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WorksheetsIBI101- Political economy in international trade
Total questions: 15
Worksheet time: 15mins
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
According to the _____ argument, governments should temporarily
support new industries until they have grown strong enough to meet international competition.
retaliatory action
human rights
infant industry
antidumping
According to the strategic trade policy argument:
government intervention is not required cause firm can borrow money from the capital markets to finance the required
investments.
selling goods in a foreign market at below their fair price is legally and ethically justified.
government support can help domestic firms overcome the first- mover advantages enjoyed by foreign competitors
a government should use subsidies to support promising firms
According to the 1986 Uruguay Round, the............. implement the GATT agreement.
World Trade Organization
International Monetary Fund
United Nations
World Bank
The WTO argues that removing tariff barriers and subsidies in the
agricultural sector could:
protect agriculture farmers in developed nations
llower the overall level of agricultural trade.
lower prices to consumers
restrict global economic growth
TRIPS regulations oblige WTO members to all of the following
EXCEPT:
grant and enforce patents lasting for at least 20 years
grant and enforce copyrights lasting for 50 years
comply with the rules within 5 year for rich countries.
comply with the rules within 10 year for poorest countries.
