Question 1

Which of the following is a major reason why many economists remain critical of the infant industry argument?

Accepted Answer

A)   It makes the domestic industry inefficient.
B)   It does not provide guaranteed employment for the citizens.
C)   It affects the standards of living and per capita income of the people.
D)   It promotes foreign direct investment.
E)   It leads to reduced prices in domestic markets.F) A) and B)
G) A) and C)

Question 2

Explain with an example the administrative trade policies used by the governments in addition to the formal instruments of trade policy.

Accepted Answer

In addition to the formal instruments of...

Question 3

Import tariffs increase the overall efficiency of the world economy.

Accepted Answer

A) True 
 B)False

Question 4

Government intervention can be self-defeating because it tends to protect the inefficient rather than help firms become efficient global competitors.

Accepted Answer

A) True 
 B)False

Question 5

Antidumping duties are often called _____ duties.

Accepted Answer

A)   tariff rent
B)   counterveiling
C)   subsidy
D)   quota rent
E)   export restraintF) A) and B)
G) B) and C)

Question 6

Tariffs are the oldest instrument of trade policy.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is true about tariffs?

Accepted Answer

A)   It reduces the price of foreign goods for domestic consumers.
B)   Tariffs reduce the overall efficiency of the world economy.
C)   The tariffs that are levied as a fixed charge for each unit of a good imported are known as ad valorem tariffs.
D)   Tariffs are mainly pro-consumer and anti-producer.
E)   Tariffs are always levied on imports.F) B) and E)
G) C) and D)

Question 8

The 1995 Uruguay agreement that established the WTO also contained an agreement to protect intellectual property.

Accepted Answer

A) True 
 B)False

Question 9

The main effect of the Uruguay Round Agreement on agriculture sector was:

Accepted Answer

A)   the imposition of caps on textile exports.
B)   the substantial reduction in farm subsidies.
C)   the increment in tariffs on agricultural produce.
D)   exemption of a wide range of agricultural services from GATT rules.
E)   that the GATT rules were extended to processed agricultural goods.F) None of the above
G) A) and B)

Question 10

Which of the following industries was the first to be targeted for reform under WTO regulations governing foreign direct investment?

Accepted Answer

A)   Agricultural industry
B)   Aviation industry
C)   Global telecommunication industry
D)   Defense industry
E)   Pharmaceutical industryF) D) and E)
G) All of the above

Question 11

The Buy America Act specifies that government agencies must give preference to American products when putting contracts for equipment out for bid unless the foreign products have a significant advantage.

Accepted Answer

A) True 
 B)False

Question 12

The two US agencies that deal with antidumping complaints are:

Accepted Answer

A)   the Economic Offences Wing and the Conciliation Council.
B)   the International Trade Commission and the Industry Council.
C)   the Commerce Department and the International Trade Commission.
D)   the Federal Trade Commission and the Economic Council.
E)   the Industry Council and the Economic Offences Wing.F) A) and E)
G) D) and E)

Question 13

A tariff of 15-20% was levied by the government of Cadmia on the value of automobile accessories imported from a neighboring country.This increased the price of those imported car accessories for the consumers in Cadmia.Which of the following instruments of trade policy is being by the government of Cadmia?

Accepted Answer

A)   Local content tariff
B)   Ad valorem tariff
C)   Subsidies
D)   Quotas
E)   Antidumping tariffF) C) and E)
G) All of the above

Question 14

One of the reasons why protectionist pressures arose around the world during the 1980s was:

Accepted Answer

A)   that many countries found ways to get around GATT regulations.
B)   the opening up of national markets to cheap products from China.
C)   the fall of the Soviet Union.
D)   the persistent trade lead taken by the United States.
E)   the Japanese failure in industries such as automobiles and semiconductors that strained the world tradingF) C) and D)
G) A) and E)

Question 15

Which of the following multilateral agreements was established under U.S.leadership in 1947,with the objective to liberalize trade by eliminating tariffs,subsidies,import quotas,and the like?

Accepted Answer

A)   General Agreement of Tariffs and Trade (GATT) 
B)   North American Free Trade Agreement (NAFT
A)  
C)   Central American Free Trade Agreement (CAFT
A)  
D)   Free Trade Areas of the Americas (FTA
A)  
E)   North Atlantic Treaty Organization (NATO) F) All of the above
G) A) and D)

Question 16

Which of the following best explains the reason for rise in protectionist pressures around the world during the 1980s?

Accepted Answer

A)   The strict GATT bureaucracy in Geneva controlling trade regulations
B)   The opening up of international markets to cheap products from China
C)   The fall of the Soviet Union
D)   The persistent trade deficit in the world's largest economy, the United States
E)   The economic failure of Japan which hampered the global economyF) B) and D)
G) B) and C)

Question 17

Give a brief description of the origin,functions,and successes of GATT from 1947 to 1979,before protectionist trends gained momentum across the world.

Accepted Answer

Under U.S.leadership,the GATT was establ...

