Exam 7: Government Policy and International Trade

According to _____, some specific fraction of a good must be produced domestically.

By lowering production costs, _____ help domestic producers compete against foreign imports.

Discuss the economic reasons for government intervention in markets.

Governments do not always act in the national interest when they intervene in the economy; politically important interest groups often influence them.

What term refers to a situation in which a government does not attempt to restrict what its citizens can buy or sell to another country?

Until 1995, GATT rules applied only to:

Economic problems during the Great Depression were compounded in 1930 when the U.S. Congress passed the _____, aimed at avoiding rising unemployment by protecting domestic industries and diverting consumer demand away from foreign products.

The infant industry argument is criticized because it relies on an assumption that:

Which of the following observations about tariffs is true?

The WTO does not have the power to impose trade sanctions.

_____ is variously defined as selling goods in a foreign market at below their costs of production or as selling goods in a foreign market at below their "fair" market value.

Governments use _____ to boost exports and restrict imports.

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

_____ is a quota on trade imposed by the exporting country, typically at the request of the importing country's government.

The infant industry argument is the latest argument for government intervention in trade.

Explain the disadvantages of government protectionism as it relates to competitive advantage.

Which of the following acts allows Americans to sue foreign firms that use property in Cuba confiscated from them after the 1959 revolution?

According to the infant industry argument, many developing countries have a potential _____ in manufacturing, but new manufacturing industries cannot initially compete with established industries in developed countries.

What is the TRIPS agreement? Why was it established?

Explain the notion of predatory behavior with regard to dumping.