Question 1

If a country faces action under Section 301 of the U.S. Trade Act of 1974, it means that the country has

Accepted Answer

A)  exceeded average export growth by more than 50 percent. 
B)  tariffs that are above the legal limit. 
C)  been charged by the United States with systematically engaging in unfair trade practices. 
D)  been charged by the WTO with violating its trade obligations. 
A)  exceeded average export growth by more than 50 percent. 
B)  tariffs that are above the legal limit. 
C)  been charged by the United States with systematically engaging in unfair trade practices. 
D)  been charged by the WTO with violating its trade obligations.

Question 2

The most common form of tariff is a countervailing duty.

Accepted Answer

A) True 
 B)False

Question 3

Developed countries have lost comparative advantage in

Accepted Answer

A)  high-tech industries. 
B)  labor-intensive industries. 
C)  capital-intensive industries. 
D)  agricultural industries. 
A)  high-tech industries. 
B)  labor-intensive industries. 
C)  capital-intensive industries. 
D)  agricultural industries.

Question 4

A countervailing duty is a tariff that is levied to counteract

Accepted Answer

A)  the dumping of goods in the domestic market by foreign firms. 
B)  a sudden surge of imports which hurt a domestic industry. 
C)  subsidies given to foreign firms by their own governments. 
D)  low prices for imported goods that are made in countries with low wages. 
A)  the dumping of goods in the domestic market by foreign firms. 
B)  a sudden surge of imports which hurt a domestic industry. 
C)  subsidies given to foreign firms by their own governments. 
D)  low prices for imported goods that are made in countries with low wages.

Question 5

Which of the following is False?

Accepted Answer

A)  The analysis of agriculture, textiles, and clothing in the EU, the United States, and Japan supports the proposition that older sectors of the economy are most protected, particularly in cases where the nation has lost a substantial part of its comparative advantage. 
B)  Even when tariffs are relatively low, the cost per job saved tends to be high. 
C)  Commercial policy is grossly inefficient at achieving the objective of job preservation. 
D)  Trade barriers in high-income countries do not cause unintended consequences in low-income countries because most of their trade is with other industrialized countries. 
A)  The analysis of agriculture, textiles, and clothing in the EU, the United States, and Japan supports the proposition that older sectors of the economy are most protected, particularly in cases where the nation has lost a substantial part of its comparative advantage. 
B)  Even when tariffs are relatively low, the cost per job saved tends to be high. 
C)  Commercial policy is grossly inefficient at achieving the objective of job preservation. 
D)  Trade barriers in high-income countries do not cause unintended consequences in low-income countries because most of their trade is with other industrialized countries.

Question 6

Some economists suggest the optimal way for a nation to protect its access to a strategic mineral is with

Accepted Answer

A)  an infant industry tariff. 
B)  a high rate of effective protection to keep local mines in business. 
C)  a quota on imports of the mineral. 
D)  a stockpile. 
A)  an infant industry tariff. 
B)  a high rate of effective protection to keep local mines in business. 
C)  a quota on imports of the mineral. 
D)  a stockpile.

Question 7

Agriculture, clothing, and textiles are singled out for treatment in the chapter because

Accepted Answer

A)  they tend to be the most highly protected sectors of industrial economies. 
B)  they tend to be the most-protected sectors internationally. 
C)  the policies of high-income nations in these sectors may have beneficial effects in low-income countries. 
D)  they are more important to job creation than other sectors. 
A)  they tend to be the most highly protected sectors of industrial economies. 
B)  they tend to be the most-protected sectors internationally. 
C)  the policies of high-income nations in these sectors may have beneficial effects in low-income countries. 
D)  they are more important to job creation than other sectors.

Question 8

Describe the four legal procedures available to U.S. firms to seek protection from foreign competition. What circumstances would warrant a request under each? How frequently is each used? What would be the result if the firm won?

Accepted Answer

Countervailing duties are granted in res

Question 9

To be effective, infant industry protection requires

Accepted Answer

A)  a national security externality. 
B)  to be extended indefinitely. 
C)  to be fair to existing producers. 
D)  a technology externality. 
A)  a national security externality. 
B)  to be extended indefinitely. 
C)  to be fair to existing producers. 
D)  a technology externality.

Question 10

Choose one of the arguments countries generally use to justify protection for a particular industry. Describe the argument and any inherent problems with it. Is the argument primarily an economic or a noneconomic one?

Accepted Answer

The revenue argument says that for low i

Question 11

The more difficult the goal, the more likely military force is going to be needed to back up economic sanctions.

Accepted Answer

A) True 
 B)False

Question 12

In the global recession of 2007-2009, world trade declined because nations closed their markets to trading partners.

Accepted Answer

A) True 
 B)False

Question 13

It seems likely that economic sanctions ultimately would have led to regime change in Iraq.

Accepted Answer

A) True 
 B)False

Question 14

The WTO's Doha Development Agenda is only considering market access issues in agriculture, such as tariffs and quotas, because export subsidies and production subsidies are considered less harmful and have not been part of the GATT or WTO agenda.

Accepted Answer

A) True 
 B)False

Question 15

The pattern of protection in industrial countries is particularly harmful to the interests of

Accepted Answer

A)  low-income developing countries. 
B)  high-income industrial countries. 
C)  Asian nations. 
D)  European nations. 
A)  low-income developing countries. 
B)  high-income industrial countries. 
C)  Asian nations. 
D)  European nations.

Question 16

The average nonagricultural tariff in the U.S. is about

Accepted Answer

A)  3 percent. 
B)  5 percent. 
C)  9 percent. 
D)  15 percent. 
A)  3 percent. 
B)  5 percent. 
C)  9 percent. 
D)  15 percent.

