Exam 6: Political Economy of Trade

A(n)________ imposes a low tariff rate on a limited amount of imports of a specified good,but imposes a prohibitively high tariff on the good above that limited amount.

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

Which of the following is prompting farmers in many developed nations to discover new ways to manage risk and increase agricultural efficiency?

Describe each instrument that governments use to promote trade.

Which of the following do products designated as dual use require before exports can take place?

A voluntary export restraint refers to a quota that a nation imposes on its exports,usually at the request of another nation.

Rice imports to a nation under a quota limit of 8,500 tons are charged a tariff of 15 percent.Imports of rice above the quota limit are charged a tariff of 60 percent.This is an example of a(n)________.

The major purpose of foreign trade zones is to implement barriers to trade and commerce.

Tariffs tend to exact a cost on countries as a whole because they reduce consumer choices.

The ________ altered the U.S.trade policy from a stance of free trade to one of protectionism in the 1930s.

Which of the following statements is true of embargoes?

________ can occur when a firm sells its goods in a foreign market at a price below what it charges in its home market.

The Uruguay Round of Negotiations created the TRIPS Agreement to ________.

A(n)________ tariff (or duty)is levied as a particular fee for each unit of an imported product.

Scenario: Not-So-Free Freeland Freeland is a semi-closed economy whose government believes in protecting national identity and building a self-sustained economy. The government's priority is to protect local jobs and provide opportunities to Freeland's emerging industries to flourish without the threat of external competition. -Which of the following motives illustrates Freeland's efforts to protect local jobs?

________ can occur when a firm sells its goods in a foreign market at a price below what it charges in its home market.

Which of the following is a result of the protection of domestic companies from international competition?

Free trade ________.

A ________ is a numerical limit on the quantity of a good that may be imported into a country during some time period.

Scenario: Not-So-Free Freeland Freeland is a semi-closed economy whose government believes in protecting national identity and building a self-sustained economy. The government's priority is to protect local jobs and provide opportunities to Freeland's emerging industries to flourish without the threat of external competition. -Freeland's efforts to provide opportunities to its emerging industries is an example of its ________.