Question 1

The World Trade Organization (WTO) was created by the recently completed Uruguay Round of the GATT negotiations.According to the textbook, has the WTO gotten off to a good start or a poor start? Do you believe that the WTO will be effective in the long run? Why or why not?

Accepted Answer

According to the textbook, the early lif...

Question 2

Components of ___________ include tariffs, subsidies, import quotas, voluntary export restraints, local content requirements, administrative policies, and antidumping duties.

Accepted Answer

A)  trade policy
B)  ad valorem
C)  tradereconciliation
D)  sociocultural dimension
E)  national economic developmentF) A) and E)
G) D) and E)

Question 3

Specific tariffs are leveled as a proportion of the value of the imported good (for example, 5% of the value of a new car).

Accepted Answer

A) True 
 B)False

Question 4

Tariffs fall into two categories--

Accepted Answer

A)  specific tariffs and ad valorem tariffs.
B)  global tariffs and domestic tariffs.
C)  general tariffs and specific tariffs.
D)  flexible tariffs and ad valorem tariffs.
E)  domestic tariffs and GATTF) None of the above
G) B) and C)

Question 5

An import quota is a direct restriction on the quantity of some good that may be

Accepted Answer

A)  subsidized by a country.
B)  imported into a country.
C)  exported out of a country.
D)  produced in a country.
E)  qualified for tariff reliefF) A) and E)
G) C) and D)

Question 6

The ____________ was a multilateral agreement whose objective was to liberalize trade by eliminating tariffs, subsidies, import quotas, and the like.

Accepted Answer

A)  General Agreement of Tariffs and Trade
B)  World Trade Supervisory Authority
C)  United Nations
D)  International Trade Organization
E)  International Labour OrganizationF) All of the above
G) A) and B)

Question 7

In late 2001 the WTO launched a new round of talks at Doha.The goals of this round of talks were to ____________________________

Accepted Answer

A)  liberalize protection of intellectual property and reduce barriers to investment
B)  enhance the enforcement of the Paris Convention and allow global banking
C)  deregulation of transportation and the liberalizing of the textile market
D)  further protect intellectual property and reduce agricultural subsidies
E)  further liberalization of the global trade and investment frameworkF) D) and E)
G) A) and B)

Question 8

Consider the following scenario.The Netherlands exports tulip bulbs to almost every country in the world except Japan.The reason is that Japanese customs inspectors insist on checking every tulip bulb by cutting it down the middle (which destroys the bulb) .The insistence on the part of the Japanese to inspect the bulbs in this manner (which makes it impractical for the Netherlands to export to Japan)  is an example of a(n)

Accepted Answer

A)  administrative trade policy.
B)  ad valorem trade policy.
C)  contingent trade policy.
D)  supplemental trade policy.
E)  Plant protection LawF) C) and E)
G) A) and C)

Question 9

In a 1999 study, Howard Wall found that while the United States imported more than $499 billion in merchandise from countries outside NAFTA in 1996, it would have imported over $________ billion more if it had a policy of pure free trade.

Accepted Answer

A)  51
B)  864
C)  111
D)  396
E)  211F) A) and B)
G) C) and D)

Question 10

What is a subsidy? Provide some examples of the forms that subsidies take.How do subsidies help domestic producers?

Accepted Answer

A subsidy is a government payment to a d...

Question 11

In 1986 GATT members embarked on their eighth round of negotiations to reduce tariffs.The negotiations were referred to as the _________ Round (so named because they took place in this country) .

Accepted Answer

A)  German
B)  Australian
C)  Brazilian
D)  Uruguay
E)  QuebecF) D) and E)
G) A) and B)

Question 12

Consumers are benefited by quotas.

Accepted Answer

A) True 
 B)False

Question 13

__________ are designed to punish foreign firms that engage in dumping.

Accepted Answer

A)  Antidumping policies
B)  Counterdumping policies
C)  Statutory dumping policies
D)  Civil dumping policies
E)  Punitive dumping tariffsF) None of the above
G) A) and E)

Question 14

If _______ exist, a charge of "dumping" can be levied against a foreign firm.

