Question 1

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 2

Until 1995,GATT rules applied to all of the following EXCEPT:

Accepted Answer

A)   manufactured goods.
B)   services.
C)   textiles.
D)   agricultural products.E) C) and D)
F) B) and D)

Question 3

Discuss the establishment of GATT.What was GATT's objective?

Accepted Answer

The GATT was a multilateral agreement wh...

Question 4

Which of the following statements concerning a voluntary export restraint is NOT true?

Accepted Answer

A)   It benefits domestic producers by limiting import competition.
B)   In most cases, it benefits consumers.
C)   It raises the domestic price of an imported good.
D)   It is a variant of the import quota.E) None of the above
F) A) and B)

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

Human rights activists see WTO rules as outlawing the ability of nations to stop imports from countries where child labor is used or working conditions are hazardous.

Accepted Answer

A) True 
 B)False

Question 7

A key issue in the "millennium round" of the WTO was to increase barriers to cross-border trade in agricultural products.

Accepted Answer

A) True 
 B)False

Question 8

_____ is variously defined as selling goods in a foreign market at below their costs of production or as selling goods in a foreign market at below their "fair" market value.

Accepted Answer

A)   Export restraint
B)   Dumping
C)   Local content requirement
D)   Ad valoremE) A) and B)
F) All of the above

Question 9

The Helms-Burton Act of 1996 was aimed at foreign companies that were undermining U.S.trade sanctions against Libya and Iran.

Accepted Answer

A) True 
 B)False

Question 10

A key goal of the 1986 Uruguay Round was to extend GATT to cover trade in commodities.

Accepted Answer

A) True 
 B)False

Question 11

Discuss the infant industry argument for intervention in markets.What is GATT's position on the argument?

Accepted Answer

Alexander Hamilton proposed the infant i...

Question 12

Tariffs on industrial goods remain higher than tariffs on services.

Accepted Answer

A) True 
 B)False

Question 13

Unlike other trade policies,local content regulations tend to benefit consumers and not producers.

Accepted Answer

A) True 
 B)False

Question 14

What is Paul Krugman's position on strategic trade policy?

Accepted Answer

Paul Krugman suggests that strategic tra...

Question 15

A common hybrid of a quota and a tariff is known as a(n) :

Accepted Answer

A)   import tariff quota.
B)   voluntary export restraint.
C)   ad valorem tariff.
D)   tariff rate quota.E) C) and D)
F) None of the above

Question 16

WTO rules do not allow countries to impose antidumping duties on foreign goods that are being sold cheaper than at home,or below their cost of production,even when domestic producers can show that they are being harmed.

Accepted Answer

A) True 
 B)False

Question 17

The infant industry argument is criticized because it relies on an assumption that:

Accepted Answer

A)   new manufacturing industries in developing nations can initially compete with established industries in developed countries.
B)   selling goods in a foreign market at below their "fair" market value is legally and ethically justified.
C)   the domestic industry in a developing nation lacks the capacity to meet demand.
D)   firms are unable to make efficient long-term investments by borrowing money from the domestic or international capital market.E) None of the above
F) A) and D)

Question 18

Tariffs are unambiguously pro-consumer and anti-producer.

Accepted Answer

A) True 
 B)False

Question 19

Explain how governments use administrative trade policies to boost exports and restrict imports.Provide an example of an administrative trade policy.

Accepted Answer

Administrative trade policies are bureau...

Question 20

Discuss the economic reasons for government intervention in markets.

Accepted Answer

The economic reasons for government inte...

Exam 7: Government Policy and International Trade

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

Correct AnswerverifiedShow Answer

What is Paul Krugman's position on strategic trade policy?

Correct AnswerverifiedPaul Krugman suggests that strategic tra...View AnswerShow Answer

Until 1995,GATT rules applied to all of the following EXCEPT:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A key issue in the "millennium round" of the WTO was to increase barriers to cross-border trade in agricultural products.

Correct AnswerverifiedShow Answer

The infant industry argument is criticized because it relies on an assumption that:

Correct AnswerverifiedShow Answer

Discuss the economic reasons for government intervention in markets.

Correct AnswerverifiedThe economic reasons for government inte...View AnswerShow Answer

Tariffs on industrial goods remain higher than tariffs on services.

Correct AnswerverifiedShow Answer

Human rights activists see WTO rules as outlawing the ability of nations to stop imports from countries where child labor is used or working conditions are hazardous.

Correct AnswerverifiedShow Answer

The Helms-Burton Act of 1996 was aimed at foreign companies that were undermining U.S.trade sanctions against Libya and Iran.

Correct AnswerverifiedShow Answer

Discuss the establishment of GATT.What was GATT's objective?

Correct AnswerverifiedThe GATT was a multilateral agreement wh...View AnswerShow Answer

Unlike other trade policies,local content regulations tend to benefit consumers and not producers.

Correct AnswerverifiedShow Answer

A key goal of the 1986 Uruguay Round was to extend GATT to cover trade in commodities.

Correct AnswerverifiedShow Answer

Which of the following statements concerning a voluntary export restraint is NOT true?

Correct AnswerverifiedShow Answer

A common hybrid of a quota and a tariff is known as a(n) :

Correct AnswerverifiedShow Answer

_____ is variously defined as selling goods in a foreign market at below their costs of production or as selling goods in a foreign market at below their "fair" market value.

Correct AnswerverifiedShow Answer

Explain how governments use administrative trade policies to boost exports and restrict imports.Provide an example of an administrative trade policy.

Correct AnswerverifiedAdministrative trade policies are bureau...View AnswerShow Answer

Discuss the infant industry argument for intervention in markets.What is GATT's position on the argument?

Correct AnswerverifiedAlexander Hamilton proposed the infant i...View AnswerShow Answer

WTO rules do not allow countries to impose antidumping duties on foreign goods that are being sold cheaper than at home,or below their cost of production,even when domestic producers can show that they are being harmed.

Correct AnswerverifiedShow Answer

Tariffs are unambiguously pro-consumer and anti-producer.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Paul Krugman suggests that strategic tra...
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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The economic reasons for government inte...
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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The GATT was a multilateral agreement wh...
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Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Administrative trade policies are bureau...
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Correct Answer
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Alexander Hamilton proposed the infant i...
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Correct Answer
verified

Correct Answer
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