Exam 7: Government Policy and International Trade

Local content regulations provide protection for a domestic producer of parts by limiting foreign competition.

Tariff barriers lower the costs of exporting products to a country.

Paul Krugman suggests that strategic trade policy aimed at establishing domestic firms in a dominant position in a global industry is a beggar-thy-neighbor policy that:

Administrative trade policies are:

_____ a requirement that some specific fraction of a good be produced domestically.

The Great Depression had roots in the failure of the world economy to mount a sustained economic recovery after the end of World War I in 1918.

A(n) _____ helps domestic producers to compete against foreign imports.

The extra profit that producers make when supply is artificially limited by an import quota is referred to as a _____.

Strategic trade policy suggests that in industries where the existence of substantial scale economies implies that the world will profitably support only a few firms, countries may predominate in the export of certain products simply because they had firms that were able to:

Which of the following is one of the main instruments of trade policy?

_____ are the highest rate that can be charged, which is often, but not always, the rate that is charged.

Export tariffs are far less common than import tariffs.

Tariffs on industrial goods remain higher than tariffs on services.

The Netherlands exported tulip bulbs to almost every country in the world except Japan. This was because in Japan, customs inspectors insisted on checking every tulip bulb by cutting it vertically down the middle. This is an example of which of the following trade barriers?

The _____ raised tariff barriers in the hope of protecting jobs and diverting consumer demand away from foreign products.

Which of the following is a reason for the pressure for greater protectionism that occurred during the 1980s and early 1990s?

Antidumping policies are designed to punish foreign firms that are engaged in dumping.

After the Uruguay Round of GATT extended global trading rules to cover trade in services, the first two industries targeted for reform by the WTO were:

A key goal of the 1986 Uruguay Round was to:

Many firms, of all national origins, increasingly depend on _____ for their competitive advantage.