International Business Chapter 7

Which of the following is a provision of the Uruguay Round Agreement?

Barriers on trade in textiles were to be significantly reduced over 10 years.

Which of the following is an argument against embracing strategic trade policy?

It is certain to be captured by special-interest groups within the economy, which will distort it to their own ends.

The WTO's Agreement on which of the following is an attempt to narrow the gaps in the way intellectual property rights are protected around the world and to bring them under common international rules?

Trade-Related Aspects of Intellectual Property Rights (TRIPS)

A charge of 15-20% was levied by the government of Cadmia on the value of automobile accessories imported from a neighboring country. This increased the price of those imported car accessories for the consumers in Cadmia. Which of the following instruments of trade policy is being used by the government of Cadmia?

ad valorem tariff

Which of the following has been excluded from the agenda for the Doha Round of WTO talks that began in 2001?

attempts to tie trade to labor standards in a country

Maroji is a major exporter of dairy products. Mipon is a major exporter of heavy machinery but also has a sizeable domestic dairy industry. Since it imports a sizeable amount of heavy machinery from Mipon, Maroji, at the request of Mipon, limited the amount of dairy products it exports to Mipon each year. This is an example of

voluntary export restraint (VER).

Dumping takes place when foreign producers

eliminate competition by subsidizing prices in a foreign market with home market profits and eventually raising prices to earn substantial profits.

Maroji, a developing country, has a potential comparative advantage in manufacturing electronic goods but is unable to compete with China, at least for the near future. Maroji's predicament is best explained by the

infant industry argument.

Which of the following is considered to be the ultimate objective of antidumping policies?

protecting domestic producers from unfair foreign competition

The country of Nunrovia imposes a fixed charge of $3 per barrel of oil imported into the country. Which of the following instruments of trade policy is used by Nunrovia?

specific tariff