in the national welfare of the U.S. due to the imposition of this duty.

The figure given below represents the U.S. market for steel imports from Korea. The Korean government provides an export subsidy of $25 per ton, and Korean firms use the subsidy to reduce their export price to the United States to $375 per ton. $0$ $\$ 400$ $\$ 375$ Suppose the United States now imposes a countervailing duty on the imports of steel at the rate of $25 per ton. Which of the following is true in this context?

It is generally the case that imposing a countervailing duty in response to a foreign export subsidy provides less well-being for a country than had the country not imposed the countervailing duty.

_____ occurs when a firm temporarily charges a low price in the foreign export market, with the purpose of driving its foreign competitors out of business.

The impact on world welfare of an export subsidy and a countervailing duty (of the same size as the subsidy) is:

Aggressive competition in the foreign market through exports by a domestic firm due to a protected home market is known as:

With free trade the United States imports about half of its steel consumption from Brazil. What would be the impact on the United States of an export subsidy on steel provided by the Brazilian government? Would it be beneficial for the U.S. if they impose an equal amount of countervailing duty on the import of steel? Why or why not?

The figure given below represents the domestic market for wheat in a small country. Imports of wheat are prohibited. The production effect of the subsidy amounts to:

The figure given below represents the domestic market for wheat in a small country. Imports of wheat are prohibited. The cost to the government of paying the subsidy is:

How can you define dumping? If the importing country suspects dumping, what action can be taken?

The figure given below represents the domestic market for wheat in a small country. Imports of wheat are prohibited. The consumption effect of the subsidy amounts to:

Which of the following subsidies is prohibited under WTO rules?

Which of the following statements about dumping is true?

An export subsidy imposed in a large exporting country will cause the country's international terms of trade to improve.

Which of the following is said to occur when a firm lowers its price in order to sell off excess inventories of a product?

The figure given below represents the domestic market for wheat in a small country. Imports of wheat are prohibited. The net loss in national well-being as a result of the subsidy is:

Which country had no antidumping cases until the early 1990s, but became a top initiator of antidumping cases for the time period 2005-2009?

The figure given below represents the domestic market for wheat in a small country. Imports of wheat are prohibited. Following the imposition of a $20 per bushel export subsidy to the country's wheat exports, the country consumed _____ bushels of wheat, and exported _____ bushels of wheat.