Question 1

The U.S.government has used the threat of punitive trade sanctions to try to get the Chinese government to enforce its intellectual property laws.This is an example of government intervention based on:

Accepted Answer

A)  human rights protection. 
B)  national security. 
C)  consumer protection. 
D)  retaliation.

Question 2

Bureaucratic rules designed to make it difficult for imports to enter a country are called local content requirements.

Accepted Answer

A) True 
 B)False

Question 3

What is a quota rent? Provide an example of how an import quota affects price.

Accepted Answer

The answer of What is a quota rent? Provide an...

Question 4

What are the drawbacks of government intervention?

Accepted Answer

The answer of What are the drawbacks of government intervention?...

Question 5

Discuss the Doha Round of trade talks.

Accepted Answer

The answer of Discuss the Doha Round of trade talks....

Question 6

To conform to local content regulations,a firm may have to locate more production activities in a given market than it would otherwise.

Accepted Answer

A) True 
 B)False

Question 7

Antidumping policies vary drastically from country to country.

Accepted Answer

A) True 
 B)False

Question 8

Tariff barriers lower the costs of exporting products to a country.

Accepted Answer

A) True 
 B)False

Question 9

Identify the INCORRECT statement about trade barriers.

Accepted Answer

A)  They raise the costs of exporting products to a country. 
B)  They may put a firm at a competitive advantage to indigenous competitors. 
C)  They may limit a firm's ability to serve a country from locations outside of that country. 
D)  To conform to local content regulations,a firm may have to locate more production activities in a given market than it would otherwise.

Question 10

What is the TRIPS agreement? Why was it established?

Accepted Answer

The answer of What is the TRIPS agreement? Why was...

Question 11

The WTO has the ability to force any member nation to take an action to which it is opposed.

Accepted Answer

A) True 
 B)False

Question 12

Compare and contrast import quotas and voluntary export restraints.

Accepted Answer

The answer of Compare and contrast import quotas and voluntary...

Question 13

Why are tariff rates on agricultural products generally higher than tariff rates on manufactured products or services?

Accepted Answer

The answer of Why are tariff rates on agricultural products...

Question 14

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

Accepted Answer

A)  import quotas 
B)  voluntary export restraints 
C)  local content requirements 
D)  antidumping duties

Question 15

Administrative trade policies are:

Accepted Answer

A)  requirements that some specific fraction of a good be produced domestically. 
B)  quotas on trade imposed by the exporting country. 
C)  bureaucratic rules designed to make it difficult for imports to enter a country. 
D)  designed to punish foreign firms that engage in dumping.

Question 16

Specific tariffs are:

Accepted Answer

A)  levied as a proportion of the value of the imported good. 
B)  government payment to domestic producers. 
C)  in the form of manufacturing or production requirements of goods. 
D)  levied as a fixed charge for each unit of a good imported.

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

During the 1980s and early 1990s,the world trading system erected by the GATT gained momentum as protectionist demands generally decreased across the world.

Accepted Answer

A) True 
 B)False

Question 19

The Buy America Act specifies that government agencies must give preference to American products when putting contracts for equipment out to bid unless the foreign products have a significant price disadvantage.

Accepted Answer

A) True 
 B)False

Question 20

Krugman has suggested that trade policy designed to retaliate against another country's trade policy would hurt the citizens of both countries.

Accepted Answer

A) True 
 B)False

Exam 7: The Political Economy of International Trade

The U.S.government has used the threat of punitive trade sanctions to try to get the Chinese government to enforce its intellectual property laws.This is an example of government intervention based on:

Bureaucratic rules designed to make it difficult for imports to enter a country are called local content requirements.

What is a quota rent? Provide an example of how an import quota affects price.

What are the drawbacks of government intervention?

Discuss the Doha Round of trade talks.

To conform to local content regulations,a firm may have to locate more production activities in a given market than it would otherwise.

Antidumping policies vary drastically from country to country.

Tariff barriers lower the costs of exporting products to a country.

Identify the INCORRECT statement about trade barriers.

What is the TRIPS agreement? Why was it established?

The WTO has the ability to force any member nation to take an action to which it is opposed.

Compare and contrast import quotas and voluntary export restraints.

Why are tariff rates on agricultural products generally higher than tariff rates on manufactured products or services?

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

Administrative trade policies are:

Specific tariffs are:

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

During the 1980s and early 1990s,the world trading system erected by the GATT gained momentum as protectionist demands generally decreased across the world.

The Buy America Act specifies that government agencies must give preference to American products when putting contracts for equipment out to bid unless the foreign products have a significant price disadvantage.

Krugman has suggested that trade policy designed to retaliate against another country's trade policy would hurt the citizens of both countries.