Exam 15: International Trade Policy

During the first 6 months of 2008, the United States imported from Africa, Asia, and Latin America more than 1.6 billion pounds of coffee and did not export any coffee. Based on this, we know definitively that

The winners from a tariff on imports are

In 2016 the U.S. government reduced the quantity of sugar that can be imported from other nations. This action ________ the price of sugar in the United States and ________ the quantity consumed in the United States.

Currently, the United States has a quota on the amount of sugar that is allowed to be imported into the United States. What would happen to the price of sugar in the United States if the quota was removed? What would happen to U.S. consumption and U.S. production of sugar?

Based on the table below, at what world price would the country export?

The United States imports cars from Japan. If the United States imposes a tariff on cars imported from Japan, American

Because wage rates are so low in Africa, why don't Microsoft, Cisco and other major corporations close down their American operations and move to Africa?

Which of the following is a valid reason for protecting an industry?

A country specializes in the production of goods for which it has a comparative advantage. We find that

Usually the imposition of trade barriers affecting a particular good benefits ________ people domestically, each of whom gains a ________.

In the domestic economy, imports ________ the price of the good and exports ________ the price of the good.

The figure shows the market for shirts in the United States, where D is the domestic demand curve and S is the domestic supply curve. The world price is $20 per shirt. -In the figure above, with international trade the United States ________ million shirts per year.

In 2006, European Union tariff on imported bananas from Latin America was €176 a ton. Suppose 2.5 million tons of bananas were imported in 2006 but then the tariff decreased to €152 a ton in 2007 and as a result, 3 million tons were imported in 2007. What is the tariff revenue in 2007?

Most economists would agree that "saving jobs" is a valid reason for restricting trade.

The Smoot-Hawley Act

How does the United States attempt to compensate losers from lower trade restrictions?

One reason that international trade is restricted is that

Average tariff levels in the United States in the last decade are

What is "rent seeking?" How does it apply to restricting imports?

The figure shows the market for shirts in the United States, where D is the domestic demand curve and S is the domestic supply curve. The world price is $20 per shirt. -In the figure above, with international trade ________ million shirts per year are produced in the United States.