ECO 305 Week 4 Quiz

7/21/2019 ECO 305 Week 4 Quiz

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ECO 305 Week 4 Quiz – Strayer

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Quiz 3 Cha%ter 5 an# &

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1. #he imp()iti(n (* a tari** (n imp(rted )tee+ *(r the h(me ,(untryre)u+t) in:

a. $mpr(in term) (* trade and ri)in (+ume (* trade b. 'iher )tee+ pri,e) and *a++in )tee+ ,(n)umpti(n,. "(er pr(*it) *(r d(me)ti, )tee+ ,(mpanie)d. 'iher unemp+(yment *(r d(me)ti, )tee+ (rker)

. Whi,h (* the *(++(in re*er) t( a market-)harin pa,t ne(tiated bytradin partner) t( m(derate the inten)ity (* internati(na+ ,(mpetiti(na. Order+y marketin areement

b. "(,a+ ,(ntent re2uirement),. $mp(rt 2u(tad. #rier pri,e me,hani)m

3. Supp()e the !nited State) and apan enter int( a (+untary ep(rtareement in hi,h apan imp()e) an ep(rt 2u(ta (n it) aut(maker). #he +are)t)hare (* the ep(rt 2u(ta) reenue e**e,t (u+d tend t( be ,aptured by:

a. #he !.S. (ernment b. apane)e aut(maker),. 7meri,an aut( ,(n)umer)d. 7meri,an aut((rker)

4. Supp()e the (ernment rant) a )ub)idy t( d(me)ti, pr(du,er) (* animp(rt-,(mpetin ((d. #he )ub)idy tend) t( re)u+t in deadeiht +())e) *(r thed(me)ti, e,(n(my in the *(rm (* the:

a. C(n)umpti(n e**e,t b. 8edi)tributi(n e**e,t



7/21/2019 ECO 305 Week 4 Quiz


7/21/2019 ECO 305 Week 4 Quiz


@. #he imp()iti(n (* a d(me)ti, ,(ntent re2uirement by the !nited State)(u+d ,au)e ,(n)umer )urp+u) *(r 7meri,an) t(:a. 8i)e

b. Aa++,. 8emain un,haned

d. ;(ne (* the ab(e

10. (me)ti, ,(ntent +ei)+ati(n app+ied t( aut() (u+d tend t(:a. Supp(rt ae +ee+) (* 7meri,an aut((rker)

b. "(er aut( pri,e) *(r 7meri,an aut((rker),. En,(urae 7meri,an aut(maker) t( +(,ate pr(du,ti(n (er)ea)d. $n,rea)e pr(*it) (* 7meri,an aut( ,(mpanie)

11. C(mpared t( an imp(rt 2u(ta9 an e2uia+ent tari** may pr(ide a +e)),ertain am(unt (* pr(te,ti(n *(r h(me pr(du,er) )in,e:a. 7 tari** ha) n( deadeiht +()) in term) (* pr(du,ti(n and ,(n)umpti(n

b. A(rein *irm) may ab)(rb the tari** by (**erin ep(rt) at +(er pri,e),. #ari**) are e**e,tie (n+y i* h(me demand i) per*e,t+y e+a)ti,d. Qu(ta) d( n(t re)u+t in in,rea)e) in the pri,e (* the imp(rted ((d

1. Empiri,a+ )tudie) )h( that be,au)e (+untary ep(rt 2u(ta) aretypi,a++y admini)tered by ep(rtin ,(untrie)9 *(rein ep(rter) tend t(:a. 8ai)e their ep(rt pri,e)9 thu) ,apturin mu,h (* the 2u(ta) reenue e**e,t

b. "(er their ep(rt pri,e)9 thu) +()in mu,h (* the 2u(ta) reenue e**e,t,. 8ai)e their ep(rt pri,e)9 thu) )e++in m(re ((d) (er)ea)d. "(er their ep(rt pri,e)9 thu) )e++in *eer ((d) (er)ea)

13. C(n,ernin the re)tri,tie impa,t (* an imp(rt 2u(ta9 a))ume there(,,ur) an in,rea)e in the d(me)ti, demand *(r the imp(rt pr(du,t. 7) +(n a) the2u(ta *a++) )h(rt (* hat (u+d be imp(rted under *ree market ,(nditi(n)9 thee,(n(my) adBu)tment t( the in,rea)e in demand (u+d take the *(rm (*:a. 7 de,rea)e in d(me)ti, pr(du,ti(n (* the imp(rt ((d

b. 7n in,rea)e in the am(unt (* the ((d bein imp(rted,. 7n in,rea)e in the d(me)ti, pri,e (* the imp(rt ((dd. 7 de,rea)e in d(me)ti, ,(n)umpti(n (* the imp(rt ((d

7/21/2019 ECO 305 Week 4 Quiz


14. 7))ume the !.S. ha) a ,(mpetitie adantae in pr(du,in ,a+,u+at(r)9hi+e the re)t (* the (r+d ha) a ,(mpetitie adantae in )tee+. Supp()e the !.S. andthe re)t (* the (r+d enter int( an areement t( +(er imp(rt 2u(ta) be+( ei)tin+ee+) (n ,a+,u+at(r) and )tee+. Whi,h (* the *(++(in (u+d +ea)t +ike+y (,,ur *(r the

!.S. 8i)in +ee+) (*:a. C(n)umer )urp+u) *(r 7meri,an buyer) (* )tee+

b. %r(du,er )urp+u) *(r 7meri,an )tee+maker),. %r(du,ti(n in the 7meri,an ,a+,u+at(r indu)tryd. %r(du,er )urp+u) *(r 7meri,an ,a+,u+at(r pr(du,er)

15. 7 *irm that *a,e) pr(b+em) (* *a++in )a+e) and e,e)) pr(du,tie,apa,ity miht re)(rt t( internati(na+ dumpin i* it:

a. Can ,hare hiher pri,e) in market) that are e+a)ti, t( pri,e ,hane) b. Earn) reenue) (n *(rein )a+e) that at +ea)t ,(er ariab+e ,()t),. Can )e++ at that pri,e here d(me)ti, and *(rein demand e+a)ti,itie) e2uated. $) ab+e t( *(r,e *(rein pri,e) be+( marina+ pr(du,ti(n ,()t)

16. 7 pr(du,er )u,,e))*u++y pra,ti,in internati(na+ dumpin (u+d,hare:a. 7 re+atie+y hiher pri,e in the m(re ine+a)ti, market

b. 7 re+atie+y hiher pri,e in the m(re e+a)ti, market,. #he )ame pri,e in a++ market)9 reard+e)) (* their e+a)ti,itie)d. i**erent pri,e) in a++ market)9 reard+e)) (* their e+a)ti,itie)

1<. #he pra,ti,e (* Canadian *irm) dumpin their pr(du,t) in Seden p()e) a pr(b+em *(r e,(n(mi, p(+i,ymaker) )in,e dumpin tend) t(:a. Aa(r Sedi)h ,(n)umer) (er Canadian ,(n)umer)

b. Aa(r Sedi)h pr(du,er) (er Canadian pr(du,er),. =e,(me ide)pread a) *irm) (perate at *u++ pr(du,tie ,apa,ityd. 8e)u+t in *irm) ,harin pri,e) ab(e the t(ta+ ,()t) (* pr(du,ti(n

