Chapter 10 Flashcards
Unlike the infant-industry argument, the industrialization argument for trade protection ________.
Select one:
a. stresses labor-intensive production methods despite high costs
b. emphasizes use of locally available raw materials for manufacturing inputs
c. requires independence from other countries
d. presumes that economic growth will occur even if domestic manufactured prices are not globally competitive
d. presumes that economic growth will occur even if domestic manufactured prices are not globally competitive
The group most likely to become involved in disputes concerning trade protectionism is consumers.
Select one:
True
False
False
Most countries have agreed on how to assess values when their customs agents levy tariffs. Which of the following best expresses this agreement?
Select one:
a. They should assess a value based on the expected final consumer sales price.
b. They should use the value of similar goods arriving at about the same time.
c. They should assess a value based on local costs to produce a similar product.
d. They should use the declared invoice price unless they doubt its authenticity.
d. They should use the declared invoice price unless they doubt its authenticity.
Governments sometimes prohibit operations of private companies, foreign or domestic, in some sectors because they feel these services should not be sold at a profit.
Select one:
True
False
True
A problem that can arise in using trade protectionism to develop international competitiveness for a domestic industry is that ________.
Select one:
a. a short product life cycle makes the industry quickly noncompetitive
b. the protecting countries lose too much revenue from import duties
c. it is difficult to identify industries that have a high probability of reaching competitiveness
d. assistance should be given only if entry barriers to new firms are very low
c. it is difficult to identify industries that have a high probability of reaching competitiveness
Which of the following statements is not true regarding the Vietnamese/U.S. trade dispute case over catfish?
Select one:
a. Overfishing has only occurred in the last fifty years or so, before that catfish would reproduce faster than people could catch and eat them
b. The bulk of the U.S. catfish industry is located in poor, Southern states
c. The bulk of the Vietnamese catfish industry is located in the relatively poor Mekong Delta
d. Increased technology and a rising world population are the two main causes of the increase in overfishing
e. Each of these statements is actually true, none are false
e. Each of these statements is actually true, none are false
The most common type of tariff is the export tariff.
Select one:
True
False
False
The argument for using import controls to promote exports is partially premised on the assumption that other countries will remove their import restrictions as a result.
Select one:
True
False
True
Successful trade retaliation is most likely achieved \_\_\_\_\_\_\_\_. Select one: a. by a small trading country b. on agricultural products c. by a large trading country d. on manufactured products
c. by a large trading country
What is the most likely reason that consumers rarely protest import restrictions that raise the prices they pay for a specific product?
Select one:
a. They reason that if they do something to hurt domestic employment for one product, the displaced workers will then do something that will hurt their own employment.
b. Typically, although the added costs to consumers for a given product are high in aggregate, they are fairly trivial for most individual consumers.
c. Many countries prohibit consumers to band together to influence political actions.
d. They reason that if the import restrictions are removed, the foreign producers will raise their prices to those of the domestic producers anyway.
b. Typically, although the added costs to consumers for a given product are high in aggregate, they are fairly trivial for most individual consumers.
All of the following are potential problems of using export controls EXCEPT which one?
Select one:
a. Prices go up in the country imposing the controls.
b. There is an incentive for other countries to develop production of their own.
c. There is more incentive for smuggling.
d. Domestic producers may have less incentive to increase output.
a. Prices go up in the country imposing the controls.
According to the optimum tariff theory, a foreign producer will most likely ________.
Select one:
a. assess a tax on goods shipped internationally based on a percentage of the goods’ value
b. ship highly taxed goods internationally on a per-unit basis
c. seek import tariffs by using the comparable access argument
d. lower its export prices if the importing country imposes an import tax on its products
d. lower its export prices if the importing country imposes an import tax on its products
An import tariff may be protective ________.
Select one:
a. only if it is on imports the country produces domestically
b. if it does not generate significant tax revenue for essential industries
c. if it serves primarily to restrict entry of hazardous materials
d. even though the importing country does not produce the product
d. even though the importing country does not produce the product
Developing countries have sometimes adopted policies to shift people out of agriculture and into industry by protecting manufactured production. One of the problems they have encountered is that ________.
Select one:
a. people have been too reluctant to leave rural areas to go to the cities
b. developed countries have retaliated with protection of products from the developing countries
c. demand for social and political services has increased excessively in the cities
d. food shortages have increased in rural areas because of worker shortages
c. demand for social and political services has increased excessively in the cities
Given the rise in globalization worldwide recently, the international system of government regulations is becoming far less complicated than it has been in the past.
Select one:
True
False
False
