Question 1

According to the fast-track provision of U.S.trade law, once the president has completed trade negotiations, their outcome is subject to a vote (without amendment) in Congress within 90 legislative days of submission.

Accepted Answer

A) True 
 B)False

Question 2

An antidumping duty levied on imports of foreign-produced steel leads to an increase in consumer surplus in the home country.

Accepted Answer

A) True 
 B)False

Question 3

The World Trade Organization primarily involves bilateral trade negotiations between two countries, say, the United States and China.

Accepted Answer

A) True 
 B)False

Question 4

During the 1780s-1790s, the largest source of revenue for the U.S.government came from

Accepted Answer

A)  the personal income tax. 
B)  the corporate income tax. 
C)  the social security tax. 
D)  import tariffs.

Question 5

______________ generally result(s) in greater economic pressure on the target nation.

Accepted Answer

A)  Unilateral sanctions 
B)  Multilateral sanctions 
C)  International ostracism 
D)  Financial sanctions

Question 6

The primary objective of the World Trade Organization is to

Accepted Answer

A)  maximize tariff revenue for developing-country governments. 
B)  promote bilateral trade negotiations among nations. 
C)  liberalize international trade among member countries. 
D)  increase the protection of firms and workers against foreign competition.

Question 7

Compared with other displaced workers, ______________ workers tend to face ______________ adjustment costs as they must endure longer ______________ spells and larger wage losses once reemployed.

Accepted Answer

A)  trade-displaced, higher, unemployment 
B)  unemployed, higher, nonproductive 
C)  trade-displaced, lower, unemployment 
D)  unemployed, lower, nonproductive

Question 8

Which is one type of trade liberalization favored by the World Trade Organization?

Accepted Answer

A)  more efficient use of strategic trade policy 
B)  replacing import tariffs with import quotas 
C)  decreases in agricultural subsidies that distort trade 
D)  the establishment of local content laws to attract foreign investment

Question 9

Assume Boeing Inc. (of the United States) and Airbus Industries (of Europe) rival for monopoly profits in the Canadian aircraft market. Suppose the two firms face identical cost and demand conditions, as seen in Figure 6.1.
Figure 6.1. Strategic Trade Policy: Boeing versus Airbus 
-Referring to Figure 6.1, the Airbus subsidy leads to a (an) increase/decrease in Canadian consumer surplus of $______________, as compared to the consumer surplus that existed in the absence of a subsidy.

Accepted Answer

A)  increase of $8 million 
B)  increase of $10 million 
C)  decrease of $8 million 
D)  decrease of $10 million

Question 10

______________ attempt to produce a fair and free-trading environment in which there exists a level playing field.

Accepted Answer

A)  Trade-remedy laws 
B)  Industrial policies 
C)  Strategic trade policies 
D)  Economic sanctions

Question 11

In 1990, the United States and its allies imposed trade embargoes on exports/imports to/from Iraq in response to its invasion of Kuwait.The embargoes would induce smaller losses in Iraq's consumer surplus the

Accepted Answer

A)  lesser its initial dependence on foreign products. 
B)  less elastic Iraq's demand schedule. 
C)  lesser the available output from alternative suppliers. 
D)  more inelastic Iraq's supply schedule.

Question 12

In 1980, the United States announced an embargo on grain exports to the Soviet Union in response to the Soviet armed invasion of Afghanistan.The embargo was mainly resisted by

Accepted Answer

A)  U.S. grain consumers and producers of bread. 
B)  U.S. farmers and grain companies. 
C)  grain producers in foreign countries. 
D)  grain consumers in foreign countries.

Question 13

Unlike the Tokyo Round of multilateral trade negotiations, the Uruguay Round addressed the issues of intellectual property protection, trade barriers in services, and agricultural subsidies.

Accepted Answer

A) True 
 B)False

Question 14

What is the basis for trade adjustment assistance?

Accepted Answer

The answer of What is the basis for trade adjustment...

Question 15

Under the provisions of the World Trade Organization, Canada would have the right to impose countervailing duties on imports of South Korean steel when the South Korean government provides export subsidies to its steelmakers.

Accepted Answer

A) True 
 B)False

Question 16

The ______________ provides a forum for multinational trade negotiations, intended on reducing barriers to trade.

Accepted Answer

A)  United Nations 
B)  World Trade Organization 
C)  International Monetary Fund 
D)  Bank for International Settlements

Question 17

Delta Airlines and Southwest Airlines have been critics of the U.S.Export-Import Bank.They maintain that, because they are American companies, they cannot benefit from the Bank's export subsidies.However, their foreign rivals do benefit from the Bank's export subsidies.

Accepted Answer

A) True 
 B)False

Question 18

Which major economy spends the most in helping retrain workers and getting them reemployed?

Accepted Answer

A)  Denmark 
B)  Germany 
C)  France 
D)  United States

Question 19

For the United States in the early 1800s

Accepted Answer

A)  Northern manufacturers favored high tariffs while Southern farmers opposed them. 
B)  Southern farmers favored high tariffs while northern manufacturers opposed them. 
C)  high tariffs were favored by Northern manufacturers and Southern farmers. 
D)  low tariffs were favored by Northern manufacturers and Southern farmers.

Question 20

The main focus of the Uruguay Round of multilateral trade negotiations was on tariff barriers rather than nontariff trade barriers.

Accepted Answer

A) True 
 B)False

Exam 6: Trade Regulations and Industrial Policies

According to the fast-track provision of U.S.trade law, once the president has completed trade negotiations, their outcome is subject to a vote (without amendment) in Congress within 90 legislative days of submission.

An antidumping duty levied on imports of foreign-produced steel leads to an increase in consumer surplus in the home country.

The World Trade Organization primarily involves bilateral trade negotiations between two countries, say, the United States and China.

During the 1780s-1790s, the largest source of revenue for the U.S.government came from

______________ generally result(s) in greater economic pressure on the target nation.

The primary objective of the World Trade Organization is to

Compared with other displaced workers, workers tend to face adjustment costs as they must endure longer __ spells and larger wage losses once reemployed.

Which is one type of trade liberalization favored by the World Trade Organization?

______________ attempt to produce a fair and free-trading environment in which there exists a level playing field.

In 1990, the United States and its allies imposed trade embargoes on exports/imports to/from Iraq in response to its invasion of Kuwait.The embargoes would induce smaller losses in Iraq's consumer surplus the

In 1980, the United States announced an embargo on grain exports to the Soviet Union in response to the Soviet armed invasion of Afghanistan.The embargo was mainly resisted by

Unlike the Tokyo Round of multilateral trade negotiations, the Uruguay Round addressed the issues of intellectual property protection, trade barriers in services, and agricultural subsidies.

What is the basis for trade adjustment assistance?

Under the provisions of the World Trade Organization, Canada would have the right to impose countervailing duties on imports of South Korean steel when the South Korean government provides export subsidies to its steelmakers.

The ______________ provides a forum for multinational trade negotiations, intended on reducing barriers to trade.

Delta Airlines and Southwest Airlines have been critics of the U.S.Export-Import Bank.They maintain that, because they are American companies, they cannot benefit from the Bank's export subsidies.However, their foreign rivals do benefit from the Bank's export subsidies.

Which major economy spends the most in helping retrain workers and getting them reemployed?

For the United States in the early 1800s

The main focus of the Uruguay Round of multilateral trade negotiations was on tariff barriers rather than nontariff trade barriers.