1>. #he !nited 7ut( W(rker) uni(n attempted t( in the appr(a+ (*+ei)+ati(n that (u+d m(derate the pra,ti,e (* *(rein )(ur,in (n the part (*7meri,an aut( manu*a,turer). Whi,h (* the *(++(in be)t repre)ent) thi) +ei)+ati(na. (+untary ep(rt 2u(ta)

b. #rier pri,e me,hani)m,. #ari** 2u(ta)

7/21/2019 ECO 305 Week 4 Quiz


d. "(,a+ ,(ntent +a)

1@. 7 main *a,t(r behind the pre)ident) de,i)i(n t( etend re+ie* t( )tee+*irm) in the *(rm (* trier pri,e) a) that:a. umpin ,(mp+aint) ,an be time ,(n)umin and epen)ie t( imp+ement

b. #he #(ky( 8(und (ut+aed the rantin (* )ub)idie) t( )tee+ *irm),. #rier pri,e) in(+e zer( deadeiht e+*are +()) *(r the e,(n(myd. Order+y marketin areement) ere t(( ,()t+y t( admini)ter

0. $* a tari** and an imp(rt 2u(ta +ead t( e2uia+ent in,rea)e) in the

d(me)ti, pri,e (* )tee+9 then:a. #he 2u(ta re)u+t) in e**i,ien,y redu,ti(n) but the tari** d(e) n(t

b. #he tari** re)u+t) in e**i,ien,y redu,ti(n) but the 2u(ta d(e) n(t,. #hey hae di**erent impa,t) (n h( mu,h i) pr(du,ed and ,(n)umedd. #hey hae di**erent impa,t) (n h( in,(me i) di)tributed

1. $* a tari** and an imp(rt 2u(ta +ead t( e2uia+ent in,rea)e) in thed(me)ti, pri,e (* )tee+9 then:a. #he 2u(ta re)u+t) in e**i,ien,y redu,ti(n) but the tari** d(e) n(t

b. #he tari** re)u+t) in e**i,ien,y redu,ti(n) but the 2u(ta d(e) n(t,. #hey hae identi,a+ impa,t) (n h( mu,h i) pr(du,ed and ,(n)umedd. #hey hae identi,a+ impa,t) (n h( in,(me i) di)tributed

. Ar(m the per)pe,tie (* the 7meri,an pub+i, a) a h(+e9 ep(rt)ub)idie) +eied by (er)ea) (ernment) (n ((d) )(+d t( the !nited State):

a. 'e+p m(re than they hurt b. 'urt m(re than they he+p,. 7re e2uia+ent t( an imp(rt 2u(tad. 7re e2uia+ent t( an ep(rt 2u(ta

3. Ep(rt )ub)idie) +eied by *(rein (ernment) (n pr(du,t) in hi,hthe !nited State) ha) a ,(mparatie di)adantae:a. "(er the e+*are (* a++ 7meri,an)

b. "ead t( in,rea)e) in !.S. ,(n)umer )urp+u),. En,(urae !.S. pr(du,ti(n (* ,(mpetin ((d)

7/21/2019 ECO 305 Week 4 Quiz


d. En,(urae !.S. (rker) t( demand hiher ae)

4. $* imp(rt +i,en)e) are au,ti(ned (** t( d(me)ti, imp(rter) in a,(mpetitie market9 their ),ar,ity a+ue Dreenue e**e,t a,,rue) t(:a. A(rein ,(rp(rati(n)

b. A(rein (rker),. (me)ti, ,(rp(rati(n)d. #he d(me)ti, (ernment

5. 7 )pe,i*i,ati(n (* a maimum am(unt (* a *(rein pr(du,ed ((d that

i++ be a++(ed t( enter the ,(untry (er a ien time peri(d i) re*erred t( a):a. 7 d(me)ti, )ub)idy

b. 7n ep(rt )ub)idy,. 7n imp(rt 2u(tad. 7n ep(rt 2u(ta

6. $mp(rt 2u(ta) tend t( +ead t( a++ (* the *(++(in e,ept:a. (me)ti, pr(du,er) (* the imp(rted ((d bein harmed

b. (me)ti, ,(n)umer) (* the imp(rted ((d bein harmed,. %ri,e) in,rea)in in the imp(rtin ,(untryd. %ri,e) *a++in in the ep(rtin ,(untry

<. #( maintain that S(uth F(rean) are dumpin their C8) in the !nitedState) i) t( maintain that:a. F(rean) are )e++in C8) in the !nited State) be+( their pr(du,ti(n ,()t

b. F(rean) are )e++in C8) in the !nited State) ab(e their pr(du,ti(n ,()t,. #he ,()t (* manu*a,turin C8) in F(rea i) +(er in F(rea than in the !nitedState) )in,e ae) are +(er in F(read. #he ,()t (* manu*a,turin C8) in F(rea i) hiher in F(rea than in the!nited State) )in,e ae) are hiher in F(rea

>. $* the h(me ,(untry) (ernment rant) a )ub)idy (n a d(me)ti,a++y pr(du,ed ((d9 d(me)ti, pr(du,er) tend t(:

a. Capture the entire )ub)idy in the *(rm (* hiher pr(*it) b. $n,rea)e their +ee+ (* pr(du,ti(n

7/21/2019 ECO 305 Week 4 Quiz


,. 8edu,e ae) paid t( d(me)ti, (rker)d. C(n)ider the )ub)idy a) an in,rea)e in pr(du,ti(n ,()t

@. A(r year) the !.S. (ernment +eied 2u(ta) (n inepen)ie (i+imp(rted *r(m the idd+e Ea)t. #he 2u(ta) +ed t( ,()t in,rea)e) *(r !.S. ,(n)umer)t(ta+in G3 bi++i(n *(r (i+ pr(du,t). 7n apparent Bu)ti*i,ati(n *(r thi) p(+i,y a) that:a. !.S. (i+ ,(mpanie) and (rker) de)ered hiher in,(me)

b. !.S. (i+ a) (* )uperi(r 2ua+ity and merited hiher pri,e),. One )h(u+d n(t be t(( dependent (n *(rein )upp+ier) (* ,ru,ia+ re)(ur,e)d. #he !.S. (ernment needed the 2u(ta reenue t( ba+an,e it) budet

30. $n ,ertain indu)trie)9 apane)e emp+(yer) d( n(t +ay (** (rker).#here*(re9 they )(metime) hae e,e)) )upp+ie) (* ((d) that they ,ann(t )e++ (n theh(me market ith(ut +(erin pri,e). #( h(+d d(n +())e)9 they )e++ ((d) in(er)ea) market) at pri,e) e++ beneath th()e in apan. #hi) pra,ti,e i) be)t re*erred t(a):a. Order+y marketin

b. #rier pri,in,. (me)ti, ,(ntent pri,ind. umpin

Aiure 5.1 i++u)trate) the )tee+ market *(r ei,(9 a))umed t( be a )ma++ ,(untrythat i) unab+e t( a**e,t the (r+d pri,e. Supp()e the (r+d pri,e (* )tee+ i) ien and,(n)tant at G00 per t(n. ;( )upp()e the ei,an )tee+ indu)try i) ab+e t( (btaintrade pr(te,ti(n.

