Exam 5: Nontariff Trade Barriers

Export subsidies levied by foreign governments on products in which the United States has a comparative disadvantage:

The U.S.-Japaneses agreement in 1981 to limit imports of small Japanese cars to the U.S.

In certain industries,Japanese employers do not lay off workers.Therefore,they sometimes have excess supplies of goods that they cannot sell on the home market without lowering prices.To hold down losses,they sell goods in overseas markets at prices well beneath those in Japan.This practice is best referred to as:

The purpose of international dumping is to decrease a firm's costs and increase its profits,compared to what would be realized in the absence of dumping.

Figure 5.6 Domestice Supply and demand for Wine - US -Consider Figure 5.6.In the global market for wine,the EU is willing to supply as much wine as the US demands at $8 per bottle.IF the US imposes a quota of 15 bottles of wine,how much wine will US consumers demand,how much wine will US producers produce and how much wine will be imported?

A specification of a maximum amount of a foreign produced good that will be allowed to enter the country over a given time period is referred to as:

What are the intent and impact of domestic content requirements?

For the United States,the Buy American Act has tended to increase consumer surplus for U.S.buyers of protected merchandise.

Predatory dumping would occur if Toyota Inc.of Japan sells autos to U.S.consumers at lower prices than to Japanese consumers in order to put Chrysler Inc.out of business.

A removal of an import quota tends to result in

To maintain that South Koreans are dumping their VCRs in the United States is to maintain that:

Suppose the government grants a subsidy to its export firms that permits them to charge lower prices on goods sold abroad.The export revenue of these firms would rise if the foreign demand is:

A producer successfully practicing international dumping would charge:

Under U.S.antidumping law,an antidumping duty can be levied when the U.S.Commerce Department determines that a foreign product is being sold in the United States at less than fair value and the U.S.International Trade Commission determines that the dumped product is causing economic harm to domestic producers.

Figure 5.3 illustrates the apple market for Sweden,assumed to be a "small" country that is unable to affect the world price.SSweden is the domestic supply and DSweden is the domestic demand.SSweden+Quota is Sweden's supply schedule with an import quota. Figure 5.3.Sweden's Apple Market -Consider Figure 5.3.If SSweden+Quota represents the supply schedule after a quota is levied,Sweden's imports will equal:

Figure 5.1 illustrates the steel market for Mexico,assumed to be a "small" country that is unable to affect the world price.Suppose the world price of steel is given and constant at $200 per ton.Now suppose the Mexican steel industry is able to obtain trade protection. Figure 5.1.Alternative Nontariff Trade Barriers Levied by a "Small" Country -Referring to Figure 5.1,suppose the Mexican government imposes an import quota equal to 2 tons of steel.??If Mexican steel importers behave as monopoly buyers and foreign exporters behave as competitive sellers,the overall welfare loss of the quota to Mexico equals:

When voluntary export limits are imposed on the world's chief exporter

Is a tariff-rate quota a two-tier tariff? Why?

Suppose that Airbus sells jetliners in the United States at prices below fair value,to drive Boeing out of business and then become a monopoly.This conduct is known as

Import quotas tend to lead to all of the following except: