Connect 7

How did the Chinese government respond when the U.S. government tried to pressure it to enforce its intellectual property laws?

China initially threatened to raise trade barriers.

Which two groups are negatively impacted when an import tariff is enacted? (Check all that apply.)

Consumers Foreign producers

Which of the following pose a threat to the world trading system? (Check all that apply.)

Election of Donald Trump Britain's withdrawal from the European Union

True or false: Strategic trade policy does not advocate for government intervention in international trade.

False

The economic success of _____ put a strain on the world trading system in the 1980s and promoted protectionism measures.

Japan

Tariff rates on ______ products are generally much higher than tariffs on manufactured products or services.

agricultural

At the end of the fiscal year, Jack's company sells their bicycles in Thailand at below what it costs to produce the bikes in order to unload excess inventory. This is an example of _____.

dumping

When manufacturers export a product to another country at a price either below the price charged in its home market or below its cost of production, as a way to get rid of excess product, it is called ______.

dumping

What can a country use to counter-act a country that uses subsidies to support an industry?

establish anti-dumping regulations

According to strategic trade policy, governments should use ______ to support development work aimed at commercializing target technologies.

subsides

Subsidies are a form of payment that is provided by _____.

the government

Japan imposed a quota on auto exports into the US as a result of pressure from the American government. This action is an example of a(n) _____.

voluntary export restraint