Exam 15: International Trade Policy

The figure shows the market for shirts in the United States, where D is the domestic demand curve and S is the domestic supply curve. The world price is $20 per shirt. -In the figure above, with international trade the United States ________ million shirts per year.

Why do nations engage in international trade?

Agriculture Secretary Ed Schafer today announced that Chile's Livestock and Agricultural Service approved the U.S. inspection, control and certification systems for poultry, allowing these products to enter the Chilean market effective immediately. What is NOT an effect of this change in Chilean policy on the Chilean poultry market?

During 2005-2006 Europe imported more than $70 million worth of U.S. long-grain rice. In 2006, the European Union threatened to restrict imports of long-grain rice because traces of genetically modified rice were found mixed in to commercial supplies. What would NOT be an effect in the European rice market if U.S. imports were banned?

Tariffs and import quotas differ in that

Compared to the situation before international trade, after the United States exports a good , then production in the United States ________ and consumption in the United States ________.

In 2013 the United States reduced the tariff on ethanol. This tariff reduction ________ the U.S. production of ethanol and ________ the total U.S. consumption of ethanol.

A tax that is imposed by the importing country when an imported good crosses its international boundary is called

The figure shows the market for shirts in the United States, where D is the domestic demand curve and S is the domestic supply curve. The world price is $20 per shirt. The United States imposes a tariff on imported shirts, $4 per shirt. -In the figure above, the tariff ________ U.S. imports of shirts by ________ million shirts per year.

A tariff

The figure shows the market for shirts in the United States, where D is the domestic demand curve and S is the domestic supply curve. The world price is $20 per shirt. -In the figure above, with international trade Americans buy ________ million shirts per year.

An import quota is

In 2006, the European Union (EU)threatened to ban imports of long-grain rice because traces of genetically modified rice were found mixed in to commercial supplies. Instead of a complete ban, suppose the EU placed a tariff on the import of long-grain rice. Which of the following would be an outcome of this tariff?

Based on the table below, at what world price would the country export?

What is "rent seeking?" How does it apply to restricting imports?

Currently, the United States has a quota on the amount of sugar that is allowed to be imported into the United States. What would happen to the price of sugar in the United States if the quota was removed? What would happen to U.S. consumption and U.S. production of sugar?

In 2006, European Union tariff on imported bananas from Latin America was €176 a ton. Suppose 2.5 million tons of bananas were imported in 2006 but then the tariff decreased to €152 a ton in 2007 and as a result, 3 million tons were imported in 2007. What is the tariff revenue in 2007?

International trade is restricted because

When a rich nation buys a product made in a poor nation, in the poor nation the demand for labor ________ and the wage rate ________.

Quotas are less damaging to an economy than are tariffs.