IBI101- Political economy in international trade

Tariffs are unambiguously pro-consumer and anti-producer.

• True

• False

Export tariffs are far less common than import tariffs.

• True

• False

The World Trade Organization was created as part of the Uruguay

Round.

• True

• False

Which of the following is NOT one of the main instruments of trade

policy?

• Tariffs

• Credit Portfolios

• Local content requirement

• Administrative Policies

Specific tariffs are:

• levied as a proportion of the value of the

  imported good.

• government payment to domestic producers.

• in the form of manufacturing or production requirements of goods

• levied as a fixed charge for each unit of a good

  imported

By lowering production costs, _____ help domestic producers

compete against foreign imports.

• subsidies

• duties

• quotas

• tariffs

_____ is a direct restriction on the quantity of some good that may be

imported into a country.

• Import tariff

• Import quota

• Import subsidy

• Ad valorem tariff

The Japanese government was pressurized place limits on the number of vehicles exported to the United States by Japanese automobile producers in 1981. This is an example of:

• tariff rate quota

• specific tariff

• voluntary export restraint

• ad valorem tariff

According to the Buy America Act, if a company wishes to win a

contract from a U.S. government agency to provide some equipment,

it must ensure that at least 51 percent of the product by value is

manufactured in the United States. This is an example of:

• anti dumping duties

• import quotas

• voluntary export restraint

• local content requirements

In 1997, two South Korean manufacturers of semiconductors, LG

Semicon and Hyundai Electronics, were accused of selling dynamic

random access memory chips (DRAMs) in the U.S. market at below

their costs of production. It was alleged that the firms were trying to

unload their excess production in the United States. This is an

example of:

• dumping

• ad valorem tariff

• subsidy

• import quota