Aiure 5.1. 7+ternatie ;(ntari** #rade =arrier) "eied by a Sma++ C(untry

31. C(n)ider Aiure 5.1. With *ree trade9 the 2uantity (* )tee+ imp(rted byei,( e2ua+):a. t(n)

b. 4 t(n),. 6 t(n)d. > t(n)

7/21/2019 ECO 305 Week 4 Quiz


3. C(n)ider Aiure 5.1. With *ree trade9 ei,() ,(n)umer )urp+u) and pr(du,er )urp+u) re)pe,tie+y e2ua+:a. G000 and G100

b. G300 and G00,. G3600 and G>00

d. G4000 and G600

33. 8e*errin t( Aiure 5.19 )upp()e the ei,an (ernment imp()e) animp(rt 2u(ta e2ua+ t( t(n) (* )tee+.

$* ei,an )tee+ imp(rter) behae a) m(n(p(+y buyer) and *(rein ep(rter) behaea) ,(mpetitie )e++er)9 the (era++ e+*are +()) (* the 2u(ta t( ei,( e2ua+):a. G00

b. G400,. G600d. G>00

34. 8e*errin t( Aiure 5.19 )upp()e the ei,an (ernment imp()e) animp(rt 2u(ta e2ua+ t( t(n) (* )tee+.

$* *(rein ep(rter) behae a) m(n(p(+y )e++er)9 and ei,an imp(rter) behae a),(mpetitie buyer)9 the (era++ e+*are +()) (* the 2u(ta t( ei,( e2ua+):a. G00

b. G400,. G600d. G>00

35. 8e*errin t( Aiure 5.19 )upp()e the ei,an (ernment imp()e) an

imp(rt 2u(ta e2ua+ t( t(n) (* )tee+.

$* the ei,an (ernment au,ti(n) imp(rt +i,en)e) t( the hihe)t *(rein bidder9 the(era++ e+*are +()) (* the 2u(ta t( ei,( e2ua+):a. G00

b. G400,. G600d. G>00

7/21/2019 ECO 305 Week 4 Quiz


36. C(n)ider Aiure 5.1. Supp()e the ei,an (ernment pr(ide) a)ub)idy (* G00 per t(n t( it) )tee+ pr(du,er)9 a) indi,ated by the )upp+y ),hedu+e SDith )ub)idy.

#he 2uantity (* imp(rt) e2ua+):

a. 1 t(n b. t(n),. 3 t(n)d. 4 t(n)

3<. C(n)ider Aiure 5.1. Supp()e the ei,an (ernment pr(ide) a)ub)idy (* G00 per t(n t( it) )tee+ pr(du,er)9 a) indi,ated by the )upp+y ),hedu+e SDith )ub)idy.

#he t(ta+ ,()t (* the )ub)idy t( the ei,an (ernment e2ua+):a. G00

b. G400,. G600d. G>00

3>. C(n)ider Aiure 5.1. Supp()e the ei,an (ernment pr(ide) a)ub)idy (* G00 per t(n t( it) )tee+ pr(du,er)9 a) indi,ated by the )upp+y ),hedu+e SDith )ub)idy.

7) a re)u+t (* the )ub)idy ei,an )tee+ pr(du,er) ain HHHH (* pr(du,er )urp+u).a. G00

b. G400,. G600d. G>00

3@. C(n)ider Aiure 5.1. Supp()e in)tead that the ei,an (ernment pr(ide) a )ub)idy (* G00 per t(n t( it) )tee+ pr(du,er)9 a) indi,ated by the )upp+y),hedu+e S Dith )ub)idy.

7) a re)u+t (* the )ub)idy9 the e+*are +()) t( ei,( due t( ine**i,ient d(me)ti, pr(du,ti(n e2ua+):a. G00

b. G400,. G600

d. G>00

7/21/2019 ECO 305 Week 4 Quiz


40. C(n)ider Aiure 5.1. Supp()e the ei,an (ernment pr(ide) a)ub)idy (* G00 per t(n t( it) )tee+ pr(du,er)9 a) indi,ated by the )upp+y ),hedu+e S

Dith )ub)idy.

#he (era++ deadeiht e+*are +()) t( ei,( e2ua+):a. G00

b. G400,. G600d. G>00

41. C(n)ider Aiure 5.1. Supp()e the re)t (* the (r+d (+untari+y aree)t( redu,e )tee+ )hipment) t( ei,( i)-a-i) an ep(rt 2u(ta e2ua+ t( t(n).

7))umin ei,an imp(rter) behae a) ,(mpetitie buyer) hi+e *(rein ep(rter) behae a) m(n(p(+y )e++er)9 the (era++ e+*are +()) (* the 2u(ta t( ei,( i):a. G00

b. G400,. G600d. G>00

4. C(n)ider Aiure 5.1. Supp()e the re)t (* the (r+d (+untari+y aree)t( redu,e )tee+ )hipment) t( ei,( i)-a-i) an ep(rt 2u(ta e2ua+ t( t(n).

7))umin ei,an imp(rter) behae a) m(n(p(+y buyer) hi+e *(rein ep(rter) behae a) ,(mpetitie )e++er)9 the (era++ e+*are +()) (* the 2u(ta t( ei,( i):a. G00

b. G400,. G600

d. G>00

Aiure 5. i++u)trate) the reenue and ,()t ,(nditi(n) (* 7=C $n,. hi,h )e++),a+,u+at(r) in Canada and Aran,e.

Aiure 5.. $nternati(na+ umpin

7/21/2019 ECO 305 Week 4 Quiz


43. C(n)ider Aiure 5.. $n the ab)en,e (* internati(na+ dumpin9 7=C$n,. maimize) pr(*it) by )e++in HHHH ,a+,u+at(r) at a pri,e (* GHHHHI the *irmrea+ize) pr(*it) t(ta+in GHHHH.a. <9 G59 G54

b. <9 G59 G36

,. 49 G49 G46d. 49 G49 G>

44. 8e*errin t( Aiure 5.9 ,(n)ider i* 7=C $n,. )e++) < ,a+,u+at(r) at a pri,e (* G5 ea,h9 rea+izin pr(*it) t(ta+in G54. O* thi) 2uantity9 7=C $n,. )e++) HHHH,a+,u+at(r) in Canada and rea+ize) reenue) t(ta+in GHHHHI the *irm )e++) HHHH,a+,u+at(r) in Aran,e and rea+ize) reenue) t(ta+in GHHHH.a. 159 G359 @9 G45

b. 159 G459 @9 G35,. 19 G1059 69 G30d. 19 G309 69 G105

45. C(n)ider Aiure 5.. With internati(na+ dumpin9 7=C $n,. )e++) HHHH,a+,u+at(r) t( Canadian buyer) at a pri,e (* GHHHH and HHHH ,a+,u+at(r) t( Aren,h

buyer) at a pri,e (* GHHHH.a. 159 G49 19 G<

b. 159 G<9 19 G4,. @9 G59 159 G6d. @9 G69 159 G5

46. C(n)ider Aiure 5.. C(mpared ith the t(ta+ reenue and t(ta+ pr(*itthat 7=C $n,. rea+ize) in the ab)en,e (* dumpin9 ith dumpin the *irm attain) a:a. Aa++ in reenue (* G1>I *a++ in pr(*it) (* G15

b. Aa++ in reenue (* G1>9 *a++ in pr(*it) (* G1>,. 8i)e in reenue (* G1>9 ri)e in pr(*it) (* G15d. 8i)e in reenue (* G1>9 ri)e in pr(*it) (* G1>

Aiure 5.3 i++u)trate) the app+e market *(r Seden9 a))umed t( be a )ma++ ,(untrythat i) unab+e t( a**e,t the (r+d pri,e. SSeden i) the d(me)ti, )upp+y and Sedeni) the d(me)ti, demand. SSedenJQu(ta i) Seden) )upp+y ),hedu+e ith an imp(rt2u(ta.

Aiure 5.3. Seden) 7pp+e arket

7/21/2019 ECO 305 Week 4 Quiz


4<. C(n)ider Aiure 5.3. $n the ab)en,e (* trade9 Seden) e2ui+ibrium pri,e and 2uantity (* app+e) (u+d be:

a. G0.60 and p(und) b. G0.60 and 14 p(und),. G1.00 and 1> p(und)d. G1.40 and 14 p(und)

4>. C(n)ider Aiure 5.3. Supp()e the re)t (* the (r+d ,an )upp+y app+e) t(Seden at a pri,e (* G0.60 per p(und. With *ree trade9 Seden pr(du,e) HHHH p(und)(* app+e) and imp(rt) HHHH p(und) (* app+e).

a. 109 > b. 109 1>,. 69 d. 69 16

4@. C(n)ider Aiure 5.3. 7t the *ree-trade pri,e (* G0.60 per p(und9Seden) ,(n)umer )urp+u) t(ta+) GHHHH and pr(du,er )urp+u) t(ta+) GHHHH.a. G10.>09 G.40

b. G14.609 G3.@0,. G4.09 G1.>0d. G3.409 G.30

50. C(n)ider Aiure 5.3. $* SSedenJQu(ta repre)ent) the )upp+y ),hedu+ea*ter a 2u(ta i) +eied9 Seden) imp(rt) i++ e2ua+:a. 6 app+e)

b. > app+e),. 10 app+e)d. 1 app+e)

51. C(n)ider Aiure 5.3. 7*ter the 2u(ta i) +eied9 the pri,e (* app+e) inSeden i++ e2ua+:a. G0.60 per p(und

b. G1.00 per p(und

,. G1.40 per p(undd. G1.>0 per p(und

7/21/2019 ECO 305 Week 4 Quiz


5. C(n)ider Aiure 5.3. 7) a re)u+t (* the 2u(ta9 Seden) ,(n)umer

)urp+u):a. $n,rea)e) by G6

b. $n,rea)e) by G>,. e,rea)e) by G6d. e,rea)e) by G>

53. C(n)ider Aiure 5.3. #he 2u(ta +ead) t( a deadeiht e+*are +()) *(rSeden (* an am(unt e2ua+in:

a. G0.>0 b. G1.60,. G.40d. G3.0

54. C(n)ider Aiure 5.3. #he 2u(ta) reenue e**e,t e2ua+):a. G1.60

b. G.40,. G3.0d. G4.00

55. C(n)ider Aiure 5.3. 7))ume that Sedi)h imp(rt ,(mpanie) behaea) ,(mpetitie buyer) hi+e *(rein ep(rt ,(mpanie) behae a) a m(n(p(+y )e++er.C(mpared t( *ree trade9 Seden) imp(rt 2u(ta re)u+t) in d(me)ti, e+*are:a. ?ain) t(ta+in G3.0

b. ?ain) t(ta+in G4.>0,. "())e) t(ta+in G3.0d. "())e) t(ta+in G4.>0

56. C(n)ider Aiure 5.3. 7))ume that Sedi)h imp(rt ,(mpanie) behaea) a m(n(p(+y buyer hi+e *(rein ep(rt ,(mpanie) behae a) ,(mpetitie )e++er).C(mpared t( *ree trade9 Seden) imp(rt 2u(ta re)u+t) in d(me)ti, e+*are:a. ?ain) t(ta+in G1.60

b. ?ain) t(ta+in G3.0,. "())e) t(ta+in G1.60

7/21/2019 ECO 305 Week 4 Quiz


d. "())e) t(ta+in G3.0

5<. C(n)ider Aiure 5.3. $* the Sedi)h (ernment au,ti(n) imp(rt+i,en)e) t( the hihe)t bidder in a ,(mpetitie market9 it ,(u+d rea+ize reenue) (* upt(:a. G3.0

b. G4.00,. G4.>0d. G5.60

Aiure 5.4 i++u)trate) the ,a+,u+at(r market *(r enezue+a9 a))umed t( be a )ma++,(untry that i) unab+e t( a**e,t the (r+d pri,e. Senezue+a i) the d(me)ti, )upp+y),hedu+e and enezue+a i) the d(me)ti, demand ),hedu+e.

Aiure 5.4. enezue+an Ca+,u+at(r arket

5>. C(n)ider Aiure 5.4. Supp()e the re)t (* the (r+d )upp+ie) ,a+,u+at(r)t( enezue+a at a pri,e (* G4 ea,h. With *ree trade9 enezue+an imp(rt) t(ta+:a. > ,a+,u+at(r)

b. 16 ,a+,u+at(r),. 0 ,a+,u+at(r)d. 4 ,a+,u+at(r)

5@. C(n)ider Aiure 5.4. 7))ume the enezue+an (ernment rant) it)manu*a,turer) a pr(du,ti(n )ub)idy (* G4 per ,a+,u+at(r. 7*ter the )ub)idy i) ranted9enezue+an imp(rt) t(ta+:

a. > ,a+,u+at(r) b. 1 ,a+,u+at(r),. 16 ,a+,u+at(r)d. 0 ,a+,u+at(r)

60. C(n)ider Aiure 5.4. #he ,()t (* the pr(du,ti(n )ub)idy t( theenezue+an (ernment t(ta+):a. G3

b. G40,. G4>

7/21/2019 ECO 305 Week 4 Quiz


d. G54

61. C(n)ider Aiure 5.4. #he in,rea)e in enezue+an pr(du,er )urp+u)under the pr(du,ti(n )ub)idy t(ta+):a. G16

b. G0,. G4d. G3

6. C(n)ider Aiure 5.4. #he pr(du,ti(n )ub)idy re)u+t) in an (era++

e+*are +()) *(r enezue+a t(ta+in:a. G>

b. G1,. G16d. G0

63. 7 (+untary ep(rt areementa. #ypi,a++y app+ie) (n+y t( the (r+d) m()t imp(rtant ep(rtin nati(nD)

b. #ypi,a++y app+ie) (n+y t( the (r+d) +ea)t imp(rtant ep(rtin nati(n D),. $) a+ay) m(re re)tri,tie (n trade than a tari** (r imp(rt 2u(tad. 7++ (* the ab(e

