CH 2 Flashcards
In the late 1990s, most of the countries of the world saw a slow down in the unprecedented and precipitous growth of their economies. However, _____ remained unaffected by this trend.
China
The _____ of the balance-of-payments statement is most likely to record all merchandise exports, imports, and services plus unilateral transfers of funds.
current account
Randall Smithe-Jones believes that protectionism is the only way to save the United Kingdom from outside competitors. He has seen small businesses go bankrupt because cheaper foreign goods have been more popular. The cell-phone manufacturing industry has just started in U.K and Smithe-Jones’ company is one of the first to try its hand at cell-phone manufacturing. Which of the following would probably be the argument that Smithe-Jones would use to persuade his government representatives that protectionism is still needed in the U.K.?
Protection of an infant industry.
A tax imposed by a government on goods entering at its borders is most accurately termed as a(n) _____.
tariff
A specific unit or dollar limit applied to a particular type of good is called a(n):
quota
The fundamental difference between quotas and import licenses is that:
import licenses have greater flexibility than quotas.
When the United States refuses to sell goods to Iran because of the perception that the country harbors radicals and terrorists, the refusal is most accurately referred to as a(n):
embargo
Tall Pine Plywood Company has just received a notice that a shipment of plywood (2 metric tons) has been rejected by Japanese customs because the knotholes commonly found on a plywood sheet are too large. Which of the following categories of nontariff barriers primarily checks such quality issues?
standards
_____ is a new nontariff barrier that was designed to prevent foreign producers from using predatory pricing.
Antidumping law
Which of the following is the most popular way to circumvent WTO guidelines and impose new duties?
antidumping duties for selling below cost
Ad valorem duties
tariff - based on percentage of the determined value of the imported good
specific duties
tariff based on weight or quantity
compound duty
tariff combining both specific and ad valorem - a tax per pound plus a percentage of the value
tariffs can be
arbitrary and discriminatory. people can retaliate
import license
limits quantities on case by case basis
a quota is a limit and you can do it until the limit is filled.
