Trade Restrictions -- Chapter 7

_______ are specific duties representing a special tariff for punishing foreign firms engaged in dumping, which can be fairly substantial and stay in place for up to five years.

Countervailing duties

Which of the following groups most benefit from receiving subsidies?

Domestic producers

Established under U.S. leadership in 1947, which of the following was a multilateral agreement whose objective was to liberalize trade by eliminating tariffs, subsidies, import quotas, and the like?

General Agreement of Tariffs and Trade (GAAT)

_________ status allows countries to export goods to the U.S. under favorable terms.

Most favored nation

While _______ tariffs are levied as a fixed charge for each unit of a good imported, _____ tariffs are levied as a proportion of the value of the imported good.

Specific; ad valorem

Which of the following has taken over responsibility to arbitrate trade disputes and monitor the trade policies of member countries and resulted because of the Uruguay Round agreement?

World Trade Organization

In the context of international trade, ______ is defined as selling goods in a foreign market at a price below their costs of production or as selling goods in a foreign market at below their "fair" market price.

dumping

U.S. trade sanctions against Cuba, Libya, and Iran are examples of:

governments using trade policy to support their foreign policy objectives

A (n) ________ requires that some specific fraction of a good must be produced domestically.

local content requirement

At times, countries contend that it is necessary to protect industries such as those related to defense- aerospace, advanced electronics, and semiconductors-- because these industries are important for:

national security

China did not join the WTO until 2001, so historically the decision of whether to grant MFN status to China was a real one. The decision was made more difficult by the perception that China had a(n) _______.

poor human rights record

In 2006, several countries of the European Union and U.S. banned imports of Mattel toys with high levels of lead, manufactured in China. The underlying motive for such a move could be:

protecting consumers from unsafe products

Which of the following is perhaps the most common political argument for government intervention into the free flow of trade?

protecting jobs and industries from unfair foreign competition

A(n) ______ is a quota on trade imposed by the exporting country, typically at the request of importing country's government.

voluntary export restraint (VER)