64. When (+untary ep(rt +imit) are imp()ed (n the (r+d) ,hie*ep(rter a. #he ep(rt) (* the n(n-re)trained )upp+ier) may be )timu+ated

b. 7 trade dier)i(n e**e,t may (,,ur ,. =(th a and bd. ;(ne (* the ab(e

65. Sub)idie) t( d(me)ti, *irm) may +ead t(a. 7n in,rea)e in pri,e)

b. 'iher (+ume (* ep(rt),. 'iher (+ume (* imp(rt)

d. $n,rea)e in e+*are (* the tradin partner

7/21/2019 ECO 305 Week 4 Quiz


66. C(n,ernin internati(na+ dumpin9 many e,(n(mi)t) arue that *aira+ue )h(u+d be ba)ed (n

a. 7erae ariab+e ,()t b. 7erae *ied ,()t,. arina+ ,()td. #(ta+ ,()t

().E/,LSE

1. $n the p()t-W(r+d War $$ era9 ;(ntari** trade barrier) hae de,rea)ed in

imp(rtan,e re+atie t( tari** barrier).

. 7n imp(rt 2u(ta i) a phy)i,a+ re)tri,ti(n (n the 2uantity (* ((d) thatmay be imp(rted durin a )pe,i*ied time peri(d.

3. #(day m()t indu)tria+ ,(untrie) pr(te,t their indu)trie) ia +(ba+imp(rt 2u(ta) rather than )e+e,tie imp(rt 2u(ta).

4. 7 +(ba+ imp(rt 2u(ta permit) a )pe,i*ied number (* ((d) t( beimp(rted ea,h year9 but d(e) n(t )pe,i*y here the pr(du,t i) )hipped *r(m and h(i) permitted t( imp(rt.

5. $mp(rt tari**) and imp(rt 2u(ta) yie+d identi,a+ pr(te,ti(n e**e,t)9

,(n)umpti(n e**e,t)9 redi)tributi(n e**e,t)9 and reenue e**e,t).

6. $mp(rt 2u(ta) ,an yie+d reenue *(r the d(me)ti, (ernment i* itau,ti(n) imp(rt +i,en)e) t( the hihe)t bidder in a ,(mpetitie market.

<. #( the etent that d(me)ti, imp(rtin ,(mpanie) (ranize a) am(n(p(+y buyer9 and *(rein ep(rtin ,(mpanie) behae a) ,(mpetitie )e++er)9 the

imp(rtin ,(mpanie) ,apture the reenue e**e,t (* a 2u(ta.

7/21/2019 ECO 305 Week 4 Quiz


7/21/2019 ECO 305 Week 4 Quiz


1<. A(r an ep(rt 2u(ta app+ied t( manu*a,tured ((d)9 *(rein ep(rter)tend t( ,apture (n+y a ne+iib+e )hare (* the 2u(ta) reenue e**e,t.

1>. When in,rea)e) in n(nre)traint )upp+y (**)et part (* the ,utba,k in)hipment) that (,,ur under an ep(rt 2u(ta9 the (era++ ine**i,ien,y +()) *(r theimp(rtin ,(untry i) +e)) than that hi,h (u+d hae (,,urred in the ab)en,e (*n(nre)trained ep(rt).

1@. Ep(rt 2u(ta)9 p+a,ed (n apane)e aut( )hipment) t( the !nited State)in the 1@>0)9 +ed t( ri)in pri,e) (* b(th apane)e aut() and !.S.-pr(du,ed aut()

pur,ha)ed by the !.S. ,(n)umer.

0. !nder the u+ti*iber 7rranement9 the !nited State) ,an ep(rt (n+y+imited 2uantitie) (* teti+e) and appare+ t( #aian9 '(n F(n9 S(uth F(rea9 andChina.

1. urin the 1@>0)9 !.S. )tee+-u)in ,(mpanie) DCaterpi++ar a,tie+y)upp(rted the !.S. (ernment) ne(tiati(n (* (+untary ep(rt areement) ith*(rein )tee+-ep(rtin ,(untrie).

. =y +imitin the am(unt (* *(rein )(ur,in9 +(,a+ ,(ntent +a) areieed a) a mean) (* B(b) pre)erati(n *(r d(me)ti, (rker).

3. "(,a+ ,(ntent +a) )tipu+ate the maimum per,entae (* a pr(du,t)t(ta+ a+ue that mu)t be pr(du,ed d(me)ti,a++y *(r that pr(du,t t( be )(+dd(me)ti,a++y.

4. "(,a+ ,(ntent +a) are ,(n)i)tent ith the prin,ip+e (* imp(rt)ub)tituti(n9 in hi,h d(me)ti, pr(du,ti(n rep+a,e) the imp(rtati(n (* ((d) *r(mabr(ad.

7/21/2019 ECO 305 Week 4 Quiz


5. #( the etent that a +(,a+ ,(ntent re2uirement *(r,e) *irm) t( +(,ate pr(du,ti(n in a hih-,()t nati(n9 pr(du,t pri,e ri)e) and ,(n)umer )urp+u) *a++).

6. 7 )ub)idy ranted t( imp(rt-,(mpetin pr(du,er) re)u+t) in a e+*are+()) t( the e,(n(my by an am(unt e2ua+ t( the pr(te,tie e**e,t p+u) the ,(n)umpti(ne**e,t.

<. 7 )ub)idy ranted t( imp(rt-,(mpetin pr(du,er) i) intended t( +ead t(in,rea)ed d(me)ti, pr(du,ti(n and de,rea)ed imp(rt) *(r the h(me ,(untry.

>. 7 )ub)idy ranted t( an imp(rt-,(mpetin pr(du,er )hi*t) it) )upp+y),hedu+e (utard t( the riht.

@. 7 )ub)idy ranted t( an imp(rt-,(mpetin pr(du,er imp()e) adeadeiht +()) (n the d(me)ti, e,(n(my e2ua+ t( the redi)tributi(n e**e,t p+u),(n)umpti(n e**e,t.

30. 7 )ub)idy ranted t( imp(rt-,(mpetin pr(du,er) redu,e) (era++d(me)ti, e+*are by the )ame am(unt a) (u+d a tari** (r 2u(ta that re)tri,t) imp(rt)

by the )ame am(unt.

31. #( the etent that )ub)idie) ranted t( ep(rtin *irm) redu,e the*(rein pri,e (* their ((d)9 the )ub)idizin ,(untry) term) (* trade (r)en.

3. $* the !.S. demand *(r F(rean )tee+ i) pri,e e+a)ti,9 an ep(rt )ub)idyranted t( F(rean )tee+ *irm) i++ in,rea)e F(rea) ep(rt reenue.

33. $nternati(na+ dumpin (,,ur) hen *(rein buyer) are ,hared hiher pri,e) than d(me)ti, buyer) *(r an identi,a+ pr(du,t9 a*ter a++(in *(r tran)p(rtati(n,()t) and tari** dutie).

