Exam 5: Nontariff Trade Barriers

Figure 5.5 illustrates the television market for Mexico,assumed to be a small country that is unable to affect the world price.SMexico is the domestic supply schedule and DMexico is the domestic demand schedule.Suppose that Japan can supply televisions to Mexico at a price of $100 per set. Figure 5.5.Mexico's Television Market -Consider Figure 5.5.The Japanese export quota's revenue effect totals $1200.

In the early 1980s,the Japanese government limited shipments of Japanese automobiles to the United States.This limitation was known as

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.At the free-trade price of $0.60 per pound,Sweden's consumer surplus totals $____ and producer surplus totals $____.

The imposition of a domestic content requirement by the United States would cause consumer surplus for Americans to:

During the 1980s,the U.S.government imposed sugar import quotas in an attempt to reduce its costs of maintaining price supports for U.S.sugar growers.

If Canada was to levy a quota on chocolate imported from Denmark

Figure 5.4 illustrates the calculator market for Venezuela,assumed to be a "small" country that is unable to affect the world price.SVenezuela is the domestic supply schedule and DVenezuela is the domestic demand schedule. Figure 5.4.Venezuelan Calculator Market -Consider Figure 5.4.The cost of the production subsidy to the Venezuelan government totals:

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 -Consider Figure 5.1.Suppose the Mexican government provides a subsidy of $200 per ton to its steel producers,as indicated by the supply schedule SM (with subsidy).??As a result of the subsidy Mexican steel producers gain ____ of producer surplus.

For most nations,the ratio of imports to total purchases in the public sector is much higher than in the private sector.

Figure 5.4 illustrates the calculator market for Venezuela,assumed to be a "small" country that is unable to affect the world price.SVenezuela is the domestic supply schedule and DVenezuela is the domestic demand schedule. Figure 5.4.Venezuelan Calculator Market -Consider Figure 5.4.Suppose the rest of the world supplies calculators to Venezuela at a price of $4 each.With free trade,Venezuelan imports total:

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 the Mexican government auctions import licenses to the highest foreign bidder,the overall welfare loss of the quota to Mexico equals:

A global import quota permits a specified number of goods to be imported each year,but does not specify where the product is shipped from and who is permitted to import.

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.The quota's revenue effect equals:

Anti-dumping law has been called unfair for all of the following reasons EXCEPT:

Figure 5.4 illustrates the calculator market for Venezuela,assumed to be a "small" country that is unable to affect the world price.SVenezuela is the domestic supply schedule and DVenezuela is the domestic demand schedule. Figure 5.4.Venezuelan Calculator Market -Consider Figure 5.4.Assume the Venezuelan government grants its manufacturers a production subsidy of $4 per calculator.After the subsidy is granted,Venezuelan imports total:

Although the Tokyo Round of international trade negotiations reduced the Buy-American restrictions of the U.S.government,many state governments have maintained restrictive Buy-American policies.

Nontariff trade barriers include all of the following except

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.Assume that Swedish import companies behave as a monopoly buyer while foreign export companies behave as competitive sellers.Compared to free trade,Sweden's import quota results in domestic welfare:

Empirical studies show that because voluntary export quotas are typically administered by exporting countries,foreign exporters tend to:

If the home country's government grants a subsidy on a domestically produced good,domestic producers tend to: