Chapter 7 GLB

Which of the following policies is intended to protect domestic producers from foreign competitors who sell goods in foreign markets below their costs of production?

Antidumping policies

Which instrument of trade policy has been in use the longest?

tariffs

Protectionism measures in the agriculture industry encourage the overproduction of products which are then typically purchased by _____.

the government

As the text notes, unrestricted free trade is impossible if there is a lack of ____ between nations.

trust

What are three main instruments of trade policy?

voluntary export restraints import quotas subsidies

Which two groups are negatively impacted when an import tariff is enacted?

Foreign producers Consumers

Based on the economic analysis of tariffs, it can be said that they are (select two)

anti-consumer pro-producer

The infant industry argument has potential negative consequences, including

causing infant industries to lack efficiency.

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

decrease

If a country does not have protections in place for ______ property, it is likely that businesses will be less inclined to pursue innovation.

intellectual

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

more

Import quotas are based on the _____ of a good.

quality

The ultimate goal of the WTO is to reduce tariff rates to _____.

zero

In _____ Britain withdrew from the European Union following ____.

2016, Brixit

Which two groups are positively impacted when an import tariff is enacted?

Government Domestic producers

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

Less innovation in the world economy

Many Western countries imposed trade sanctions against ______ during the 1980s and 1990s to encourage the country to improve human rights policies.

South Africa

When supply of a product is artificially limited by an import quota, a producer receives extra profit that is known as _____.

quota rent

The net effect of high tariff barriers and subsidies on agricultural products is to _____ prices to consumers.

raise

What is NOT included in the Doha agenda?

raising tariffs on industrial services

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

subsidies

A self-imposed trade restriction on the quantity of a good that the exporting country is allowed to export to another country is called a(n)

voluntary export restraint.

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

False

How do import tariffs affect the overall efficiency of the world economy?

They reduce the efficiency.

True or False: The United States has imposed trade sanctions on other countries in order to protect and promote human rights.

True

True or false: Since countries are using the WTO to resolve disputes, it is an indication that the organization is successful in this responsibility.

True

True or false: GATT has NOT recognized the infant industry argument as a legitimate reason for protectionism. True false question.

false

A(n) _____ is a type of trade restriction that sets a physical limit on the quantity of a product that can be imported into the country in a set period of time.

import quota

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

multilateral trade agreements

The WTO will continue to work to ______ markets because this will lead to an increase in world income, including an increase in income to developing nations.

open

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.

decrease

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