7/21/2019 ECO 305 Week 4 Quiz


34. Sp(radi, Ddi)tre)) dumpin (u+d (,,ur i* d(me)ti, (rane pr(du,er)di)p()e (* an e,e)) 2uantity (* (rane)9 re)u+tin *r(m an abn(rma++y +are hare)t9

by )e++in them at +(er pri,e) abr(ad than at h(me.

35. %redat(ry dumpin (u+d (,,ur i* #(y(ta $n,. (* apan )e++) aut() t(!.S. ,(n)umer) at +(er pri,e) than t( apane)e ,(n)umer) in (rder t( put Chry)+er$n,. (ut (* bu)ine)).

36. 7 *irm (u+d in,rea)e pr(*it) *r(m dumpin i* it ,hare) a +(er pri,eat h(me9 here demand i) ine+a)ti,9 and a hiher pri,e abr(ad here demand i)e+a)ti,.

3<. #he purp()e (* internati(na+ dumpin i) t( de,rea)e a *irm) ,()t) andin,rea)e it) pr(*it)9 ,(mpared t( hat (u+d be rea+ized in the ab)en,e (* dumpin.

3>. 7 *irm rantin +i*etime emp+(yment t( it) (rker) ha) the in,entie t(enae in internati(na+ dumpin durin peri(d) (* bu)ine)) re,e))i(n and e,e))

pr(du,ti(n ,apa,ity.

3@. 7 *irm )u**erin id+e p+ant ,apa,ity (u+d minimize +())e) by )e++init) pr(du,t abr(ad at a +(er pri,e than at h(me9 pr(ided that the *(rein pri,e m(rethan ,(er) aerae ariab+e ,()t.

40. !nder !.S. antidumpin +a9 an antidumpin duty ,an be +eied henthe !.S. C(mmer,e epartment determine) that a *(rein pr(du,t i) bein )(+d in the

!nited State) at +e)) than *air a+ue and the !.S. $nternati(na+ #rade C(mmi))i(ndetermine) that the dumped pr(du,t i) ,au)in e,(n(mi, harm t( d(me)ti, pr(du,er).

41. #he marin (* dumpin e2ua+) the am(unt by hi,h the *(rein pri,ei) reater than the d(me)ti, pri,e9 (r the am(unt by hi,h the *(rein pri,e e,eed)the ,()t (* pr(du,ti(n.

4. A(r m()t nati(n)9 the rati( (* imp(rt) t( t(ta+ pur,ha)e) in the pub+i,)e,t(r i) mu,h hiher than in the priate )e,t(r.

7/21/2019 ECO 305 Week 4 Quiz


43. 7,,(rdin t( the !.S. =uy 7meri,an 7,t9 *edera+ (ernment aen,ie),ann(t pur,ha)e materia+) and pr(du,t) *r(m !.S. )upp+ier) i* their pri,e) are hiher

than th()e (* *(rein ,(mpetit(r).

44. A(r the !nited State)9 the =uy 7meri,an 7,t ha) tended t( in,rea)e,(n)umer )urp+u) *(r !.S. buyer) (* pr(te,ted mer,handi)e.

45. 7n e**e,tie =uy 7meri,an +a (u+d tend t( in,rea)e !.S. pr(du,er)urp+u) at the epen)e (* !.S. ,(n)umer )urp+u).

46. 7n e**e,tie =uy 7meri,an +a re)u+t) in deadeiht e+*are +())e)*(r the !nited State) in the *(rm (* the pr(te,tie e**e,t and ,(n)umpti(n e**e,t.

4<. 7+th(uh the #(ky( 8(und (* internati(na+ trade ne(tiati(n) redu,edthe =uy-7meri,an re)tri,ti(n) (* the !.S. (ernment9 many )tate (ernment) haemaintained re)tri,tie =uy-7meri,an p(+i,ie).

4>. 7,,(rdin t( the ,()t-ba)ed de*initi(n (* dumpin9 dumpin bein) t((,,ur hen a *irm )e++) a pr(du,t at a pri,e that i) +e)) than aerae ariab+e ,()t.

4@. $* the apane)e demand *(r ,(mputer) i) e+a)ti, and the Canadiandemand *(r ,(mputer) i) ine+a)ti,9 a pr(*it-maimizin *irm (u+d ,hare a hiher

pri,e t( Canadian buyer) than t( apane)e buyer).

50. $* the 7u)tra+ian (ernment imp()e) a d(me)ti, ,(ntent re2uirement(* <5 per,ent (n aut()9 at +ea)t 5 per,ent (* an aut() a+ue mu)t be pr(du,ed in a*(rein ,(untry i* that aut( i) t( be )(+d in 7u)tra+ia.

51. urin the 1@>0)9 the !.S. (ernment imp()ed )uar imp(rt 2u(ta) in

an attempt t( redu,e it) ,()t) (* maintainin pri,e )upp(rt) *(r !.S. )uar r(er).

7/21/2019 ECO 305 Week 4 Quiz


Aiure 5.5 i++u)trate) the te+ei)i(n market *(r ei,(9 a))umed t( be a )ma++ ,(untrythat i) unab+e t( a**e,t the (r+d pri,e. Sei,( i) the d(me)ti, )upp+y ),hedu+e andei,( i) the d(me)ti, demand ),hedu+e. Supp()e that apan ,an )upp+y te+ei)i(n)

t( ei,( at a pri,e (* G100 per )et.

Aiure 5.5. ei,() #e+ei)i(n arket

5. C(n)ider Aiure 5.5. With *ree trade9 ei,an) pr(du,e 4 #)9,(n)ume 4 #)9 and imp(rt 0 #).

53. C(n)ider Aiure 5.5. With *ree trade9 ei,an pr(du,er )urp+u) e2ua+)G450 and ei,an ,(n)umer )urp+u) e2ua+) G00.

54. C(n)ider Aiure 5.5. Supp()e that the (ernment) (* ei,( andapan ne(tiate a (+untary ep(rt areement in hi,h apane)e # ep(rt) t(ei,( are +imited t( > unit). !nder the 2u(ta9 the pri,e (* #) in ei,( e2ua+)G50 hi+e ei,an) pr(du,e 10 #) and pur,ha)e 1> #).

55. C(n)ider Aiure 5.5. C(mpared t( *ree trade9 the apane)e ep(rt 2u(ta+ead) t( an in,rea)e in ei,an ,(n)umer )urp+u) (* G3150.

56. C(n)ider Aiure 5.5. C(mpared t( *ree trade9 the apane)e ep(rt 2u(ta+ead) t( an in,rea)e in ei,an pr(du,er )urp+u) (* G1050.

5<. C(n)ider Aiure 5.5. #he deadeiht e+*are +()) t( ei,(9 a) are)u+t (* the apane)e ep(rt 2u(ta9 t(ta+) G100.

5>. C(n)ider Aiure 5.5. #he apane)e ep(rt 2u(ta) reenue e**e,t t(ta+)G100.

5@. C(n)ider Aiure 5.5. #he (ernment (* ei,( ,(++e,t) 50 per,ent (*the ep(rt 2u(ta) reenue e**e,t9 (r G6009 in the *(rm (* ta reenue.

