Question 1

If Apple won an order to sell 500 new minicomputers to Australia,but the Australian government stipulated that 20 percent of the component parts of the minicomputers it purchased must be produced in Australia,that stipulation would be an example of a(n) :

Accepted Answer

A)  voluntary export restraint.
B)  administrative policy.
C)  import quota.
D)  local content requirement.E) B) and C)
F) A) and B)

Question 2

Quotas benefit consumers the most.

Accepted Answer

A) True 
 B)False

Question 3

In 2006,several countries of the European Union and U.S.banned imports of Mattel toys with high levels of lead,manufactured in China.The underlying motive for such a move could be:

Accepted Answer

A)  protecting domestic businesses from unfair pricing.
B)  protesting the pricing of toys below their costs of production.
C)  protecting consumers from unsafe products.
D)  increasing the trade surplus of the U.S.E) B) and C)
F) A) and C)

Question 4

The biggest defenders of agricultural subsidies are the developed nations of the world.

Accepted Answer

A) True 
 B)False

Question 5

In recent decades,a fall in subsidies,quotas,and voluntary export restraints has been accompanied by a corresponding fall in nontariff barriers.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following statements regarding GATT is true?

Accepted Answer

A)  GATT attempted to liberalize trade restrictions in one go.
B)  In its early years,GATT was unsuccessful and hence was superseded by the WTO.
C)  GATT regulations failed as they were enforced by an unshared monitoring mechanism.
D)  Tariff reductions through negotiations were spread over eight rounds.E) B) and C)
F) A) and C)

Question 7

Tariffs cause damage to _____ because this group must pay more for certain imports.

Accepted Answer

A)  investors
B)  governments
C)  consumers
D)  producersE) All of the above
F) A) and D)

Question 8

Protecting consumers from "dangerous" products and furthering the goals of foreign policy are types of economic arguments for intervention.

Accepted Answer

A) True 
 B)False

Question 9

State the provisions that were formed after the completion of the Uruguay Round of talks.

Accepted Answer

The Uruguay Round contained the followin...

Question 10

According to _____,many developing countries have a potential comparative advantage in manufacturing,but new manufacturing industries cannot initially compete with well-established industries in developed countries.

Accepted Answer

A)  mercantilism
B)  comparative advantage theory
C)  product life-cycle theory
D)  infant industry argumentE) A) and D)
F) A) and B)

Question 11

The relationship between pollution and income levels follows a linear pattern.

Accepted Answer

A) True 
 B)False

Question 12

While _____ tariffs are levied as a fixed charge for each unit of a good imported,_____ tariffs are levied as a proportion of the value of the imported good.

Accepted Answer

A)  ground;ceiling
B)  ad hoc;nonconvertible
C)  posited;floating
D)  specific;ad valoremE) All of the above
F) B) and C)

Question 13

_____ arguments for government intervention into international trade are typically concerned with boosting the overall wealth of a nation.

Accepted Answer

A)  Economic
B)  Political
C)  Legal
D)  CommercialE) C) and D)
F) B) and C)

Question 14

The WTO's Agreement on _____ is an attempt to narrow the gaps in the way intellectual property rights are protected around the world and to bring them under common international rules.

Accepted Answer

A)  International Body on Intellectual Property (IBIP) 
B)  Court of Arbitration of Intellectual Property (CAIP) 
C)  Trade-Related Aspects of Intellectual Property Rights (TRIPS) 
D)  Intellectual Property Rights Enforcement and Resolution (IPER) E) None of the above
F) A) and C)

Question 15

Furthering the goals of foreign policy and advancing the human rights of individuals in exporting countries are examples of issues covered by _____ for government intervention.

Accepted Answer

A)  political arguments
B)  humanitarian arguments
C)  legal arguments
D)  economic argumentsE) None of the above
F) B) and C)

Question 16

Free trade in agriculture could help to jump-start economic growth among the world's poorer nations and alleviate global poverty.

