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Trade Regulations And Industrial Policies

Trade Regulations And Industrial Policies



The theory of suggests that government can assist domestic companies in capturing economic profits from foreign competitors ?
0

A. international dumping
B. countervailing duties
C. Strategic trade policy
D. export promotion policy

The effect of the most favored nation (normal trade relations) clause is to ?
0

A. eliminate all tariffs between countries
B. increase all tariffs between countries
C. maintain a nondiscriminatory structure of tariffs
D. maintain a discriminatory structure of tariffs

The result of antidumping tariffs is to ?
0

A. increase consumer surplus in the importing country
B. decrease producer surplus in the importing country
C. impose a price floor on foreign prices in the importing country
D. impose a price ceiling on foreign price in the importing country

Concerning dumping, which of the following is true ?
0

A. predatory dumping represents the most common form of dumping by U.S firms
B. U.S firms can obtain protection from foreign dumping, even though this protection tends to harm overall U.S welfare
C. dumping can never be a profit-maximizing strategy for U.S firms to pursue
D. U.S firms rarely if ever, engage in distress dumping or persistent dumping

________ protection such as the escape clause, provide temporary protection to domestic industries facing competition from fairly traded foreign goods?
0

A. generalized system of preference
B. countervailing duty
C. domestic content
D. safeguards

Antidumping duties applied to imported goods ?
0

A. are abolished by the World Trade Organization
B. result in decreases in consumer surplus for domestic households
C. are imposed by industrial countries but not developing countries
D. result in lower-priced goods for domestic consumers

The World Trade Organization is sometimes criticized for all of the following reasons except?
0

A. it reduces the sovereignty of member countries
B. favors free trade over the quality of the environment
C. it has no way to solve trade disputes among member countries
D. it is a puppet of multinational corporations

Compared to what occurred under free trade, Mexico’s producer surplus ____ and consumer surplus ____ as a result of the subsidy Use the figure that you have plotted to calculate the amounts ?
0

A. decreases, decreases
B. decreases, increases
C. increases, decreases
D. increases, increases

Under free trade suppose that Japan can supply radios t mexico at the price of $45 Therefore, Mexico’s imports equal ?
0

A. 5 radios
B. 10 radios
C. 15 radios
D. zero radios

Those who argue in favor of import protection generally give the impression that such restricted trade will?
0

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



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