unit 9

Question 1

Non tariff barriers

Answer 1

Refers to any policy used by the government to reduce imports (other than a tariff)

Question 2

Non Tariff barriers - 3 direct effects

Answer 2

1. Limiting the quantity of imports
2. increasing the cost of getting imports into the market
3. creating uncertainty about the conditions of imports permission

Question 3

Major types of NTBs

Import Quota

Answer 3

limit on the total quantity of imports during a period of time, giving a limited number of licenses to import

Question 4

Major types of NTBs

import quote - reasons

Answer 4

• Ensure strict limitation of import quantity

- fives gov. officials grater power (admin, authority of licenses distribution)

Question 5

Major types of NTBS

Voluntary exports restrains (VERs)

Answer 5

• Quantitate limit on exports
• Government in the importing country complexs the foreign exporting to agree “VOLUNTARILY” to restraints its exports to its country

Question 6

Voluntary exports restrains (VERs)

Answer 6

works like:

import quota, except imposed by exporting rather then importing country

Question 7

Major types of NTBs

Government procurement

Answer 7

laws and government rules that favour local products when the government is the buyer

Question 8

Major types of NTBs

Answer 8

Import Quota

Voluntary exports restrains (VERs)

Government procurement

Local content and mixing requirements

Technical and product standards

Question 9

Major types of NTBs

Local content and mixing requirements

Answer 9

Require specific use of local labor, material or other products

Question 10

Major types of NTBs

Technical and product standards

Answer 10

• requirement of a certain quality for a product (for example for well-being, health, or safety reasons)
• Usually standards are more easily met by local products compared to imported products

Question 11

Major types of NTBs

Import licensing

Answer 11

requires importers to apply for and receive approval for intended imports

Question 12

Major types of NTBs

Import licensing - ways to allocate licenses

Answer 12

• fixed favourism
• auction
• resource-using procedure

Question 13

Major types of NTBs

Import policy and licensing procedure

Answer 13

1. categories of imports
2. special schemes for imports
3. obtaining export license
4. application for grant of import licenses for certain categories
5. territorial jurisdiction of import licensing authorites
6. licensing period, conditions and validation of import license

Question 14

Fixed favoritism:

Answer 14

the government simply assigns the licenses to firms and or individuals without competition, applications or negotiations.

Question 15

Auction

Answer 15

the govement can run an import license auction: selling import licenses on a completive basis to the highest bidders.

Question 16

Resource-using procedures:

Answer 16

the govement can insist that forms (and or individuals) that want to acquire licenses must compete for them in some way other than simple bidding or bribing.

Question 17

Main ways to allocate import licenses:

Answer 17

• Fixed-favortism
• Auction
• Resource-using procedures

Question 18

What does not generate tariff or tax revenue for the government

Answer 18

Product standards, domestic content and mixing requirements

Question 19

AMERICANS SECTION 301

Answer 19

unliteral pressure – gives the us president power to negotiate to eliminate “unfair trade practices” of foreign governments.

Question 20

Why protectionists and government officials may favor using quota instead of tariff: x1

Answer 20

A quota ensures that the quantity of imports is strictly limited: a tariff would allow the import quantity to increase if foreign producers cut their prices or if our domestic demand increases

Question 21

Why protectionists and government officials may favor using quota instead of tariff: x2

Answer 21

A quota gives government officials greater power. These officials often have administrative authority over who get import licenses under quota system, and they can use this power to their advantage.

Question 22

The Buy America Act of 1933

Answer 22

basic law that mandates that government-funded purchases favour domestic products.