Exam 9: Formulation of National Trade Policies

What type of tariff is assessed as a specific dollar amount per unit of weight or other standard measure?

According to international trade law, countries can implement safeguard clauses to impose temporary tariffs and quotas.

What is the primary difference between fair trade and free trade? Which do you think is more appropriate for the U.S.? Why?

A(n) ________ is a tax placed on a good that is traded internationally.

What type of tariff is assessed as a percentage of the market value of the imported good?

A(n) ________ is an absolute ban on the exporting and importing of goods to a particular destination.

Managed trade is another term for free trade.

A ________ refers to any factory located in an FTZ in Mexico.

Country X protects its domestic manufacturers from foreign competition by using a variety of nontariff barriers. Which of the following is NOT one of those nontariff barriers?

________ suggests that a national government can make its country better off if it adopts trade policies that improve the competitiveness of its domestic firms in oligopolistic industries.

Tariffs and quotas are more difficult to eliminate than non-tariff barriers.

Which type of trade policy did Adam Smith support?

Which of the following is not an example of regulatory controls as a form of nontariff barrier?

Classical theories of trade assume that firms operate in perfectly competitive markets.

Public-sector procurement policies are common in Country X. Which of the following is the most likely characteristic of Country X?

Subsidies reduce the cost of doing business.

Why do governments impose tariffs?

Why did Japanese auto makers accept the voluntary export restraint program that limited the number of cars that could be exported to the United States in the early 1980s? What role has domestic politics played in Toyota's U.S. strategy?

Which of the following would LEAST likely be used as a subsidy to entice firms to locate or expand facilities in a particular community?

Country X imposes a low tariff rate for the first 5,000 pounds of rice it imports from Japan and a high tariff rate on all imported rice above this threshold. Country X most likely uses a ________.