Accepted Answer

A)  goods are being sold that do not meet local content requirements or goods are being sold that do not meet local quality standards
B)  goods are being sold at predatory prices or goods are being sold that do not meet local product safety standards
C)  goods are being sold without the consent of the host government or goods are being sold that do not meet local quality standards
D)  goods are being sold at below their cost of production or goods are being sold at below their "fair" market value
E)  goods are being sold at a price that domestic producers cannot match and workers are losing jobsF) D) and E)
G) A) and E)

Question 15

The World Trade Organization was created by the __________ of the GATT negotiations.

Accepted Answer

A)  Cyprus Round
B)  Canadian Round
C)  Norway Round
D)  Uruguay Round
E)  DohaF) D) and E)
G) A) and E)

Question 16

________ arguments challenges the rationale for unrestricted free trade found in the work of classic trade theorists such as Adam Smith and David Ricardo.

Accepted Answer

A)  Technological justification
B)  Sociocultural justification
C)  strategic trade policy
D)  Political justification
E)  National SecurityF) B) and C)
G) A) and C)

Question 17

The main gains from subsidies accrue to importers, whose international competitiveness is increased as a result of them.

Accepted Answer

A) True 
 B)False

Question 18

If Westvaco decided to produce paper in Spain, and the Spanish government stipulated that 50% of the component parts that went into Westvaco's paper must be produced locally, that requirement would be an example of a(n)

Accepted Answer

A)  ad valorem content requirement.
B)  international content requirement.
C)  specific content requirement.
D)  local content requirement.
E)  barter contentF) B) and E)
G) None of the above

Question 19

Tariffs increase the overall efficiency of the world economy because a protective tariff encourages domestic firms to produce products at home, in theory, which could be produced more efficiently abroad.

Accepted Answer

A) True 
 B)False

Question 20

What demands that some specific fraction of a good be produced domestically?

Accepted Answer

A)  International content requirement
B)  Local content requirement
C)  Specific content requirement
D)  Ad valorem content requirement
E)  WTO local content conventionF) A) and E)
G) A) and D)

Exam 6: The Political Economy of International Trade

What demands that some specific fraction of a good be produced domestically?

Correct Answer
verified

Tariffs increase the overall efficiency of the world economy because a protective tariff encourages domestic firms to produce products at home, in theory, which could be produced more efficiently abroad.

Correct Answer
verified

In a 1999 study, Howard Wall found that while the United States imported more than $499 billion in merchandise from countries outside NAFTA in 1996, it would have imported over $________ billion more if it had a policy of pure free trade.

Correct Answer
verified

________ arguments challenges the rationale for unrestricted free trade found in the work of classic trade theorists such as Adam Smith and David Ricardo.

Correct Answer
verified

If _______ exist, a charge of "dumping" can be levied against a foreign firm.

Correct Answer
verified

The World Trade Organization (WTO) was created by the recently completed Uruguay Round of the GATT negotiations.According to the textbook, has the WTO gotten off to a good start or a poor start? Do you believe that the WTO will be effective in the long run? Why or why not?

Correct Answer
verified
According to the textbook, the early lif...
View Answer

Tariffs fall into two categories--

Correct Answer
verified

Specific tariffs are leveled as a proportion of the value of the imported good (for example, 5% of the value of a new car).

Correct Answer
verified

Correct Answer
verified

In late 2001 the WTO launched a new round of talks at Doha.The goals of this round of talks were to ____________________________

Correct Answer
verified

In 1986 GATT members embarked on their eighth round of negotiations to reduce tariffs.The negotiations were referred to as the _________ Round (so named because they took place in this country) .

Correct Answer
verified

The ____________ was a multilateral agreement whose objective was to liberalize trade by eliminating tariffs, subsidies, import quotas, and the like.

Correct Answer
verified

What is a subsidy? Provide some examples of the forms that subsidies take.How do subsidies help domestic producers?

