St. Clair College

IBM 230

1)Typically, the average country is better off because of international trade, but it is a zero sum gain meaning there are winners and losers. The winners are those involved with a product that is in high demand by foreign markets, while the losers are        .

2. Which of the following is an expected effect of a tariff or a nontariff barrier (NTB) on a product?
3. Diverse sourcing and                          will be the key to building stronger, smarter supply chains and ensuring a lasting recovery.
4. What organization brought major reductions in customs duties, quotas and other measures that previously inhibited cross-border movement of merchandise?
5. One of the reasons protectionists and government officials may favor using a quota instead of a tariff is.
6. Which of the following is true of intra-industry trade?
7. An international trade summit is held in Geneva, Switzerland. The purpose of the summit is to cooperatively develop policies that promote international trade. Representatives from 50 different countries attend the summit. One of the attendees represents a leading nation in the international merchandise trade. This attendee is most likely from which of the following countries?
8. If the Canadian government only allowed children's toys that are lead-free to be imported into the country, this would be viewed as a(n)                                                    

9. In regard to Covid-19 the wide range of possibilities for the predicted decline is explained by the unprecedented nature of this health crisis and the uncertainty around its precise economic impact. But the good news is WTO economists believe the decline will not exceed the trade slump brought on by the global financial crisis of 2008-0

10...... is a stipulated as a money amount per unit of import, such as dollars per ton of steel bars, or

dollars per eight-cylinder two-door sports car.

11. Which of the following has overseen global rules of government policy toward international trade since 1995?
12. Which of the following refers to a two-way trade in which a country both exports and imports the same or very similar products.
13. If there is something extra bad about local consumption of a product, then a tariff can be good for the country because                                                    

14. If the U.S. government only allowed so many jars of peanut butter to be allowed into its boarder from foreign producers than this would be considered a(n)                                                        

15.  “Poor” countries export raw materials such as cocoa, iron ore, and raw diamonds. "Rich" countries export – often to those same poor countries – more complex products such as chocolate, cars, and the finished jewels. If poor countries want to get rich, they should stop exporting their resources in raw form and concentrate on adding       to them. Otherwise, rich countries will get the lion’s share of the value and all the good jobs.
16. In what year was the WTO inaugurated?
17. Consider Finland, a Nordic country endowed with many trees for its small population. A classical economist would argue that, given this, the country should export wood, which Finland has done. By contrast, a traditional development economist would argue that it should not export wood; instead, it should add value by transforming the wood into paper or furniture.
18. In economic theory when economists write about                                        it assumes that countries will trade with other countries when they have different product and services to offer each other… the ideal is that one can specialize and sell their specialty.
19. Restricting imports into a small country by the government. Answer: cartel
20. The WTO covers services, intellectual property and investment issues as well as                                  >

21. Which of the following statements is true?
    • If new firms are struggling to obtain funds from underdeveloped financial markets, the most efficient policy solution would be to offer a production subsidy to these firms.
    • If the government's goal is to induce early production, even when the new firms are not cost- competitive by world standards, a barrier to the import of the product produced by these firms would be an ideal policy.
    • If young firms are struggling to retain their trained workers, then government should offer a subsidy to offset the costs of training workers.
    • If domestic firms do not supply at the world price, government should lower barriers to imports to spur domestic production.
22. wto replaced
23. Scale economies are said to be present when

24:                      is a market structure in which a large number of firms compete vigorously with each other in producing and selling different varieties of a basic product.

25: If a small country imposes a tariff on imported air conditioners, the world price of air conditioners will                            and the domestic price of motorcycles will                   .

26: Which of the following is NOT true of nontariff barriers to imports?