Exam 7: Global Markets in Action

A major purpose of tariffs is to

Rent seeking is one reason why countries choose to

When the United States imposes an import quota on a good, the amount of the ________ in U.S. consumer surplus is ________ the amount of the ________ in U.S. producer surplus.

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?

International trade is restricted because

Two arguments used to promote trade barriers are the infant-industry argument, and the dumping argument. Explain each of these arguments and evaluate whether each one has any flaws.

A tariff is a

In poorer countries, free trade ________ the demand for labor in these countries and ________ the wages paid in these countries.

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

Of the groups listed below, which is most likely to lobby for protection?

During the first 6 months of 2008, the European Union (EU) initiated an anti-dumping case against China for imports of taper candles. What is dumping?

Which of the following statements is TRUE?

The figure shows the market for shirts in the United States, where D is the U.S demand curve and S is the U.S. supply curve. The world price is $20 per shirt. The United States imposes a tariff on imported shirts, $4 per shirt. -In the figure above, the deadweight loss from the tariff is

During 2005-2006 Europe imported more than $70 million worth of U.S. long-grain rice. In 2006, the European Union threatened to restrict imports of long-grain rice because traces of genetically modified rice were found mixed in to commercial supplies. What would NOT be an effect in the European rice market if U.S. imports were banned?

As a result of an increase in tariffs, imports decrease and government revenue increases.

A tariff imposed by the United States on Japanese cars ________ the price of cars in the United States and ________ the quantity of Japanese cars imported into the United States.

Import quotas ________ the price of imported goods and ________ the quantity consumed in the nation imposing the quota.

The fundamental force that drives international trade is

The United States has a comparative advantage in producing cotton if the U.S. price of cotton before international trade is ________ the world price.

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