Question 1

Antidumping duties are often called

Accepted Answer

A)   special circumstance duties.
B)   positive duties.
C)   retroactive duties.
D)   countervailing duties.E) A) and D)
F) A) and C)

Question 2

TRIPS regulations oblige WTO members to

Accepted Answer

A)   grant and enforce patents lasting at least 100 years.
B)   grant and enforce copyrights lasting 100 years.
C)   comply with the rules within five years in the case of the rich countries.
D)   comply with the rules within 10 years in the case of the poorest countries.E) None of the above
F) A) and D)

Question 3

Economist Paul Krugman suggests that strategic trade policy aimed at establishing domestic firms in a dominant position in a global industry is a beggar-thy-neighbor policy that

Accepted Answer

A)   provides enhanced protection for intellectual property of those firms.
B)   boosts national income at the expense of other countries.
C)   reduces domestic agricultural profits.
D)   depletes national income to the benefit of other countries.E) C) and D)
F) B) and C)

Question 4

Discuss the Doha Round of trade talks.

Accepted Answer

The Doha Round began in 2001. Its agenda...

Question 5

According to the ________ policy, subsidies can help a firm achieve a first-mover advantage in an emerging industry.

Accepted Answer

A)   strategic trade
B)   antidumping
C)   tariff quota
D)   free tradeE) None of the above
F) A) and B)

Question 6

Antidumping actions are concentrated in certain sectors of the economy such as basic metal industries, chemicals, plastics, and machinery and electrical equipment.

Accepted Answer

A) True 
 B)False

Question 7

________ is a quota on trade imposed by the exporting country, typically at the request of the importing country's government.

Accepted Answer

A)   Voluntary export restraint
B)   Specific tariff quota
C)   Trade reconciliation
D)   Ad valorem tariffE) C) and D)
F) A) and B)

Question 8

In 1997, two South Korean manufacturers of semiconductors, LG Semicon and Hyundai Electronics, were accused of selling dynamic random access memory chips (DRAMs)  in the U.S. market at below their costs of production. It was alleged that the firms were trying to unload their excess production in the United States. This is an example of

Accepted Answer

A)   an ad valorem tariff.
B)   a subsidy.
C)   dumping.
D)   an import quota.E) All of the above
F) B) and C)

Question 9

Import tariffs

Accepted Answer

A)   reduce the price of foreign goods.
B)   create efficient utilization of resources.
C)   reduce the overall efficiency of the world economy.
D)   are generally pro-consumer and anti-producer.E) A) and C)
F) B) and C)

Question 10

The U.S. government has used the threat of punitive trade sanctions to try to get the Chinese government to enforce 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.E) All of the above
F) C) and D)

Question 11

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) A) and D)
F) C) and D)

Question 12

The Netherlands exports tulip bulbs to almost every country in the world except Japan. This was because in Japan, customs inspectors insisted on checking every tulip bulb by cutting it vertically down the middle. This is an example of which of the following trade barriers?

Accepted Answer

A)   export restraint
B)   administrative trade policies
C)   local content requirement
D)   ad valoremE) B) and C)
F) A) and B)

Question 13

What term refers to a situation in which a government does not attempt to restrict what its citizens can buy or sell to another country?

Accepted Answer

A)   tariffs
B)   import quotas
C)   free trade
D)   subsidiesE) B) and D)
F) B) and C)

Question 14

The World Trade Organization was created as part of the Uruguay Round.

Accepted Answer

A) True 
 B)False

Question 15

The WTO's GATS has taken the lead in

Accepted Answer

A)   providing enhanced protection for intellectual property.
B)   extending free trade agreements to services.
C)   reducing agricultural subsidies.
D)   enforcing GATT rules.E) A) and B)
F) A) and C)

Question 16

What has been the experience of the WTO to date? What does the future look like for the organization?

Accepted Answer

By 2016, the WTO had 164 members, includ...

Question 17

Tariffs on industrial goods remain higher than tariffs on services.

Accepted Answer

A) True 
 B)False

Question 18

________ a requirement that some specific fraction of a good be produced domestically.

Accepted Answer

A)   Administrative trade policies are
B)   The Buy American Act is
C)   A local content requirement is
D)   Bureaucratic rules areE) A) and D)
F) B) and C)

Question 19

Strategic trade policy suggests that a government should use ________ to support promising firms that are active in newly emerging industries.

Accepted Answer

A)   tariff rate quotas
B)   quota rents
C)   subsidies
D)   ad valorem tariffsE) A) and B)
F) A) and C)

Question 20

Which of the following statements concerning a voluntary export restraint is true?

