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Ball State University INTB 265 Ch

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Ball State University

INTB 265

Ch. 7

1)_was a multilateral agreement established in 1947 whose objective was to liberalize trade by eliminating tariffs, subsidies, import quotas, and the like.

•             Asia-Pacific Economic Cooperation (APEC)

•             North American Free Trade Agreement (NAFTA)

•             General Agreement on Tariffs and Trade (GATT)

•             Smoot-Hawley Act

•             Trans Pacific Partnership (TPP)

 

2.            Foreign producers agree to         imposed by an exporting country because they fear more damaging punitive tariffs or import quotas might follow if they do not.

•             Voluntary export restraints

•             Tariff rate quotas

•             Quota rents

•             Export bans

•             Dumping

 

3.            When the management team reviewed its government contract on office furnishings, they noticed that in order to bid on the project, at least 44 percent of the value of the office furniture had to be produced in the United States. This stipulation is an example of a(n)

•             Antidumping policy

•             Voluntary export restraint

•             Administrative trade policy

•             Local content requirement

•             Ad valorem tariff

 

4.            In order to encourage the agricultural industry, the French government provided low- interest loans for the purchase of seeds and fertilizers. The government also gave cash grants and made tax reductions. Which instrument of trade policy is being used by the French government?

•             Tariffs

•             Voluntary export restraints

•             Subsidies

•             Local content requirements

•             Import quotas

 

5.            A foreign government was not enforcing its intellectual property rights, which resulted in massive copyright infringements. In turn, this was costing U.S. companies millions of dollars in lost sales revenues. To force the country to play by the rules, the United States threatened to impose trade sanctions on a range of imports from the country’s businesses. The underlying motive for intervention by the U.S government was

•             To protect national security

•             To further support foreign policy objectives

•             Retaliation

•             To increase the trade surplus in the US

•             To protect human rights

 

6.            How did the Smoot-Hawley Act affect employment?

•             It created more jobs domestically and abroad

•             It decreased the overall wage rate

•             It boosted job rates around the world

•             It did not have any effect on employment

•             It had a damaging effect on employment abroad

 

7.            High tariff barriers and subsidies in the agricultural industry ultimately lead to

•             The lack of overproduction of products

•             An increased volume of agricultural trade

•             Increased prices for consumers

•             Stronger competition from foreign suppliers

•             Lower overall prices for the end-user

 

8.            A tax of 32 cents is levied for each pair of eyeglasses imported into a nation. This is an example of

•             Quota rent

•             Specific tariff

•             Ad valorem tariff

•             Import quota

•             Local content requirement

 

9.            Italy has a direct restriction on the amount of metal products that may be imported into the country. Which instrument of trade policy does this reflect?

•             Voluntary import restraint

•             Tariff rate quota

•             Export ban

•             Import quota

•             Quota rent

 

10.          Some countries have a policy that entirely restricts the export of coffee products. This is called a(n)

•             Antidumping policy

•             Import quota

•             Administrative trade policy

 

•             Export ban

•             Voluntary export restraint