Chapter 06 The Political Economy of International Trade
1. (p. 206) A situation where a government does not attempt to restrict what its citizens can buy from another country or what they can ll to another country is known as free trade. TRUE
5. (p. 208) By lowering production costs, subsidies help domestic producers compete against foreign imports and gain export markets. TRUE
8. (p. 211) Unlike other trade policies, local content regulations tend to benefit consumers and not producers. FALSE
17. (p. 217) The infant industry argument is the latest argument for government intervention in trade. FALSE
18. (p. 218) Strategic trade policy suggests that a government should u subsidies to support promising firms that are active in newly emerging industries. TRUE
19. (p. 218) GATT has not recognized the infant industry argument as a legitimate reason for protectionism. FALSE
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20. (p. 219) Krugman has suggested that trade policy designed to retaliate against another country's trade policy would hurt the citizens of both countries. TRUE
21. (p. 220) Governments do not always act in the national interest when they intervene in the economy; politically important interest groups often influence them. TRUE
23. (p. 222) A key goal of the 1986 Uruguay Round was to extend GATT to cover trade in rvices. TRUE
24. (p. 222) During the 1980s and early 1990s, the world trading system erected by the GATT gained momentum as protectionist demands generally decread across the world. FALSE
25. (p. 223) The World Trade Organization was created as part of the Uruguay Round. TRUE
26. (p. 223) The WTO does not have the power to impo trade sanctions. FALSE
27. (p. 224) To date, the WTO's policing efforts have been a major failure. FALSE
28. (p. 225) A key issue in the Millennium Round of the WTO was to reduce barriers to
cross-border trade in agricultural products. TRUE罗平油菜花海
29. (p. 226) Human rights activists e WTO rules as outlawing the ability of nations to stop imports from countries where child labor is ud or working conditions are hazardous. TRUE
30. The WTO has the ability to force any member nation to take an action to which it is oppod. F
31. (p. 227) The majority of antidumping actions are concentrated in just a few industries. TRUE
treasured32. (p. 227) WTO rules do not allow countries to impo antidumping duties on foreign goods that are being sold cheaper than at home or below their cost of production, even when domestic producers can show that they are being harmed. FALSE
34. (p. 228) Free trade in agriculture could jump-start economic growth among the world's poorer nations and alleviate global poverty. TRUE
35. (p. 229) The TRIPS regulations oblige WTO members to grant and enforce patents lasting at least 20 years and copyrights lasting 50 years. TRUE
36. (p. 229) Inadequate protections for intellectual property reduce the incentive for innovation. T
38. (p. 233) Tariff barriers lower the costs of exporting products to a country. FALSE
39. (p. 233) The threat of antidumping action limits the ability of a firm to u aggressive pricing to gain market share in a country. TRUE
40. (p. 233) To conform to local content regulations, a firm may have to locate more production activities in a given market than it would otherwi. TRUE
42. (p. 206) Which of the following is not one of the main instruments of trade policy?
A. Tariffs
B. Credit portfolios
C. Local content requirements
D. Administrative policies
43. (p. 207) In recent decades, tariff barriers have been _____ while non tariff barriers have been _____. A. Falling, rising B. Rising, falling
46. (p. 207) Tariffs do not benefit
A. Consumers
B. Domestic producers
C. Governments
D. Domestic firms
47. (p. 207) All of the following are true of tariffs, except
A. They reduce the revenue for the government
B. They can be levied as a proportion of the value of the imported good
C. They can be levied as a fixed charge for each unit of a good imported
D. They impo significant costs on domestic consumers
56. (p. 210) A quota rent is
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A. A quota on trade impod by the exporting country
B. Levied as a fixed charge for each unit of a good imported
C. Levied as a proportion of the value of the imported good
D. The extra profit producers make when supply is artificially limited by an import quota
57. (p. 210) Foreign producers typically agree to voluntary export restrictions becau
A. Their manufacturing capacity is limited
B. They can divert their exports to other countries and charge more for their products
C. They fear far more damaging punitive tariffs or import quotas might follow if they do not
D. They are required to by the World Trade Organization
58. (p. 210) Which of the following statements concerning a voluntary export restraint is not true?
A. It benefits domestic producers by limiting import competition
B. In most cas, it benefits consumers.
C. It rais the domestic price of an imported good
D. It is a variant of the import quota
65. (p. 216) If a government grants preferential trade terms to a country it wants to build strong relations with, the government is employing a policy
A. Of retaliation
B. Of human rights protection
C. To protect national curity
D. To further foreign policy objectives
67. (p. 218) According to the _____ argument, governments should temporarily support new industries until they have grown strong enough to meet international competition.
A. Retaliatory action
B. Human rights
C. Infant industry
D. Anti-dumping
68. (p. 218) _____ suggests that a government should u subsidies to support promising firms that are active in newly emerging industries.
A. The infant industry argument
B. Strategic trade policy
C. Retaliation policy
D. The national curity argument
70. (p. 220) The EU's Common Agricultural Policy is an example of a tax policy designed to
A. Benefit consumers
B. Benefit taxpayers开学第一课安全
C. Benefit special interest politics
D. Benefit free trade in a developed country
72. (p. 222) Which of the following is not a reason for the pressure for greater protectionism that occurred during the 1980s and early 1990s?
A. The growing U.S. trade surplus with Japan strained the world trading system
B. Japane economic success strained the world trading system
C. The persistent trade deficit in the U.S. strained the world trading system
D. Many countries found ways to get around GATT regulations
73. (p. 222) In the 1986 Uruguay Round, GATT members sought to write rules for promoting all of the following except
A. Intellectual property protection
B. Agricultural subsidies
C. GATT's monitoring and enforcement mechanisms
D. GATT rules to cover trade in rvices
74. (p. 223) Until 1995, GATT rules applied to all of the following, except
图纸标题栏A. Manufactured goods
B. Services
C. Textiles
D. Agricultural products
75. (p. 223) According to the 1986 Uruguay Round _____ was to be created to implement the GATT agreement.
A. World Trade Organization
B. International Monetary fund
C. United Nations
D. World Bank
76. (p. 224) After the Uruguay Round of GATT extended global trading rules to cover trade in rvices, the first two industries targeted for reform by the WTO were
A. Textiles and technology
B. Telecommunications and financial rvices
C. Automotives and aerospace
D. Agriculture and consulting rvices
77. (p. 225) The Millennium Round ended in 1999 with
A. A successful record on agricultural products
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B. A new agenda for the next round focusing on financial rvices
C. No agreement on the reduction of barriers to cross-border trade in agricultural products and trade and investment in rvices
D. A decision to avoid FDI
78. (p. 226) Which of the following is not a reason why WTO is being criticized by tho opposing free trade?
A. Its trade laws allow imports from low-wage countries and result in a loss of jobs in
high-wage countries
B. Its rules outlawing the ability of nations to stop imports from countries where working conditions are hazardous
C. The adver impact that some of its rulings have had on environmental policies
幸拼音D. Its lack of ability to force any member nation to take an action to which it is oppod.
80. (p. 228) The WTO argues that by removing all tariff barriers and subsidies to agriculture all of the following would occur, except
A. The overall level of trade would increa
B. There would be overproduction of products that are heavily subsidized
C. Prices would fall for consumers
D. Global economic growth would ri
84. (p. 233) Identify the incorrect statement pertaining to trade barriers.
A. They rai the costs of exporting products to a country
B. They may put a firm at a competitive advantage to indigenous competitors
C. They may limit a firm's ability to rve a country from locations outside of that country
D. To conform to local content regulations, a firm may have to locate more production activities in a given market than it would otherwi