Question 17

Countries like Argentina and Australia protect agriculture less heavily than other agricultural producers because

Accepted Answer

A)  they have a large comparative advantage in production. 
B)  it is illegal under WTO rules. 
C)  they do not have significant agricultural sectors. 
D)  they are trying to help other countries. 
A)  they have a large comparative advantage in production. 
B)  it is illegal under WTO rules. 
C)  they do not have significant agricultural sectors. 
D)  they are trying to help other countries.

Question 18

In the United States, which part of government investigates claims of subsidies or dumping?

Accepted Answer

The International Tr

Question 19

The biggest flaw in the logic of the labor argument is the failure to consider

Accepted Answer

A)  the needs of developing countries. 
B)  the impact of tariffs on inflation. 
C)  the differences in national productivity levels. 
D)  the impact on employment levels. 
A)  the needs of developing countries. 
B)  the impact of tariffs on inflation. 
C)  the differences in national productivity levels. 
D)  the impact on employment levels.

Question 20

At this point, potential gains from further tariff reductions worldwide are

Accepted Answer

A)  still very large. 
B)  equal to zero. 
C)  relatively small. 
D)  not worth the cost of negotiations. 
A)  still very large. 
B)  equal to zero. 
C)  relatively small. 
D)  not worth the cost of negotiations.

If a country faces action under Section 301 of the U.S. Trade Act of 1974, it means that the country has

The most common form of tariff is a countervailing duty.

Developed countries have lost comparative advantage in

A countervailing duty is a tariff that is levied to counteract

Which of the following is False?

Some economists suggest the optimal way for a nation to protect its access to a strategic mineral is with

Agriculture, clothing, and textiles are singled out for treatment in the chapter because

Describe the four legal procedures available to U.S. firms to seek protection from foreign competition. What circumstances would warrant a request under each? How frequently is each used? What would be the result if the firm won?

To be effective, infant industry protection requires

Choose one of the arguments countries generally use to justify protection for a particular industry. Describe the argument and any inherent problems with it. Is the argument primarily an economic or a noneconomic one?

The more difficult the goal, the more likely military force is going to be needed to back up economic sanctions.

In the global recession of 2007-2009, world trade declined because nations closed their markets to trading partners.

It seems likely that economic sanctions ultimately would have led to regime change in Iraq.

The WTO's Doha Development Agenda is only considering market access issues in agriculture, such as tariffs and quotas, because export subsidies and production subsidies are considered less harmful and have not been part of the GATT or WTO agenda.

The pattern of protection in industrial countries is particularly harmful to the interests of

The average nonagricultural tariff in the U.S. is about

Countries like Argentina and Australia protect agriculture less heavily than other agricultural producers because

In the United States, which part of government investigates claims of subsidies or dumping?

The biggest flaw in the logic of the labor argument is the failure to consider

At this point, potential gains from further tariff reductions worldwide are

The United States in a Global Economy

International Economic Institutions Since World War II

Comparative Advantage and the Gains From Trade

Comparative Advantage and Factor Endowments

Beyond Comparative Advantage

The Theory of Tariffs and Quotas

International Trade and Labor and Environmental Standards

Trade and the Balance of Payments

Exchange Rates and Exchange Rate Systems

An Introduction to Open Economy Macroeconomics

International Financial Crises

The United States in the World Economy

The European Union: Many Markets Into One

Trade and Policy Reform in Latin America

Export-Oriented Growth in East Asia

China and India in the World Economy

Filters

Exam 7: Commercial Policy

If a country faces action under Section 301 of the U.S. Trade Act of 1974, it means that the country has

The most common form of tariff is a countervailing duty.

Developed countries have lost comparative advantage in

A countervailing duty is a tariff that is levied to counteract

Which of the following is False?

Some economists suggest the optimal way for a nation to protect its access to a strategic mineral is with

Agriculture, clothing, and textiles are singled out for treatment in the chapter because

Describe the four legal procedures available to U.S. firms to seek protection from foreign competition. What circumstances would warrant a request under each? How frequently is each used? What would be the result if the firm won?

To be effective, infant industry protection requires

Choose one of the arguments countries generally use to justify protection for a particular industry. Describe the argument and any inherent problems with it. Is the argument primarily an economic or a noneconomic one?

The more difficult the goal, the more likely military force is going to be needed to back up economic sanctions.

In the global recession of 2007-2009, world trade declined because nations closed their markets to trading partners.

It seems likely that economic sanctions ultimately would have led to regime change in Iraq.

The WTO's Doha Development Agenda is only considering market access issues in agriculture, such as tariffs and quotas, because export subsidies and production subsidies are considered less harmful and have not been part of the GATT or WTO agenda.

The pattern of protection in industrial countries is particularly harmful to the interests of

The average nonagricultural tariff in the U.S. is about

Countries like Argentina and Australia protect agriculture less heavily than other agricultural producers because

In the United States, which part of government investigates claims of subsidies or dumping?

The biggest flaw in the logic of the labor argument is the failure to consider

At this point, potential gains from further tariff reductions worldwide are

The United States in a Global Economy

International Economic Institutions Since World War II

Comparative Advantage and the Gains From Trade

Comparative Advantage and Factor Endowments

Beyond Comparative Advantage

The Theory of Tariffs and Quotas

International Trade and Labor and Environmental Standards

Trade and the Balance of Payments

Exchange Rates and Exchange Rate Systems

An Introduction to Open Economy Macroeconomics

International Financial Crises

The United States in the World Economy

The European Union: Many Markets Into One

Trade and Policy Reform in Latin America

Export-Oriented Growth in East Asia

China and India in the World Economy

Filters