7/21/2019 ECO 305 Week 4 Quiz


60. C(n)ider Aiure 5.5. 7))umin that the reenue e**e,t (* the ep(rt2u(ta a,,rue) t( apane)e *irm)9 the (era++ e+*are +()) t( ei,( e2ua+) G100 a) a

re)u+t (* the 2u(ta.

S'O)( *SWE)

1. $) a tari**-rate 2u(ta a t(-tier tari** Why

. What i) an O7

ESS

1. e),ribe )(me (* the di**eren,e) beteen tari**) and 2u(ta)

. What are the intent and impa,t (* d(me)ti, ,(ntent re2uirement)

C'P(E) &1()-E )E".L(+O*S *- +*-.S()+L POL+C+ES

$.L(+PLE C'O+CE

1. #he W(r+d #rade Oranizati(n a) e)tab+i)hed by the HHHH (*mu+ti+atera+ trade ne(tiati(n):a. Fennedy 8(und

b. #(ky( 8(und

,. !ruuay 8(undd. C+int(n 8(und

. !nder !.S. ,(mmer,ia+ p(+i,y9 the e),ape ,+au)e re)u+t) in:a. #emp(rary 2u(ta) ranted t( *irm) inBured by imp(rt ,(mpetiti(n

b. #ari**) that (**)et ep(rt )ub)idie) ranted t( *(rein pr(du,er),. #a adantae) etended t( min(rity-(ned ep(rtin *irm)d. utie) hi,h (**)et ,(mmer,ia+ dumpin (n the part (* *(rein *irm)

7/21/2019 ECO 305 Week 4 Quiz


3. 7dBu)tment a))i)tan,e i) )(metime) u)ed t( a))i)t:a. $n retrainin (rker) di)p+a,ed by imp(rt)

b. $n retrainin (rker) di)p+a,ed by ep(rt)

,. A(rein *irm) inBured by (ur 2u(ta)d. A(rein *irm) inBured by (ur tari**)

4. #he Ep(rt-$mp(rt =ank (* the !nited State) en,(urae) 7meri,an*irm) t( )e++ (er)ea) by pr(idin dire,t +(an) and +(an uarantee) t( *(rein

pur,ha)er) (* 7meri,an ((d). #( 7meri,an *irm)9 thi) repre)ent) a:a. Spe,i*i, )ub)idy

b. 7d a+(rem )ub)idy

,. (me)ti, )ub)idyd. Ep(rt )ub)idy

5. #he Sm((t-'a+ey #ari** 7,t (* 1@30 ha) enera++y been a))(,iatedith:a. Aa++in tari**)

b. $n,rea)e) in the (+ume (* trade,. $nten)i*yin the (r+dide depre))i(nd. E**(rt) t( +ibera+ize n(ntari** trade barrier)

6. 7 trade p(+i,y de)ined t( a++eiate )(me d(me)ti, e,(n(mi, pr(b+em by ep(rtin it t( *(rein ,(untrie) i) kn(n a) a Dan:a. $nternati(na+ dumpin p(+i,y

b. #rade adBu)tment a))i)tan,e p(+i,y,. ()t-*a(red-nati(n p(+i,y

d. =ear-thy-neihb(r p(+i,y

<. !nder !.S. ,(mmer,ia+ p(+i,y9 hi,h ,+au)e permit) the m(di*i,ati(n(* a trade +ibera+izati(n areement (n a temp(rary ba)i) i* )eri(u) inBury (,,ur) t(d(me)ti, pr(du,er) a) a re)u+t (* the areementa. 7dBu)tment a))i)tan,e ,+au)e

b. E),ape ,+au)e,. ()t-*a(red-nati(n ,+au)e

d. 8e,ipr(,a+-trade ,+au)e

7/21/2019 ECO 305 Week 4 Quiz


>. Whi,h p(+i,y re*+e,t) the n(ti(n that i* )(,iety enB(y) ain) due t(in,rea)ed e**i,ien,y )temmin *r(m trade +ibera+izati(n9 )(me )(rt (* ,(mpen)ati(n

)h(u+d be pr(ided t( th()e h( are temp(rari+y hurt by imp(rt ,(mpetiti(na. C(unterai+in dutie)

b. #rade adBu)tment a))i)tan,e,. (me)ti, )ub)idie)d. ()t-*a(red-nati(n )tandard

@. #he !ruuay 8(und (* u+ti+atera+ #rade ;e(tiati(n) a,,(mp+i)heda++ (* the *(++(in e,ept:

a. %+a,ed primary empha)i) (n n(ntari** trade barrier) b. $) e)timated t( yie+d m(de)t ain) in (r+d (utput and emp+(yment,. 7,hieed ,ut) in tari**) but n(t in n(ntari** trade barrier)d. 7b(+i)hed a++ barrier) t( trade in ari,u+tura+ pr(du,t)

10. #he ?enera+ 7reement (n #ari**) and #rade and it) )u,,e))(r9 theW(r+d #rade Oranizati(n9 hae re)u+ted in:a. #erminati(n (* ep(rt )ub)idie) app+ied t( manu*a,tured ((d)

b. #erminati(n (* imp(rt tari**) app+ied t( manu*a,tured ((d),. En,(uraement (* bear-thy-neihb(r p(+i,ie)d. 8edu,ti(n) in trade barrier) ia mu+ti+atera+ ne(tiati(n)

11. A(r the !nited State)9 hi,h (ranizati(n make) +(an) t( *(rein buyer) (* !.S. manu*a,tured ((d)a. Ep(rt-$mp(rt =ank

b. (me)ti, $nternati(na+ Sa+e) C(rp(rati(n,. Oranizati(n *(r E,(n(mi, C((perati(n and ee+(pmentd. C(mm(dity Credit C(rp(rati(n

1. #he hih p(int (* !.S. pr(te,ti(n ,u+minated ith the pa))ae (* the:a. Sm((t-'a+ey 7,t (* 1@30

b. ?enera+ 7reement) (n #ari**) and #rade in 1@4<,. #rade 8edu,ti(n 7,t (* 1@6

d. 7dBu)tment 7))i)tan,e 7,t (* 1@<0

7/21/2019 ECO 305 Week 4 Quiz


13. C(unterai+in dutie) are intended t( neutra+ize any un*air adantaethat *(rein ep(rter) miht ain (er d(me)ti, pr(du,er) be,au)e (* *(rein:

a. #ari**) b. Sub)idie),. Qu(ta)d. =uy-nati(na+ p(+i,ie)

14. #rade the(ry )ue)t) that the !nited State) (u+d ain *r(m a )ub)idy pr(ided by apan t( it) ,a+,u+at(r pr(du,er) i* the ain) t( 7meri,an ,(n)umer) (*,a+,u+at(r) m(re than (**)et the +())e) t( 7meri,an ,a+,u+at(r pr(du,er). #hi) (,,ur)

a) +(n a) the !nited State):a. $) a net imp(rter (* ,a+,u+at(r)

b. $) a net ep(rter (* ,a+,u+at(r),. 'a) an ab)(+ute adantae in ,a+,u+at(r pr(du,ti(nd. 'a) a ,(mparatie adantae in ,a+,u+at(r pr(du,ti(n

