ECO 3250 Nontariff Barriers to Imports (BOOKS)

Simple calculations of the cost of protection relative to the size of the economy (GDP) can be made using

1/2 × Tariff rate × % reduction in import quantity × ImportvalueGDPImportvalueGDP.

Which on of the following is not one of the main ways used by governments to allocate import licenses?

By random selection from the general population

Which of the following represent ways by which domestic-content requirements create import protection?

Encouraging local producers to substitute foreign-made products for domestic products Banning products that do not meet the content rules

Governments typically legislate standards with the stated purpose of

addressing instance of market failure.

If a large country imposes an import quota and distributes the import licenses with minimal resource costs, then the effect on its net national well-being will _____ the effect experienced with an equivalent tariff.

approximate

Within the importing country, a quota alters the _____ the product being accorded protection.

available supply of

When a country secures a voluntary export restraint from an exporting country, it effectively sets up the exporting firms of that country as a

cartel

Government procurement practices can serve as nontariff trade barriers if they mandate that government funded purchases favor ___________products.

domestic

Mandates imposed by countries requiring that products sold inside their borders possess a specified minimum amount of domestic production value are called _____ requirements.

domestic-content

US actions against other countries under Section 301 have _____ since the early 1990s and the emergence of the WTO.

fallen off

An import license allocation method that involves almost no resource costs has them distributed

for free to importers.

As tariff rates have declined in industrialized countries and many developing countries, the use of non tariff barriers has

increased

The resolution of trade disputes through negotiations and diplomacy is _____ to be beneficial for the countries involved and the world as a whole.

likely

A _____ requirement in some countries stipulate that a specified percentage of a product sold domestically must be produced locally.

mixing

Compare to a tariff, an import quota gives governments _____ certainty that that quantity of imports will be restricted.

more

Estimates generated from a simple theory-based math expression suggest that each dollar of protected income costs the rest of society _____ than one dollar.

more

Any policy used by the government to reduce imports, other than a simple tariff on imports, is a _____ barrier.

non tariff

If WTO sponsored consultations do not resolve a dispute between two countries, the case goes before a

panel of experts.

For all domestic prices at or above the world price, the total supply within the quota-imposing country equals the domestic supply curve ____ the fixed quota quantity.

plus

A simple math expression for the calculation of the cost of protection indicates that a country's cost relative to its GDP is _____ related to its average tariff level.

positively

An import quota (or just quota) is a limit on the total _____ of imports of a product allowed into a country during a period of time.

quantity

Most countries view US actions under Section 301 with

resentment

Government purchases in many countries comprise a relatively _____ share of foreign made products.

small

The dispute settlement procedure under the WTO is much _____ than it was under the GATT.

stronger

Although standards are ostensibly enacted to enhance society's well-being, they may be written in a manner that makes compliance _____ for foreign producers.

tougher

One method of trade dispute resolution that is detrimental to the countries involved and the world as a whole entails

tougher

When the government of an importing country compels a foreign exporting country to restrict its exports, the trade barrier is called a(n) _____ export restraint.

voluntary

The effects of a quota imposed by a large country are the same as those from an equivalent tariff

with the exception of the disposition of the quota's price mark up.