Question 1

Which of the following tariffs is not an import tariff?

Accepted Answer

A)  transit tariff 
B)  ad valorem tariff 
C)  specific tariff 
D)  compound tariff

Question 2

According to the text, Toyota built production facilities in multiple states across the U.S. in order to ________.

Accepted Answer

A)  benefit from various resources 
B)  minimize labor union regulations 
C)  gain widespread political support 
D)  appeal to multiple markets and consumers

Question 3

What arguments are used to justify government intervention in foreign trade? What tools are used to restrict trade?

Accepted Answer

The answer of What arguments are used to justify government...

Question 4

A voluntary export control is most likely used to ________.

Accepted Answer

A)  punish political enemies 
B)  appeal to domestic politicians 
C)  avoid trade conflicts with friendly trade partners 
D)  comply with strict product and testing standards

Question 5

What types of regulatory controls can governments use to create nontariff barriers?

Accepted Answer

The answer of What types of regulatory controls can governments...

Question 6

A country's adoption of strategic trade policies to cover a broad group of industries can actually reduce the country's overall international competitiveness because favoring certain industries inevitably hurts others.

Accepted Answer

A) True 
 B)False

Question 7

Which U.S. industry does NOT receive favorable treatment for national defense reasons?

Accepted Answer

A)  farming 
B)  electronics 
C)  machine tools 
D)  merchant marine

Question 8

A quota is a numerical limit on the quantity of a good that can be imported.

Accepted Answer

A) True 
 B)False

Question 9

The government of Country X actively manages the national economy by providing subsidies to aerospace firms and automobile manufacturers. Country X most likely engages in ________.

Accepted Answer

A)  trade blocs 
B)  industrial policies 
C)  export promotion strategies 
D)  import substitution policies

Question 10

The EU believes that Boeing has benefited from unfair trade practices because ________.

Accepted Answer

A)  Boeing had developed new technologies through U.S. Defense Department contracts 
B)  the U.S. has forgiven significant government loans to Boeing 
C)  Boeing controls the small aircraft market because of U.S. defense contracts 
D)  the WTO has overlooked direct subsidies from the U.S. government

Question 11

The harmonized tariff schedule is a detailed classification of imported goods.

Accepted Answer

A) True 
 B)False

Question 12

Most tariffs imposed by developed countries are ad valorem.

Accepted Answer

A) True 
 B)False

Question 13

What effect do subsidies have on international trade? Do you think subsidies are appropriate and effective? Why or why not?

Accepted Answer

The answer of What effect do subsidies have on international...

Question 14

________ make it more difficult for importers of nonessential goods to acquire foreign exchange.

Accepted Answer

A)  Currency controls 
B)  Restricted access to distribution networks 
C)  Numerical export controls 
D)  Public-sector procurement policies

Question 15

Country Q is run by a dictator, and Country X wants to use a nontariff barrier to discipline Country Q. Which of the following would most likely be implemented by Country X?

Accepted Answer

A)  numerical export control 
B)  voluntary export restraint 
C)  regulatory control 
D)  embargo

Question 16

Explain the effects of the tariff rate quota on the sugar industry in the United States.

Accepted Answer

The answer of Explain the effects of the tariff rate...

Question 17

During the Clinton administration, which industry did NOT receive federal research and development support?

Accepted Answer

A)  genetics 
B)  agriculture 
C)  highway systems 
D)  computer software

Question 18

How does a tariff rate quota work?

Accepted Answer

The answer of How does a tariff rate quota work?...

Question 19

Which of the following is an example of a nontariff barrier that restricts access to distribution networks?

Accepted Answer

A)  Malaysia's requirement that during prime time at least 40 percent of the songs on the radio be by local artists 
B)  Turkmenistan's requirement that all imports of consumer goods be approved by the State Standards Committee 
C)  China's policy that imported sugar be distributed only by state-owned enterprises 
D)  Canada's requirement that baby food be packaged in 4.5- and 7.5-ounce containers

Question 20

The United States is an ardent supporter of industrial policy.

Accepted Answer

A) True 
 B)False

Exam 9: Formulation of National Trade Policies

Which of the following tariffs is not an import tariff?

According to the text, Toyota built production facilities in multiple states across the U.S. in order to ________.

What arguments are used to justify government intervention in foreign trade? What tools are used to restrict trade?

A voluntary export control is most likely used to ________.

What types of regulatory controls can governments use to create nontariff barriers?

A country's adoption of strategic trade policies to cover a broad group of industries can actually reduce the country's overall international competitiveness because favoring certain industries inevitably hurts others.

Which U.S. industry does NOT receive favorable treatment for national defense reasons?

A quota is a numerical limit on the quantity of a good that can be imported.

The government of Country X actively manages the national economy by providing subsidies to aerospace firms and automobile manufacturers. Country X most likely engages in ________.

The EU believes that Boeing has benefited from unfair trade practices because ________.

The harmonized tariff schedule is a detailed classification of imported goods.

Most tariffs imposed by developed countries are ad valorem.

What effect do subsidies have on international trade? Do you think subsidies are appropriate and effective? Why or why not?

________ make it more difficult for importers of nonessential goods to acquire foreign exchange.

Country Q is run by a dictator, and Country X wants to use a nontariff barrier to discipline Country Q. Which of the following would most likely be implemented by Country X?

Explain the effects of the tariff rate quota on the sugar industry in the United States.

During the Clinton administration, which industry did NOT receive federal research and development support?

How does a tariff rate quota work?

Which of the following is an example of a nontariff barrier that restricts access to distribution networks?

The United States is an ardent supporter of industrial policy.