International Trade

What is the definition of Free Trade?

• A tax levied on imports

• Absence of barriers to the free flow of goods and services between countries

• A government payment to a domestic producer

• A direct restriction on the quantity of some good that may be imported into a country

What is the purpose of Subsidies in international trade?

• To compete against low-cost foreign imports

• To ban unsafe products

• To protect national security

• To further foreign policy objectives

What is the main objective of Import Quotas?

• To make it difficult for imports to enter a country

• To achieve political objectives

• To protect jobs and industries

• To restrict the quantity of imported goods

What is the purpose of Voluntary Export Restraints?

• To impose quotas on trade

• To gain export markets

• To restrict the quantity of imported goods

• To protect consumers

What is the Local Content Requirement in international trade?

• To achieve political objectives

• To protect jobs and industries

• To make it difficult for imports to enter a country

• To demand a specific fraction of a good be produced domestically

What is the purpose of Administrative Policies in international trade?

• To make it difficult for imports to enter a country

• To further foreign policy objectives

• To protect human rights

• To achieve political objectives

What is the definition of Dumping in international trade?

• A direct restriction on the quantity of some good that may be imported into a country

• A government payment to a domestic producer

• A tax levied on imports

• Selling goods in a foreign market below their cost of production

What is the main reason for the Infant Industry Argument?

• To protect jobs and industries

• To protect national security

• To help develop a viable competitive position

• To boost the overall wealth of a nation

What is the objective of Strategic Trade Policy?

• To protect human rights

• To ban unsafe products

• To help firms overcome barriers to entry into industries

• To achieve political objectives

What is the consequence of Strategic trade policies according to the text?

• Boost national income at the expense of other countries

• Further foreign policy objectives

• Ban unsafe products

• Protect jobs and industries