Exam 20: Globalization and Protectionism

A rule that every imported product must be opened by hand and inspected with a magnifying glass, by one of just three government inspectors available at any given time might be referred to as _______.

After the USA introduces a tariff in the market for gigastraps, the price of gigastraps in the USA will:

There are nontariff barriers in the form of _______regulations, in which certain textiles are made in the United States, shipped to other countries, combined in making apparel with textiles made in those other countries-and then re-exported back to the United States at a lower tariff rate.

Which of the following is not a short-run impact of imposing quotas on the American industries they seek to protect?

Suppose the government of Taiwan subsidized its watch-making industry, enabling Taiwanese producers to undersell foreign watch producers. The law of comparative advantage indicates that watch-importing nations would best take advantage of the Taiwanese subsidization policy by:

"Tariffs and other trade restrictions increase the domestic scarcity of products from abroad. Such policies benefit domestic producers of the restricted products at the expense of domestic consumers." This statement:

"The Unsafe consumer Products Argument" is one argument for shutting out certain imported products to domestic markets is that they are unsafe for consumers. What is the World Trade Organization's position regarding this argument?

What are the effects of a tariff, and who benefits and who loses when tariffs are imposed? What are the effects of a quota, and who benefits and who loses when quotas are imposed?

The infant industry argument for protectionism suggests that an industry must be protected in the early stages of its development so that:

Which of the following is the best example of a tariff?

During the second half of the twentieth century, trade barriers have in general:

Why would foreign firms export a product at less than its cost of production-which Presumably means making a loss?

Raising an existing tariff on grapes from Argentina will:

A new American import quota on imported steel would be likely to:

Introducing a tariff on vitamin Z would:

Why would foreign firms export a product at less than its cost of production-which presumably means making a loss? This question has two possible answers, discuss both of them.

As international trade increases, it contributes to a shift in jobs away from industries where that economy does not have a(n) _______ advantage and toward industries where it has a(n) _______ Advantage.

In the national interest argument. It is sometimes argued that nation should not depend too heavily on other countries for supplies of certain key products. This argument has been made for commodities that are important to the U.S. economy as a whole, like oil. Discuss some arguments economists may raise against this.

In theory, imports might injure workers in several different ways: fewer jobs, lower wages, or poor working conditions. Provide a counterpoint for each and describe.

Import tariffs generally _______ the output of domestic producers of the affected products and also _______ the output of domestic exporters.