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
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
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. […]
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 […]
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 […]
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 […]
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 […]
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
QUESTION The Common Agricultural Policy (CAP) established by the European Union was designed to reduce prices of domestic produce and protect consumers from unfair premiums. Indicate whether the statement is true or false. ANSWER FALSE The CAP was designed to protect the jobs of Europe’s politically powerful farmers by restricting imports and guaranteeing prices. […]
QUESTION The main gains from subsidies accrue to importers, whose international competitiveness is increased as a result of these subsidies. Indicate whether the statement is true or false. ANSWER FALSE The main gains from subsidies accrue to domestic producers, whose international competitiveness is increased as a result.
