QUESTION Which of the following requires that some specific fraction of a good must be produced domestically? A. International allocation requirement B. Local content requirement C. Specific quota requirement D. Ad valorem portion requirement E. Domestic sales requirement ANSWER B
Date: September 3rd, 2020
QUESTION Which of the following statements is true about voluntary export restraints (VERs)? A. VERs benefit consumers by limiting import competition. B. VERs reduce the domestic price of an imported good. C. When imports are limited to a low percentage of the market by a VER, the price is bid up for that limited foreign […]
Date: September 3rd, 2020
QUESTION Which of the following specifies that U.S. government agencies must give preference to U.S. products when putting contracts for equipment out to bid unless the foreign products have a significant price advantage? A. Export Administration Act B. Helms-Burton Act C. Hawley-Burton Act D. Buy America Act E. Volcker Rule ANSWER D
Date: September 3rd, 2020
QUESTION Which of the following are bureaucratic rules designed to make it difficult for imports to enter a country? A. Voluntary export restraints B. Consumer regulations C. Subsidies D. Administrative trade policies E. Public sector regulations ANSWER D
Date: September 3rd, 2020
QUESTION In the Uruguay Round of the WTO, member countries sought to exempt trade in services from GATT rules. Indicate whether the statement is true or false. ANSWER FALSE Against the background of rising pressures for protectionism, in 1986 GATT members embarked on their eighth round of negotiations to reduce tariffs, the Uruguay Round. […]
Date: September 3rd, 2020
QUESTION 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 […]
Date: September 3rd, 2020
QUESTION Governments of developed nations are setting an example by unilaterally lowering their trade barriers. Indicate whether the statement is true or false. ANSWER FALSE Strong economic arguments support unrestricted free trade. While many governments have recognized the value of these arguments, they have been unwilling to unilaterally lower their trade barriers for fear […]
Date: September 3rd, 2020
QUESTION Which of the following is considered to be the ultimate objective of antidumping policies? A. Protecting consumers from high prices B. Preventing domestic firms from unloading their excess production in domestic markets C. Protecting domestic producers from unfair foreign competition D. Protecting consumers from substandard and hazardous products E. Preventing foreign products from entering […]
Date: September 3rd, 2020
QUESTION Trade barriers encourage firms to disperse their productive activities—design, production, and assembly—to foreign nations. Indicate whether the statement is true or false. ANSWER FALSE It may make sense for a firm to design and engineer its product in one country, to manufacture components in another, to perform final assembly operations in yet another […]
Date: September 3rd, 2020
QUESTION Which of the following is the most common political argument for government intervention in international trade? A. Decreasing the prices of products in the domestic market B. Promoting strategic trade policy C. Protecting jobs and industries from unfair foreign competition D. Improving efficiency of domestic labor E. Protecting human rights ANSWER C
Date: September 3rd, 2020
