Chapter 7 assignment

export

Goods that are taxed as they ship out of a country have a __________ tariff

services

Member nations hoped that the WTO would be a facilitator of future trade deals especially in the area of _____________.

enforcement

The WTO (world trade organization) was more successful than the GATT because the WTO has _________ methods that make it more effective

infant industry

The oldest argument for government intervention in trade where developing nations must protect their domestic industries until they are ready to compete globally is the ___________ argument

true

True or false: Governments do not always act in the national interest when intervening in the economy.

tariffs

What instrument of trade policy has been used the longest?

quantity

import quotas are based on the __________ of the good

greater

During the 1980s, the trend was for ___________ protectionism around the world.

higher than

Tariff rates on agricultural products tend to be ___________ tariff rates on a manufactured good.

protecting jobs and industries

What is considered the most common political argument for government intervention in foreign trade?

less innovation in the world economy

What is likely to happen in the absence of a multilateral agreement in the international trading system?

free

_________ trade is the economic policy of not discriminating against exports to or imports from foreign countries.

Tariff barriers

____________ constrain a firm's ability to export its products by raising the price of the exported product, which could put the firm at a competitive disadvantage with domestic firms in that country.

dynamic

Based on the theories of Ricardo and Smith, the consequences of free trade include _____________ economic gains in terms of economic growth and wealth creation.

ban

During the 1970s, Congress did not allow US industries to export crude oil production. This action is an example of an export __________

local content requirement

In order to win a contract from Mexico, QVB Autos Manufacturing must make 65% of the component parts for their automobiles in Mexico. This is an example of a ____________

economic

Strategic trade policy suggests an ___________ justification for government intervention in trade

the government

Subsidies are a form of payment that is provided by ____________

free

The strategic trade policy argument may look good in theory, but in practice it may be unworkable. As a result, the case for ____________ trade may come to the forefront.

trust

Unrestricted free trade is impossible if there is a lack of _________ between nations

voluntary export restraints, import quotas, subsidies

What are three main instruments of trade policy?

they raise the cost of exporting products, quotas limit the ability to serve a country from outside locales

What are two ways trade barriers hamper a firm's productive activities?

industries

When governments intervene in foreign trade, they often claim they are protecting ____________ from unfair foreign competition.

more

As a result of the Doha Round, _____________ countries are entering into multilateral and bilateral trade agreements.

reducing tariffs on manufactured goods, reducing agricultural subsidies, reducing tariffs on industrial goods

The Uruguay Round started in 1986 and eventually provided for which three provisions?

Japan

The economic success of ___________ put a strain on the WTO during the 1980s and promoted protectionism measures

administrative

Governments implement ____________ trade policies that are designed to make it difficult for imports to enter a country.

multilateral trade agreements

In response to the apparent failure of the current Doha Round, many nations have implemented __________

2016, Brexit

In the year ______, Britain withdrew from the European Union following a national referendum known as __________

free trade

When the government does not use quotas, taxes or other means to restrict what its citizens can buy from or sell to another country, it is called _______________

Britain

Which country was the first to officially follow a policy of free trade in the mid 1800s?

Ricardo

Which economist was a key figure in the early free trade movement in Great Britain?

local content requirement

Evan works in a country in which the government has stated that 45% of all goods must be produced domestically. What type of requirement does this country have in place?

interest groups

Krugman argues that strategic trade policy should not be embraced because many times governments are influenced by politically important ___________ to intervene in the economy.

antidumping

Sergei believes that a Japanese-based company is selling digital cameras well-below market costs in the United States and thereby gaining all of the business. He plans to report this to the Commerce Department who can examine the case based on US ____________ policies

compete globally

The infant industry argument for trade intervention states that developing countries need to support new industries until they are strong enough to ___________

trade

The main objective of GATT (general agreement on tariffs and trade) was to liberalize _________ restrictions

decrease

The protection of intellectual property has becoming increasingly important to the WTO. The basis for this is that without this protection, the incentive for innovation would ______________ and economies would suffer.

establish anti-dumping restriction

What can be used to target competitors supported by subsidies who are selling goods at prices that are below their costs of production?

import quota

A _________ is a type of trade restriction that sets a physical limit of the quantity of a product that can be imported in to the country in a set period of time?

imports or exports

A tariff is a tax levied on ___________

protectionism

Rising pressures for ____________ lead to ongoing GATT negotiations via the Uruguay Round.

administrative

Government implement _____________ trade policies that are designed to make it difficult for imports to enter a country

antidumping policy

What policy is intended to protect domestic producers from foreign competitors who sell goods in foreign markets below their costs of production?

The Uruguay round

Which round of GATT negotiations provided enhanced protection for intellectual property and significantly reduced barriers on trade in textiles?