Question 18

The Palladian government required that all imported products that came from Lovaskiya be checked by Palladian customs inspectors.The inspection was done at a container freight station that was both remote and poorly staffed.This delayed the Lovaskiyan consignment from reaching the consumers in Palladia.The inspection strategy adopted by the customs officers in Palladia is an example of a(n) :

Accepted Answer

A)   antidumping policy.
B)   voluntary export restraint policy.
C)   administrative trade policy.
D)   monopolistic competition policy.
E)   tariff rent policy.F) B) and E)
G) None of the above

Question 19

According to Krugman,the ideal way for a country to respond,when the foreign competitors of its companies are already being supported by government subsidies,is probably not to engage in retaliatory action,but to:

Accepted Answer

A)   help establish rules that minimize the use of trade-distorting subsidies.
B)   adopt the strategic trade policy as a way to establish domestic firms in a dominant position in the global industry.
C)   provide subsidy to a new industry where the foreign competitors have not had the benefit of such strategic trade policies.
D)   use a combination of home-market protection and export-promoting subsidies.
E)   provide high level of subsidies to the oldest industry in the country.F) C) and D)
G) D) and E)

Question 20

In most cases,tariffs are placed on imports to protect domestic producers from foreign competition by raising the price of imported goods.

Accepted Answer

A) True 
 B)False

Exam 7: The Political Economy of International Trade

Which of the following multilateral agreements was established under U.S.leadership in 1947,with the objective to liberalize trade by eliminating tariffs,subsidies,import quotas,and the like?

Correct Answer
verified

Give a brief description of the origin,functions,and successes of GATT from 1947 to 1979,before protectionist trends gained momentum across the world.

Correct Answer
verified
Under U.S.leadership,the GATT was establ...
View Answer

Import tariffs increase the overall efficiency of the world economy.

Correct Answer
verified

According to Krugman,the ideal way for a country to respond,when the foreign competitors of its companies are already being supported by government subsidies,is probably not to engage in retaliatory action,but to:

Correct Answer
verified

Antidumping duties are often called _____ duties.

Correct Answer
verified

Tariffs are the oldest instrument of trade policy.

Correct Answer
verified

In most cases,tariffs are placed on imports to protect domestic producers from foreign competition by raising the price of imported goods.

Correct Answer
verified

Which of the following best explains the reason for rise in protectionist pressures around the world during the 1980s?

Correct Answer
verified

Which of the following is a major reason why many economists remain critical of the infant industry argument?

Correct Answer
verified

One of the reasons why protectionist pressures arose around the world during the 1980s was:

Correct Answer
verified

The two US agencies that deal with antidumping complaints are:

Correct Answer
verified

The main effect of the Uruguay Round Agreement on agriculture sector was:

Correct Answer
verified

Government intervention can be self-defeating because it tends to protect the inefficient rather than help firms become efficient global competitors.

Correct Answer
verified

Which of the following industries was the first to be targeted for reform under WTO regulations governing foreign direct investment?

Correct Answer
verified

Correct Answer
verified

Which of the following is true about tariffs?

Correct Answer
verified

Correct Answer
verified

The Buy America Act specifies that government agencies must give preference to American products when putting contracts for equipment out for bid unless the foreign products have a significant advantage.

Correct Answer
verified

Explain with an example the administrative trade policies used by the governments in addition to the formal instruments of trade policy.

Correct Answer
verified
In addition to the formal instruments of...
View Answer

The 1995 Uruguay agreement that established the WTO also contained an agreement to protect intellectual property.

Correct Answer
verified

Exam 7: The Political Economy of International Trade

Which of the following multilateral agreements was established under U.S.leadership in 1947,with the objective to liberalize trade by eliminating tariffs,subsidies,import quotas,and the like?

Correct AnswerverifiedShow Answer

Give a brief description of the origin,functions,and successes of GATT from 1947 to 1979,before protectionist trends gained momentum across the world.

Correct AnswerverifiedUnder U.S.leadership,the GATT was establ...View AnswerShow Answer

Import tariffs increase the overall efficiency of the world economy.

Correct AnswerverifiedShow Answer

According to Krugman,the ideal way for a country to respond,when the foreign competitors of its companies are already being supported by government subsidies,is probably not to engage in retaliatory action,but to:

Correct AnswerverifiedShow Answer

Antidumping duties are often called _____ duties.

Correct AnswerverifiedShow Answer

Tariffs are the oldest instrument of trade policy.

Correct AnswerverifiedShow Answer

In most cases,tariffs are placed on imports to protect domestic producers from foreign competition by raising the price of imported goods.

Correct AnswerverifiedShow Answer

Which of the following best explains the reason for rise in protectionist pressures around the world during the 1980s?

Correct AnswerverifiedShow Answer

Which of the following is a major reason why many economists remain critical of the infant industry argument?

Correct AnswerverifiedShow Answer

One of the reasons why protectionist pressures arose around the world during the 1980s was:

Correct AnswerverifiedShow Answer

The two US agencies that deal with antidumping complaints are:

Correct AnswerverifiedShow Answer

The main effect of the Uruguay Round Agreement on agriculture sector was:

Correct AnswerverifiedShow Answer

Government intervention can be self-defeating because it tends to protect the inefficient rather than help firms become efficient global competitors.

Correct AnswerverifiedShow Answer

Which of the following industries was the first to be targeted for reform under WTO regulations governing foreign direct investment?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is true about tariffs?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The Buy America Act specifies that government agencies must give preference to American products when putting contracts for equipment out for bid unless the foreign products have a significant advantage.

Correct AnswerverifiedShow Answer

Explain with an example the administrative trade policies used by the governments in addition to the formal instruments of trade policy.

Correct AnswerverifiedIn addition to the formal instruments of...View AnswerShow Answer

The 1995 Uruguay agreement that established the WTO also contained an agreement to protect intellectual property.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
Under U.S.leadership,the GATT was establ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
In addition to the formal instruments of...
View Answer

Correct Answer
verified