Exam 7: Government Policy and International Trade

Which of the following is a drawback of government intervention?

Strategic trade policy suggests that a government should use _____ to support promising firms that are active in newly emerging industries.

What happened to GATT during the 1980s and early 1990s?

Which of the following statements concerning a voluntary export restraint is true?

Foreign producers typically agree to voluntary export restrictions because:

_____ in agriculture could jump-start economic growth among the world's poorer nations and alleviate global poverty.

_____ is a direct restriction on the quantity of some good that may be imported into a country.

The TRIPS regulations established at the 1995 Uruguay Round:

Unlike other trade policies, local content regulations tend to benefit consumers and not producers.

Discuss the Buy America Act and its connection with local content requirements.

Protecting industries deemed important for national security, and retaliating against unfair foreign competition are economic arguments for intervention.

Discuss the establishment of GATT. What was GATT's objective?

Identify the true statement about trade barriers.

A common hybrid of a quota and a tariff is known as a(n):

WTO rules allow countries to _____ foreign goods that are being sold cheaper than at home, or below their cost of production, even when domestic producers can show that they are being harmed.

A quota rent is:

Antidumping actions are concentrated in certain sectors of the economy such as basic metal industries, chemicals, plastics, and machinery and electrical equipment.

Import tariffs:

One issue at the forefront of the current agenda of the WTO is the:

Human rights activists see WTO rules as outlawing the ability of nations to stop imports from countries where child labor is used or working conditions are hazardous.