Government Policy And International Trade

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Question 1

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Tariffs are generally pro-consumer and anti-producer.

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Question 2

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Export tariffs are far less common than import tariffs.

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Question 3

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Under a tariff rate quota, a higher tariff rate is applied to imports within the quota than those over the quota.

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Question 4

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Unlike other trade policies, local content regulations tend to benefit consumers and not producers.

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Question 5

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Local content regulations provide protection for a domestic producer of parts by limiting foreign competition.

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Question 6

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Antidumping policies are designed to punish foreign firms that are engaged in dumping.

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Question 7

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Antidumping policies vary drastically from country to country.

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Question 8

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Protecting industries deemed important for national security and retaliating against unfair foreign competition are economic arguments for government intervention.

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Question 9

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The infant industry argument is the latest argument for government intervention in trade.

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Question 10

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GATT has not recognized the infant industry argument as a legitimate reason for protectionism.

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Question 11

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Governments do not always act in the national interest when they intervene in the economy; politically important interest groups often influence them.

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Question 12

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Trade wars benefit countries with interventionist governments.

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Question 13

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During the 1980s and early 1990s, the world trading system erected by the GATT gained momentum as protectionist demands generally decreased across the world.

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Question 14

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The World Trade Organization was created as part of the Uruguay Round.

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Question 15

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The WTO does not have the power to impose trade sanctions.

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Question 16

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Antidumping actions are concentrated in certain sectors of the economy such as basic metal industries, chemicals, plastics, and machinery and electrical equipment.

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Question 17

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The TRIPS regulations oblige WTO members to grant and enforce patents lasting at least 20 years and copyrights lasting 50 years.

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Question 18

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One of the successful outcomes of the Doha Round negotiations has been that many nations have proceeded with bilateral free trade agreements.

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Question 19

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Tariffs on industrial goods remain higher than tariffs on services.

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Question 20

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Tariff barriers lower the costs of exporting products to a country.

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