Accepted Answer

A) True 
 B)False

Question 17

In general,what are the two paths of arguments for government intervention into the free flow of trade?

Accepted Answer

A)  Political and cultural
B)  Economic and legal
C)  Political and economic
D)  Legal and socialE) All of the above
F) B) and C)

Question 18

The two US agencies that deal with antidumping complaints are the:

Accepted Answer

A)  Economic Offences Wing and Conciliation Services.
B)  International Trade Commission and the Industry Council.
C)  Commerce Department and the International Trade Commission.
D)  Federal Trade Commission and the Economic Council.E) All of the above
F) B) and C)

Question 19

In the Uruguay Round of the WTO,member countries sought to exempt trade in services from GATT rules.

Accepted Answer

A) True 
 B)False

Question 20

Ad valorem tariffs reduce the cost of imported products relative to domestic products.

Accepted Answer

A) True 
 B)False

Exam 6: The Political Economy of International Trade

State the provisions that were formed after the completion of the Uruguay Round of talks.

Correct AnswerverifiedThe Uruguay Round contained the followin...View AnswerShow Answer

The WTO's Agreement on _____ is an attempt to narrow the gaps in the way intellectual property rights are protected around the world and to bring them under common international rules.

Correct AnswerverifiedShow Answer

While _____ tariffs are levied as a fixed charge for each unit of a good imported,_____ tariffs are levied as a proportion of the value of the imported good.

Correct AnswerverifiedShow Answer

Free trade in agriculture could help to jump-start economic growth among the world's poorer nations and alleviate global poverty.

Correct AnswerverifiedShow Answer

_____ arguments for government intervention into international trade are typically concerned with boosting the overall wealth of a nation.

Correct AnswerverifiedShow Answer

In recent decades,a fall in subsidies,quotas,and voluntary export restraints has been accompanied by a corresponding fall in nontariff barriers.

Correct AnswerverifiedShow Answer

Which of the following statements regarding GATT is true?

Correct AnswerverifiedShow Answer

Furthering the goals of foreign policy and advancing the human rights of individuals in exporting countries are examples of issues covered by _____ for government intervention.

Correct AnswerverifiedShow Answer

In general,what are the two paths of arguments for government intervention into the free flow of trade?

Correct AnswerverifiedShow Answer

If Apple won an order to sell 500 new minicomputers to Australia,but the Australian government stipulated that 20 percent of the component parts of the minicomputers it purchased must be produced in Australia,that stipulation would be an example of a(n) :

Correct AnswerverifiedShow Answer

The biggest defenders of agricultural subsidies are the developed nations of the world.

Correct AnswerverifiedShow Answer

The two US agencies that deal with antidumping complaints are the:

Correct AnswerverifiedShow Answer

The relationship between pollution and income levels follows a linear pattern.

Correct AnswerverifiedShow Answer

In the Uruguay Round of the WTO,member countries sought to exempt trade in services from GATT rules.

Correct AnswerverifiedShow Answer

In 2006,several countries of the European Union and U.S.banned imports of Mattel toys with high levels of lead,manufactured in China.The underlying motive for such a move could be:

Correct AnswerverifiedShow Answer

Ad valorem tariffs reduce the cost of imported products relative to domestic products.

Correct AnswerverifiedShow Answer

Quotas benefit consumers the most.

Correct AnswerverifiedShow Answer

Tariffs cause damage to _____ because this group must pay more for certain imports.

Correct AnswerverifiedShow Answer

Protecting consumers from "dangerous" products and furthering the goals of foreign policy are types of economic arguments for intervention.

Correct AnswerverifiedShow Answer

According to _____,many developing countries have a potential comparative advantage in manufacturing,but new manufacturing industries cannot initially compete with well-established industries in developed countries.

Correct AnswerverifiedShow Answer

Correct Answer
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The Uruguay Round contained the followin...
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While _ tariffs are levied as a fixed charge for each unit of a good imported,_ tariffs are levied as a proportion of the value of the imported good.

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