Accepted Answer

A)   It benefits domestic producers by limiting import competition.
B)   In most cases, it benefits consumers.
C)   It lowers the domestic price of an imported good.
D)   It is a variant of the ad valorem tariff.E) A) and B)
F) All of the above

Exam 7: Government Policy and International Trade

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

Correct Answer
verified

Strategic trade policy suggests that a government should use ________ to support promising firms that are active in newly emerging industries.

Correct Answer
verified

________ is a quota on trade imposed by the exporting country, typically at the request of the importing country's government.

Correct Answer
verified

________ a requirement that some specific fraction of a good be produced domestically.

Correct Answer
verified

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

Correct Answer
verified

Antidumping duties are often called

Correct Answer
verified

The WTO's GATS has taken the lead in

Correct Answer
verified

Tariffs on industrial goods remain higher than tariffs on services.

Correct Answer
verified

According to the ________ policy, subsidies can help a firm achieve a first-mover advantage in an emerging industry.

Correct Answer
verified

Which of the following statements concerning a voluntary export restraint is true?

Correct Answer
verified

Antidumping actions are concentrated in certain sectors of the economy such as basic metal industries, chemicals, plastics, and machinery and electrical equipment.

Correct Answer
verified

TRIPS regulations oblige WTO members to

Correct Answer
verified

What has been the experience of the WTO to date? What does the future look like for the organization?

Correct Answer
verified
By 2016, the WTO had 164 members, includ...
View Answer

What term refers to a situation in which a government does not attempt to restrict what its citizens can buy or sell to another country?

Correct Answer
verified

Correct Answer
verified

Economist Paul Krugman suggests that strategic trade policy aimed at establishing domestic firms in a dominant position in a global industry is a beggar-thy-neighbor policy that

Correct Answer
verified

Discuss the Doha Round of trade talks.

Correct Answer
verified
The Doha Round began in 2001. Its agenda...
View Answer

The World Trade Organization was created as part of the Uruguay Round.

Correct Answer
verified

Import tariffs

Correct Answer
verified

The Netherlands exports tulip bulbs to almost every country in the world except Japan. This was because in Japan, customs inspectors insisted on checking every tulip bulb by cutting it vertically down the middle. This is an example of which of the following trade barriers?

Correct Answer
verified

Exam 7: Government Policy and International Trade

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

Correct AnswerverifiedShow Answer

Strategic trade policy suggests that a government should use ________ to support promising firms that are active in newly emerging industries.

Correct AnswerverifiedShow Answer

________ is a quota on trade imposed by the exporting country, typically at the request of the importing country's government.

Correct AnswerverifiedShow Answer

________ a requirement that some specific fraction of a good be produced domestically.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Antidumping duties are often called

Correct AnswerverifiedShow Answer

The WTO's GATS has taken the lead in

Correct AnswerverifiedShow Answer

Tariffs on industrial goods remain higher than tariffs on services.

Correct AnswerverifiedShow Answer

According to the ________ policy, subsidies can help a firm achieve a first-mover advantage in an emerging industry.

Correct AnswerverifiedShow Answer

Which of the following statements concerning a voluntary export restraint is true?

Correct AnswerverifiedShow Answer

Antidumping actions are concentrated in certain sectors of the economy such as basic metal industries, chemicals, plastics, and machinery and electrical equipment.

Correct AnswerverifiedShow Answer

TRIPS regulations oblige WTO members to

Correct AnswerverifiedShow Answer

What has been the experience of the WTO to date? What does the future look like for the organization?

Correct AnswerverifiedBy 2016, the WTO had 164 members, includ...View AnswerShow Answer

What term refers to a situation in which a government does not attempt to restrict what its citizens can buy or sell to another country?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Economist Paul Krugman suggests that strategic trade policy aimed at establishing domestic firms in a dominant position in a global industry is a beggar-thy-neighbor policy that

Correct AnswerverifiedShow Answer

Discuss the Doha Round of trade talks.

Correct AnswerverifiedThe Doha Round began in 2001. Its agenda...View AnswerShow Answer

The World Trade Organization was created as part of the Uruguay Round.

Correct AnswerverifiedShow Answer

Import tariffs

Correct AnswerverifiedShow Answer

The Netherlands exports tulip bulbs to almost every country in the world except Japan. This was because in Japan, customs inspectors insisted on checking every tulip bulb by cutting it vertically down the middle. This is an example of which of the following trade barriers?

Correct AnswerverifiedShow Answer

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Correct Answer
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Correct Answer
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Correct Answer
verified
By 2016, the WTO had 164 members, includ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The Doha Round began in 2001. Its agenda...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified