International Trade Barriers

 The US bans beef imports from Canada after a Mad Cow Disease outbreak there. This is an example of which type of barrier to trade?

• Standards
• Quota
• Subsidy
• Tariff

Government payments to a local supplier to reduce the supplier costs. This helps local businesses survive because it is getting direct aid from the federal government. What is this called?

• Balance of trade
• protectionism
• exchange rate
• subsidy

Limit of the amount (quantity) of a good that can be imported is called a(n): 

• Subsidy
• Quota
• Exports
• Appreciation 

A protective tariff is intended to protect the

• consumer from higher prices on foreign goods.
• consumer from higher priced goods produced within the country.
• manufacturer from higher prices on materials produced within the country.
• manufacturer or farmer from lower priced goods imported into the country.

All of these restrict international trade EXCEPT

• quotas
• subsidies
• embargoes
• trade deficits

Which statement BEST reflects the difference between tariffs and quotas?

• Tariffs raise prices on exports, while quotas set limits on imports.
• Tariffs raise prices on imports, while quotas set limits on exports.
• Tariffs raise prices on exports, while quotas set limits on exports.
• Tariffs raise prices on imports, while quotas set limits on imports.

Which relationship BEST illustrates a comparison of absolute advantage and comparative advantage?

• A country with an absolute advantage will always have a comparative advantage in producing products.
• A country with a comparative advantage can produce a greater output of a products than a country with an absolute advantage.
• A country with an absolute advantage can produce a product at a lower opportunity cost than a country with a comparative advantage in producing all products.
• A country with a comparative advantage can produce a product at a lower opportunity cost, even if another country has an absolute advantage in the production of all goods.

What are tariffs?

• political boundaries between nations
• military blockades of specific countries
• disputes between state governments over boundaries
• taxes on the import or export of goods from a country

An import quota is a

• tax on import quantities above the legal limit.
• way to increase tariff revenues for the exporting country.
• legal limit on the amount of a good that can be imported into a country.
• legal incentive for members of WTO to increase their exports of a good or service.

An embargo is  a complete ban on certain products coming in or leaving the country?

• True
• False