Which of the following is the pattern of imports and exports that occurs in the
ID: 2495392 • Letter: W
Question
Which of the following is the pattern of imports and exports that occurs in the absence of trade barriers?
A.
Normal trade relations
B.
Trade balance
C.
Trade surplus
D.
Free trade
E.
Most favored nation status
A(n) ________ is levied as a percentage of the stated price of an imported product.
A.
specific tariff
B.
transit tariff
C.
import quota
D.
ad valorem tariff
E.
compound tariff
For which of the following political motives do governments intervene in trade in order to ban certain defense-related goods from export to other nations?
A.
Protect its infant defense industries
B.
Preserve national security
C.
Protect national identity
D.
Respond to unfair trade practice
E.
Protect jobs
Western European plastic producers considered retaliating against Asian competitors whose prices were substantially lower in European markets than at home. Which of the following is this an example of?
A.
Cross border supply
B.
Import quota
C.
Compound tariff
D.
Subsidy
E.
Dumping
The General Agreement on Trade in Services (GATS) created during the Uruguay Round identifies four different forms that international trade in services can take. Which of the following is NOT one of those forms?
A.
Presence of natural resources
B.
Commercial presence:
C.
Agriculture subsidy
D.
Consumption abroad
E.
Cross-border supply
Which of the following is an additional tariff placed on an imported product that a nation believes is receiving an unfair subsidy?
A.
Countervailing duty
B.
Antidumping duty
C.
Ad valorem tariff
D.
Tariff quota
E.
Compound tariff
In 1980, the closing of U.S. carmakers' production facilities in the United States was creating a volatile anti-Japan sentiment among the population and the U.S. Congress. Fearing punitive legislation, the Japanese government and its carmakers decide to limit its automobile exports to the United States. Which of the following is this an example of?
A.
Tariff-quota
B.
Compound tariff
C.
Ad valorem tariff
D.
Voluntary export restraint (VER)
E.
Specific tariff
Which of the following has eliminated all tariffs and nontariff trade barriers on goods originating within North America?
A.
World Bank
B.
World Trade Organization
C.
Overseas Private Investment Corporation
D.
NAFTA
E.
International Monetary Fund
The creation of the ________ was perhaps the greatest achievement of the 1986 Uruguay Round.
A.
World Trade Organization
B.
World Health Organization
C.
International Monetary Fund
D.
Overseas Private Investment Corporation
E.
World Bank
A government may impose an import quota to protect its domestic producers by placing a limit on the amount of goods allowed to enter the country. Who are the winners of imposing such quotas?
A.
Consumers
B.
Exporters
C.
Companies relying on the importation of so-called intermediate goods
D.
Domestic producers that rely on the import of product subject to quotas
E.
Domestic producers
One of the most common instruments that government uses to promote trade with other nations is the establishment of a foreign trade zone. Which of the following is not an advantage of a free trade zone?
A.
Increase employment.
B.
Allow companies to conduct manufacturing operations free from taxes.
C.
Increase government revenue by applying additional import tariff.
D.
Merchandise is allowed to pass with lower customs duties.
E.
Establish a facility inside a free trade zone to reduce costs and time.
Consumers often end up paying more for products because of a lack of competition. Which of the following is a type of government intervention that leads to thisproblem?
A.
Cultural motives
B.
Protection of infant industries
C.
Job protection
D.
Protection of national identity
E.
Protection of national security
The United States has banned all trade and investment with Cuba since 1962. This is an example of which type of government political intervention?
A.
Gaining influence
B.
Protection from import competition
C.
National security protection
D.
Trade retaliation
E.
Exposing Cuba to new ways of life
According to the infant industry argument, a country's emerging industries need protection from international competition during their development phase until they become sufficiently competitive internationally. Which of the following represents a major consequence to this argument?
A.
Increase of country's export
B.
Preserve national security
C.
Increase country's reliance on imported goods
D.
Increase consumer choices
E.
Complacency toward innovation
Explanation / Answer
1. D. Free trade
2. D. ad valorem tariff
3. B. Preserve national security
4. E. Dumping
5. C. Agriculture subsidy
6. B. Antidumping duty
7. D. Voluntary export restraint (VER)
8. D. NAFTA
9. A. World Trade Organization
10. E. Domestic producers
11. C. Increase government revenue by applying additional import tariff.
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