Chapter 9 Quiz example #44864

Free trade occurs when governments 1. exert minimal influence on the export and import decisions of private firms 2. enact "managed trade" policies 3. intervene to ensure that domestic firms receive an equitable share of the market 4. control imports to minimize domestic job losses

All of the following are considered NTBs EXCEPT local purchasing requirements public sector procurement policies numerical export controls ad valorem tariffs

What government program can allow firms to decrease, delay, or eliminate customs duties? foreign trade zone economic development incentives export financing subsidies

About how many U.S. jobs are likely to be lost as a result of the U.S. steel tariffs? Correct Answer 500,000 250,000 50 million none

Economic development programs mainly focus on 1. Getting loans from the International Monetary Fund 2. Asking for aid from other nations 3. Export promotion and import substitution strategies 4. Government identification and support of key industries critical to a nation's future

You are importing fruit into the U.S. and you pay a tariff based on the weight of the shipment. You are paying a(n) ______ tariff. specific ad valorem transit compound

The National Bank of Ethiopia often makes it difficult for importers to obtain scarce foreign? exchange, although? state-owned enterprises or firms controlled by the ruling party normally have no such problems. This is an example of what type of?non-quantitative NTB? Restricted access to distribution networks Regulatory controls Currency controls Local-purchase requirements

According to _______, special interest groups often dominate the general interest on any given issue because they are willing to work harder for laws favorable to their interests than the public is willing to work against those laws unfavorable to its interest. Industrial Policy Public Choice Analysis Strategic Trade Theory Maintenance of Jobs Argument

When using tariff rate quotas, governments usually impose over-quota tariffs that are moderately low moderately high extremely low extremely high

The U.S. Trade Representative is responsible for all of the following EXCEPT gathering data on trade leading all U.N.-related negotiations coordinating trade policies with other U.S. agencies acting as president's spokesperson on trade issues

Firms sometimes believe that foreign competitors gain an unfair advantage due to which of the? following? Resources Economic status Location Government policies

If you oppose ______, you will likely argue that ______. 1. industrial policy; governments, not the free market, should determine which sectors succeed and fail 2. anti-cabotage laws; the government doesn't need to support basic research 3. industrial policy; the free market, not governments, should determine which sectors succeed and fail 4. anti-cabotage laws; the private sector doesn't always support basic research

U.S. tariffs on steel will mostly likely cause net job losses job losses in the U.S. steel industry job gains in industries that use steel as an input net job gains

Suppose the U.S. government has has decided to provide subsidies to its steel producers. At the same time, the government imposes tariffs on steel imports. What will happen to the price of steel in the U.S.? Unclear stay the same increase decrease

Suppose the U.S. increases tariffs on tires imported from China. As a result, the equilibrium price for American-made tires will fall stay the same rise, then fall rise

All of the following are examples of NTBs that hinder trade in Africa EXCEPT high tariffs high transaction costs costly licensing requirements lack of investment in trade associations

Company A sells its computers for? US$650 domestically, but for? US$300 in foreign markets. This is an example? of dumping monopoly free trade Countervailing duty