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18 Cards in this Set
- Front
- Back
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Tariffs are unambiguously pro-consumer and anti-producer.
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False |
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Specific tariffs are levied as a proportion of the value of the imported good.
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False |
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A subsidy helps domestic producers to compete against foreign imports.
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True |
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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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False |
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Unlike other trade policies, local content regulations tend to benefit consumers and not producers.
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False |
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Local content regulations provide protection for a domestic producer of parts by limiting foreign competition.
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True |
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A company that sells its product in a foreign market below the cost of production may be accused of dumping.
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True |
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Antidumping policies are designed to punish foreign firms that are engaged in dumping.
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True |
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What term refers to a situation in which a government does not attempt to restrict what its citizens can buy or sell to another country?
A. Tariffs B. Import quotas C. Free trade D. Subsidies |
C. Free trade
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Specific tariffs are:
A. levied as a proportion of the value of the imported good. B. government payment to domestic producers. C. in the form of manufacturing or production requirements of goods. D. levied as a fixed charge for each unit of a good imported. |
D. levied as a fixed charge for each unit of a good imported.
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Tariffs do not benefit:
A. consumers. B. domestic producers. C. governments. D. domestic firms. |
A. consumers.
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Which of the following observations about subsidies is true?
A. Government subsidies must be paid for, typically by taxing individuals and corporations. B. Subsidies are used to reduce exports from a sector, often for political reasons. C. Whether subsidies generate national benefits that exceed their national costs is debatable. D. Subsidies help foreign producers gain a competitive advantage over domestic producers. |
A. Government subsidies must be paid for, typically by taxing individuals and corporations.
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_____ is a direct restriction on the quantity of some good that may be imported into a country.
A. Import tariff B. Import quota C. Import subsidy D. Ad valorem tariff |
B. Import quota
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The Japanese government was pressurized by the U.S. government to place limits on the number of vehicles exported to the United States by Japanese automobile producers in 1981. This is an example of:
A. tariff rate quota. B. specific tariffs. C. voluntary export restraint. D. ad valorem tariff. |
C. voluntary export restraint.
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According to ____, some specific fraction of a good must be produced domestically.
A. import quotas B. voluntary export restraints C. local content requirements D. antidumping duties |
C. local content requirements
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The Netherlands exported tulip bulbs to almost every country inthe world except Japan. This was because in Japan, customs inspectors insisted on checking every tulip bulb by cutting it vertically down the middle. This is an example of which of the following trade barriers?
A. Export restraint B. Administrative trade policies C. Local content requirement D. Ad valorem |
B. Administrative trade policies
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_____ is variously defined as selling goods in a foreign market at below their costs of production or as selling goods in a foreign market atbelow their "fair" market value.
A. Export restraint B. Dumping C. Local content requirement D. Ad valorem |
B. Dumping
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In 1997, two South Korean manufacturers of semiconductors, LG Semicon and Hyundai Electronics, were accused of selling dynamic random access memory chips (DRAMs) in the U.S. market at below their costs of production. It was alleged that the firms were trying to unload their excess production in the United States. This is an example of:
A. ad valorem tariff. B. subsidy. C. dumping. D. import quota. |
C. dumping.
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