Exam 6: Political Economy of Trade

Tariffs tend to exact a cost on countries as a whole because they lessen citizens' gains from trade.

Explain why governments impose restrictions on free trade.

Financial assistance given to domestic producers in the form of cash payments is an example of a(n)________.

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)________.

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. -The belief that Freeland's emerging industries need protection from international competition during their development phase is an example of ________.

Government trade promotion agencies ________.

Which of the following statements is true about cultural influences?

Which of the following is an instrument that governments use to promote trade?

Which of the following is the main cultural motive behind government intervention in trade?

________ refers to the unwanted cultural influence in a nation that can cause great distress and lead governments to block imports it believes to be harmful.

An additional tariff placed on an imported product that a nation believes is receiving an unfair subsidy is called a(n)________.

The pattern of imports and exports that would result in lesser trade barriers is called free trade.

Describe the role of special government agencies in promoting exports and imports.

Konesia Joins the World Konesia,a former totalitarian economy and pariah state,is taking steps toward a free market economy.The government wants to encourage trade but also wants to find a balance so that local businesses and industries are not harmed. -Konesia has created a hybrid form of trade restriction-a lower tariff rate for a certain quantity of imports and a higher rate for quantities that exceed the quota.This is an example of a(n)________.

Unwanted cultural influence in a nation can cause governments to block imports that it believes are harmful.

Consumers are benefitted when a government imposes import quotas on products.

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

A tariff levied by the government of a country that is selling goods abroad is called a(n)________.

Receiving financing from government agencies is often crucial to the success of small businesses just beginning to export.

Which of the following statements is true of tariffs?