Correct Answer
verified
A subsidy is a government payment to a d...
View Answer

The World Trade Organization was created by the __________ of the GATT negotiations.

Correct Answer
verified

__________ are designed to punish foreign firms that engage in dumping.

Correct Answer
verified

The main gains from subsidies accrue to importers, whose international competitiveness is increased as a result of them.

Correct Answer
verified

If Westvaco decided to produce paper in Spain, and the Spanish government stipulated that 50% of the component parts that went into Westvaco's paper must be produced locally, that requirement would be an example of a(n)

Correct Answer
verified

Consumers are benefited by quotas.

Correct Answer
verified

Components of ___________ include tariffs, subsidies, import quotas, voluntary export restraints, local content requirements, administrative policies, and antidumping duties.

Correct Answer
verified

An import quota is a direct restriction on the quantity of some good that may be

Correct Answer
verified

Exam 6: The Political Economy of International Trade

What demands that some specific fraction of a good be produced domestically?

Correct AnswerverifiedShow Answer

Tariffs increase the overall efficiency of the world economy because a protective tariff encourages domestic firms to produce products at home, in theory, which could be produced more efficiently abroad.

Correct AnswerverifiedShow Answer

In a 1999 study, Howard Wall found that while the United States imported more than $499 billion in merchandise from countries outside NAFTA in 1996, it would have imported over $________ billion more if it had a policy of pure free trade.

Correct AnswerverifiedShow Answer

________ arguments challenges the rationale for unrestricted free trade found in the work of classic trade theorists such as Adam Smith and David Ricardo.

Correct AnswerverifiedShow Answer

If _______ exist, a charge of "dumping" can be levied against a foreign firm.

Correct AnswerverifiedShow Answer

The World Trade Organization (WTO) was created by the recently completed Uruguay Round of the GATT negotiations.According to the textbook, has the WTO gotten off to a good start or a poor start? Do you believe that the WTO will be effective in the long run? Why or why not?

Correct AnswerverifiedAccording to the textbook, the early lif...View AnswerShow Answer

Tariffs fall into two categories--

Correct AnswerverifiedShow Answer

Specific tariffs are leveled as a proportion of the value of the imported good (for example, 5% of the value of a new car).

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In late 2001 the WTO launched a new round of talks at Doha.The goals of this round of talks were to ____________________________

Correct AnswerverifiedShow Answer

In 1986 GATT members embarked on their eighth round of negotiations to reduce tariffs.The negotiations were referred to as the _________ Round (so named because they took place in this country) .

Correct AnswerverifiedShow Answer

The ____________ was a multilateral agreement whose objective was to liberalize trade by eliminating tariffs, subsidies, import quotas, and the like.

Correct AnswerverifiedShow Answer

What is a subsidy? Provide some examples of the forms that subsidies take.How do subsidies help domestic producers?

Correct AnswerverifiedA subsidy is a government payment to a d...View AnswerShow Answer

The World Trade Organization was created by the __________ of the GATT negotiations.

Correct AnswerverifiedShow Answer

__________ are designed to punish foreign firms that engage in dumping.

Correct AnswerverifiedShow Answer

The main gains from subsidies accrue to importers, whose international competitiveness is increased as a result of them.

Correct AnswerverifiedShow Answer

If Westvaco decided to produce paper in Spain, and the Spanish government stipulated that 50% of the component parts that went into Westvaco's paper must be produced locally, that requirement would be an example of a(n)

Correct AnswerverifiedShow Answer

Consumers are benefited by quotas.

Correct AnswerverifiedShow Answer

Components of ___________ include tariffs, subsidies, import quotas, voluntary export restraints, local content requirements, administrative policies, and antidumping duties.

Correct AnswerverifiedShow Answer

An import quota is a direct restriction on the quantity of some good that may be

Correct AnswerverifiedShow Answer

Correct Answer
verified

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
verified
According to the textbook, the early lif...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A subsidy is a government payment to a d...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
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