Question 1

Has industrial policy contributed significantly to Japan's economic growth?

Accepted Answer

The answer of Has industrial policy contributed significantly to Japan's...

Question 2

As a way of helping U.S.business firms trade in the world market on a more equal terms with their organized foreign competitors,the U.S.government permits them to form export trade associations and export trading companies.

Accepted Answer

A) True 
 B)False

Question 3

According to the strategic-trade-policy hypothesis,a subsidy granted to domestic exporters may lead to increased export profits which more than offset the cost of the subsidy to domestic taxpayers.

Accepted Answer

A) True 
 B)False

Question 4

According to the strategic- trade- policy hypothesis,governmental subsidies granted to domestic producers can help them in capturing economic profits from foreign competitors.

Accepted Answer

A) True 
 B)False

Question 5

According to the escape clause,temporary trade restrictions may be imposed in industries where domestic producers are substantially being harmed by surging imports.

Accepted Answer

A) True 
 B)False

Question 6

It is widely recognized that the economic sanctions levied against Iraq in 1990 were a major factor causing Iraq to withdraw its military forces from Kuwait.

Accepted Answer

A) True 
 B)False

Question 7

Proponents of the Smoot-Hawley Act of 1930 viewed it as a means of combating domestic unemployment.

Accepted Answer

A) True 
 B)False

Question 8

Which policy reflects the notion that if society enjoys gains due to increased efficiency stemming from trade liberalization,some sort of compensation should be provided to those who are temporarily hurt by import competition?

Accepted Answer

A)  Countervailing duties 
B)  Trade adjustment assistance 
C)  Domestic subsidies 
D)  Most-favored-nation standard

Question 9

The high point of U.S.protection culminated with the passage of the:

Accepted Answer

A)  Smoot-Hawley Act of 1930 
B)  General Agreements on Tariffs and Trade in 1947 
C)  Trade Reduction Act of 1962 
D)  Adjustment Assistance Act of 1970

Question 10

Figure 6.2 illustrates the calculator market for Mexico, assumed to be a small nation that is unable influence the South Korean (world) price. Assume the South Korean price to be $60 per calculator.
Figure 6.2. Effects of an Export Subsidy
 
-Consider Figure 6.2.As a result of the South Korean subsidy,Mexicans find their consumer surplus:

Accepted Answer

A)  Rising by $160 
B)  Rising by $220 
C)  Falling by $160 
D)  Falling by $220

Question 11

Those who argue in favor of import protection generally give the impression that such restricted trade will:

Accepted Answer

A)  Decrease the level of national security 
B)  Provide benefits to some particular industry 
C)  Provide benefits to the entire nation 
D)  Not yield welfare losses for the nation

Question 12

The World Trade Organization brings into the multilateral trading system manufactured goods and agricultural products,but not trade in services,intellectual property protection,and investment.

Accepted Answer

A) True 
 B)False

Question 13

Figure 6.2 illustrates the calculator market for Mexico, assumed to be a small nation that is unable influence the South Korean (world) price. Assume the South Korean price to be $60 per calculator.
Figure 6.2. Effects of an Export Subsidy
 
-Consider Figure 6.2.For Mexico's producers and consumers as a whole,the South Korean subsidy leads to a:

Accepted Answer

A)  $120 welfare gain 
B)  $320 welfare gain 
C)  $120 welfare loss 
D)  $320 welfare loss

Question 14

The World Trade Organization provides for all of the following except:

Accepted Answer

A)  The usage of the normal-trade-relation (most-favored-nation) clause 
B)  Assistance in the settlement of trade disagreements 
C)  Multilateral tariff reductions 
D)  Bilateral tariff reductions

Question 15

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 16

The U.S.trade-remedy laws attempt to redress hardships for U.S.firms resulting from actions and policies of foreign firms and governments.

Accepted Answer

A) True 
 B)False

Question 17

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 18

Assume that the United States imports chemicals from Germany.Trade theory predicts that if the German government grants an export subsidy to its chemical firms,the overall welfare of the United States will increase.

Accepted Answer

A) True 
 B)False

Question 19

What is the essential idea behind strategic trade policy?

Accepted Answer

The answer of What is the essential idea behind strategic...

Question 20

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

Exam 6: Trade Regulations and Industrial Policies

Has industrial policy contributed significantly to Japan's economic growth?

As a way of helping U.S.business firms trade in the world market on a more equal terms with their organized foreign competitors,the U.S.government permits them to form export trade associations and export trading companies.

According to the strategic-trade-policy hypothesis,a subsidy granted to domestic exporters may lead to increased export profits which more than offset the cost of the subsidy to domestic taxpayers.

According to the strategic- trade- policy hypothesis,governmental subsidies granted to domestic producers can help them in capturing economic profits from foreign competitors.

According to the escape clause,temporary trade restrictions may be imposed in industries where domestic producers are substantially being harmed by surging imports.

It is widely recognized that the economic sanctions levied against Iraq in 1990 were a major factor causing Iraq to withdraw its military forces from Kuwait.

Proponents of the Smoot-Hawley Act of 1930 viewed it as a means of combating domestic unemployment.

Which policy reflects the notion that if society enjoys gains due to increased efficiency stemming from trade liberalization,some sort of compensation should be provided to those who are temporarily hurt by import competition?

The high point of U.S.protection culminated with the passage of the:

Those who argue in favor of import protection generally give the impression that such restricted trade will:

The World Trade Organization brings into the multilateral trading system manufactured goods and agricultural products,but not trade in services,intellectual property protection,and investment.

The World Trade Organization provides for all of the following except:

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.

The U.S.trade-remedy laws attempt to redress hardships for U.S.firms resulting from actions and policies of foreign firms and governments.

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.

Assume that the United States imports chemicals from Germany.Trade theory predicts that if the German government grants an export subsidy to its chemical firms,the overall welfare of the United States will increase.

What is the essential idea behind strategic trade policy?

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: