WorksheetsTRADE BARRIE
Total questions: 50
Worksheet time: 30mins
What is the general term that describes any government policy or regulation that restricts international trade?
Trade barriers
Protectionism
Tariffs
Non-trade barriers
Why do most countries have trade restrictions?
To increase world output
To protect local products from foreign competition
To promote international cooperation
To reduce trade imbalances
What are the two main tools of protectionism policy?
Tariff barriers and non-trade barriers
Specific tariffs and ad valorem tariffs
Protection of domestic industries and revenue generation
Trade volume reduction and price increases for consumers
What is the purpose of tariffs?
To protect domestic industries
To generate government revenue
To correct trade imbalances
All of the above
Which type of tariff is imposed based on the value of the import?
Specific tariffs
Ad valorem tariffs
Compound tariffs
Mixed tariffs
What is the historical perspective of tariffs?
Tariffs have been a common feature of international trade for centuries
Tariffs were introduced after World War II
Tariffs have been eliminated in recent decades
Tariffs are a recent phenomenon
What organization succeeded the General Agreement on Tariffs and Trade (GATT)?
World Trade Organization (WTO)
European Single Market
North American Free Trade Agreement (NAFTA)
Uruguay Round
What are the pros of tariff reductions?
Boost global trade
Lower consumer prices
Promote economic growth
All of the above
What factors can influence tariff trends?
Political factors
Economic factors
Changes in leadership
All of the above
What factors can influence tariff trends?
Political factors
Economic factors
Changes in leadership
All of the above
How has the COVID-19 pandemic impacted tariffs?
Some countries have considered tariff adjustments to protect vital industries
Tariffs on medical supplies and equipment were temporarily reduced or eliminated
Tariffs have been completely eliminated worldwide
Developing countries have increased tariffs
The effective rate of protection is
value added with protection divided by value added without protection.
value added with protection.
value added without protection.
value added with protection minus value added without protection) divided by value added without protection.
The long-run social benefits of infant industry protection are more likely to be realized if
investors believe that tariff barriers are permanent.
investors believe that tariff barriers are transitory.
tariff barriers increase over time.
tariff barriers are replaced with quotas over time.
Which of the following is not a reason why the prospects for the further expansion of developing country commodity exports are likely to be limited?
Low income elasticities for these products.
Low likelihood of development of further synthetic substitutes.
Continued agricultural protection despite trade agreements.
Declining terms of trade.
Which of the following is a major argument of trade pessimists?
Increased productivity of developed country agriculture.
Increased efficiency in industrial use of raw materials.
Protectionism against labor-intensive manufactures.
All of the above.
Which of the following is a major argument of trade optimists?
Industrial policy can increase productivity of developing country manufacturing efficiency.
New synthetic substitutes are constantly being discovered and improved.
Developing country efficiency would improve with trade liberalization.
All of the above.
Which of the following is a nontariff barrier policy tool?
Sanitary regulations.
Average duties.
Phased liberalization.
Ad valorem tax.
Nontariff barriers
decrease foreign exchange earnings.
reduce the quantity of goods exported.
lower the effective price received for exports.
all of the above.
In most less developed countries, the initial target of import substitution is to promote domestic production of
consumer goods.
food and other agricultural goods.
capital goods.
manufactured intermediate goods.
Which of the following is not an argument in favor of export promotion over import substitution?
international competition compels domestic producers to become more efficient.
exposure to world markets provides greater opportunities to learn new technologies.
producing for export permits greater specialization and economies of scale.
outward-looking development promotes larger firms.
A large company such as McDonalds that has operations in more than one country.
Domestic Corporation
Multinational Corporation
Foreign Corporation
State Corporation
Some companies sell their product in overseas markets at a much lower price than their actual cost of producing. What is that product called?
Discounting
Dumping
Increase the price
Falling the price
Embargos:
ban trade with other countries
generate tax revenues for that country
hurt domestic producers
lower prices of goods
A new tax is added to pharmaceutical imports from the United Kingdom.
tariff
quota
embargo
Germany places a block on all imports from Sri Lanka
tariff
quota
embargo
Spain restricts all imports of automobiles from Germany
tariff
quota
embargo
The United Kingdom adds a tax on all fabric imported from Italy.
tariff
quota
embargo
France imposes a limit on Avocado imports from Mexico.
tariff
quota
embargo
Russia refuses to import goods from Moldova.
tariff
quota
embargo
The European Union added a new tax on all coffee imported from Colombia.
tariff
quota
embargo
Company XYZ produces cheese in Scotland and exports the cheese, which costs $100 per pound, to the United States. A 20% tax would require Company XYZ to pay the United States government $20 to export the cheese. This is a(n)...
Tariff
Quota
Embargo
In 2010, Mexico imposed a limit of 250,000 tons of sugar that could be imported into Mexico. This is a(n)...
Tariff
Quota
Embargo
In 1962, the United States prohibited all imports and exports to and from Cuba. This is a(n)...
Tariff
Quota
Embargo
In 2006, the United Nations Security Council unanimously
adopted a resolution to restrict the export to and the import from Iran on certain items and technology potentially related to nuclear weapons. This is a(n)...
Tariff
Quota
Embargo
Goods and services a country produces and sells to other countries
imports
exports
demand
supply
Goods and services brought in from other countries
supply
exports
imports
tariff
A tax on imports
tariff
import tax
supply
embargo
Which is an example of a tariff?
Japan is allowed to send as many electronic products to the U.S. as they want.
The U.S. freely trades with other countries with no restrictions.
A high tax is placed on all diamonds received from Africa.
