The arrangement where goods imported from trading partners in the developing world are subject to lower tariff rates than goods from other countries is referred to as ?

Related Mcqs:

1. Suppose there is no tariff on imported inputs and the ratio of the value of imported inputs the value of the final product is 0.5 If the nominal tariff rate on the final product is 10 percent, the effective tariff rate equals ?

   A. 5 percent
   B. 10 percent
   C. 15 percent
   D. 20 percent

2. A country can still gain from trading certain goods even though its trading partners can produce those goods more cheaply. How is known this principle ?

   A. Relative Advantage
   B. Complete Advantage
   C. Comparative Edge
   D. Comparative Advantage

3. A country can still gain from trading certain goods even though its trading partners can produce those goods more cheaply. How is known this principle?

   A. Relative Advantage
   B. Complete Advantage
   C. Comparative Edge
   D. Comparative Advantage

4. Tariff levels in advanced countries tend to be __________ tariff levels in developing countries?

   A. higher than
   B. equal to
   C. lower than
   D. there is no general pattern

5. Suppose that the nominal tariff rate on finished computers is 12 percent and that the weighted average of the nominal tariff rates on the inputs used in producing computers is 18 percent. Thus, the effective rate of protection for the computer industry must ?

   A. be less than 12 percent and can be negative
   B. be less than 12 percent but must be greater than zero
   C. equal 6 percent
   D. exceed 30 percent

6. Under adjustable pegged exchange rates, if the rate of inflation in the United States exceeds the rate of inflation of its trading partners ?

   A. U.S exports tend to rise, and imports tend to fall
   B. U.S imports tend to rise, and exports tend to fall
   C. U.S foreign exchange reserves tend to rise
   D. U.S foreign exchange reserves remain constant

7. Under managed floating exchange rates if the rate of inflation in the United States is less than the rate of inflation of its trading partners the dollar will likely ?

   A. appreciates against foreign currencies
   B. depreciates against foreign currencies
   C. be officially revalued by the government
   D. be officially devalued by the government

8. To help developing nations strengthen their international competitiveness many industrial nations have granted non-reciprocal tariff reductions to developing nations under the ?

   A. international commodity agreements program
   B. multilateral contract program
   C. generalized system of preferences program
   D. export-led growth program

9. Suppose that tomatoes from Mexico face a 20 percent tariff in the United States and a 25 percent tariff in Canada. If the United States and Canada maintain free trade between each other, the these two countries belong to a ?

   A. free-trade area
   B. customs union
   C. common market
   D. monetary union

10. Major trading partners of the United States including all of the following countries except ?

    A. Canada
    B. Mexico
    C. China
    D. North Korea