QUESTION The act that allows Americans to sue foreign firms that use property in Cuba confiscated from them after the 1959 revolution is known as the: A. Frederick-Peterson Act. B. D’Amato-Perkins Act. C. Perkins-Dole Act. D. Helms-Burton Act. E. Godfrey-Milliken Act. ANSWER D
Date: September 3rd, 2020
QUESTION 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: A. help establish rules that minimize the use of trade-distorting subsidies. B. adopt the strategic trade policy as a […]
Date: September 3rd, 2020
QUESTION According to Krugman, which of the following best indicates the dangers of a strategic trade policy? A. Decrease in subsidies B. Decrease in protectionism C. Occurrence of a trade war D. Huge financial debts for the countries involved E. Occurrence of a global recession ANSWER C
Date: September 3rd, 2020
QUESTION A government should use subsidies to support promising firms that are active in newly emerging industries, according to: A. strategic trade policy. B. public policy. C. absolute advantage. D. product life-cycle. E. industrialization. ANSWER A
Date: September 3rd, 2020
QUESTION According to Paul Krugman, a country that attempts to use strategic trade policy to establish a domestic firm in a dominant position in a global industry, is most likely to: A. dominate the industry. B. move away from protectionism. C. provoke retaliation. D. incur huge financial debts. E. upset the special-interest groups within the […]
Date: September 3rd, 2020
QUESTION The economically damaging effects of the Great Depression were worsened in 1929 by the: A. First World War. B. U.S. stock market collapse. C. spread of communism through Europe. D. Cold War between the world’s superpowers. E. harvest failure in Great Britain and famine in Ireland. ANSWER B
Date: September 3rd, 2020
QUESTION Which of the following is an argument against embracing strategic trade policy? A. It hampers the chances of a country’s firms to effectively exploit the first-mover advantages. B. It is certain to be captured by special-interest groups within the economy, which will distort it to their own ends. C. It increases the prices of […]
Date: September 3rd, 2020
QUESTION Which of the following best explains the reason for the rise in protectionist pressures around the world during the 1980s? 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 […]
Date: September 3rd, 2020
QUESTION Antidumping actions seem to be concentrated in certain sectors of the economy such as basic metal industries (e.g., aluminum and steel), chemicals, plastics, and machinery and electrical equipment. Indicate whether the statement is true or false. ANSWER TRUE Antidumping actions seem to be concentrated in certain sectors of the economy such as basic […]
Date: September 3rd, 2020
QUESTION Dumping involves foreign producers: A. attempting hostile takeovers of domestic firms and usurping the available resources for production. B. indiscriminately exploiting the natural resources of a foreign country to create a later demand that can be met only by imports. C. eliminating competition by subsidizing prices in a foreign market with home market profits […]
Date: September 3rd, 2020