15. !nder the (riina+ pr(i)i(n) (* the 8e,ipr(,a+ #rade 7reement) 7,t9the pre)ident (* the !nited State) a) auth(rized t( ,ut tari**) up t(:a. 10 per,ent

b. 50 per,ent,. <5 per,entd. 100 per,ent

16. #he !.S. trade-remedy +a) ,(u+d e)tab+i)h a++ (* the *(++(ine,ept:

a. $mp(rt tari**) t( pr(te,t !.S. *irm) )eri(u)+y inBured by *(rein ,(mpetiti(n b. C(unterai+in dutie) hi,h neutra+ize *(rein ep(rt )ub)idie),. 7ntidumpin dutie) hi,h pr(te,t !.S. *irm) *r(m imp(rt) )(+d at +e))-than-*air-a+ued. E,(n(mi, )an,ti(n) +eied aain)t h()ti+e nati(n)

1<. #he prin,ip+e (* n(rma+ trade re+ati(n) Dm()t-*a(red-nati(ntreatmenta) e)tab+i)hed ith the pa))ae (* the:

a. A(rdney-,Cumber 7,t (* 1@ b. Sm((t-'a+ey 7,t (* 1@30

7/21/2019 ECO 305 Week 4 Quiz


,. 8e,ipr(,a+ #rade 7reement) 7,t (* 1@34d. #rade 7,t (* 1@<4

1>. #hr(uh(ut the p()t-W(r+d War $$ era9 the imp(rtan,e (* tari**) a) atrade barrier ha):a. $n,rea)ed

b. e,rea)ed,. 8emained the )amed. ;(ne (* the ab(e

1@. 7) a ay (* he+pin 7meri,an *irm) trade in the (r+d market9 !.S.trade +a pr(ide) antitru)t eempti(n) *(r h(riz(nta+ ,(mbinati(n) (* 7meri,an*irm) enaed )(+e+y in ep(rt trade. Su,h *irm) are permitted t( *(rm:a. Ep(rt trade a))(,iati(n)

b. (me)ti, internati(na+ )a+e) ,(rp(rati(n),. Ep(rt-imp(rt bank)d. C(mm(dity )a+e) ,(rp(rati(n)

0. HHHH attempt t( pr(du,e a *air and *ree-tradin enir(nment in hi,hthere ei)t) a +ee+ p+ayin *ie+d.a. #rade-remedy +a)

b. $ndu)tria+ p(+i,ie),. Stratei, trade p(+i,ie)d. E,(n(mi, )an,ti(n)

1. Supp()e the !nited State) imp()e) trade )an,ti(n) Dep(rt 2u(ta) (nrain )(+d t( the 8u))ian). 7))umin (ther nati(n) d( n(t in,rea)e rain ep(rt) t( the8u))ian)9 a++ (* the *(++(in (u+d (,,ur e,ept:a. ?rain pri,e) (u+d ri)e in 8u))ia

b. C(n)umer )urp+u) (u+d de,rea)e *(r the 8u))ian),. ?rain pri,e) (u+d ri)e in the !nited State)d. Ep(rt reenue) (u+d de,rea)e *(r !.S. pr(du,er)

7/21/2019 ECO 305 Week 4 Quiz


. $n 1@>0 the !nited State) ann(un,ed an embar( (n rain ep(rt) t(the S(iet !ni(n in re)p(n)e t( the S(iet armed ina)i(n (* 7*hani)tan. #heembar( a) main+y re)i)ted by:a. !.S. rain ,(n)umer) and pr(du,er) (* bread

b. !.S. *armer) and rain ,(mpanie)

,. ?rain pr(du,er) in *(rein ,(untrie)d. ?rain ,(n)umer) in *(rein ,(untrie)

3. Ep(rt embar(e) indu,e reater +())e) in ,(n)umer )urp+u) *(r thetaret ,(untry:a. #he +e))er it) initia+ dependen,e (n *(rein pr(du,ed ((d)

b. #he m(re e+a)ti, the taret ,(untry) demand ),hedu+e,. #he reater the aai+ab+e (utput *r(m a+ternatie )upp+ier)

d. #he m(re ine+a)ti, the taret ,(untry) )upp+y ),hedu+e

4. Supp()e the pre)ident +(er) tari**) (n radi() a) the re)u+t (*ne(tiati(n) under the trade areement) pr(ram. 8adi( pr(du,er) in the !nitedState) ,an appea+ under the:a. E),ape ,+au)e i* ri)in imp(rt) )ub)tantia++y inBure the !.S. radi( indu)try

b. E),ape ,+au)e i* ri)in unemp+(yment (,,ur) een th(uh imp(rt) remainun,haned,. $n*ant indu)try ,+au)e i* ri)in imp(rt) ,au)e unemp+(yment t( ri)e am(n!.S. radi( (rker)d. $n*ant indu)try ,+au)e i* ri)in imp(rt) re)u+t in +())e) *(r !.S. radi(,(mpanie)

5. urin the pa)t *(ur de,ade):a. ;(ntari** barrier) D;#=) and tari**) hae in,rea)ed in imp(rtan,e

b. ;#=) and tari**) hae de,rea)ed in imp(rtan,e,. ;#=) hae in,rea)ed and tari**) hae de,rea)ed in imp(rtan,ed. ;#=) hae de,rea)ed and tari**) hae in,rea)ed in imp(rtan,e

6. #he )tr(ne)t p(+iti,a+ pre))ure *(r a trade p(+i,y that re)u+t) in hiher pr(te,ti(ni)m ,(me) *r(m:a. (me)ti, (rker) +(bbyin *(r imp(rt re)tri,ti(n)

b. (me)ti, (rker) +(bbyin *(r ep(rt re)tri,ti(n)

,. (me)ti, ,(n)umer) +(bbyin *(r ep(rt re)tri,ti(n)d. (me)ti, ,(n)umer) +(bbyin *(r imp(rt re)tri,ti(n)

7/21/2019 ECO 305 Week 4 Quiz


<. #he !ruuay 8(und (* trade ne(tiati(n) a) primari+y ,(n,erned

ith:a. $mp(rt tari**)

b. Ep(rt tari**),. E,(n(mi, )an,ti(n)d. ;(ntari** trade barrier)

>. #he !ruuay 8(und (* trade ne(tiati(n) +(ered:a. #rade )an,ti(n) +eied aain)t S(uth 7*ri,a

b. #rade )an,ti(n) +eied aain)t the S(iet !ni(n,. #ari**)9 but n(t n(ntari** trade barrier)d. #ari**) a) e++ a) n(ntari** trade barrier)

@. #he aerae tari** rate t(day (n dutiab+e imp(rt) in the !nited State) i)appr(imate+y:a. 5 per,ent (* the a+ue (* imp(rt)

b. 15 per,ent (* the a+ue (* imp(rt),. 0 per,ent (* the a+ue (* imp(rt)d. 5 per,ent (* the a+ue (* imp(rt)

30. #h()e h( arue in *a(r (* imp(rt pr(te,ti(n enera++y ie theimpre))i(n that )u,h re)tri,ted trade i++:a. e,rea)e the +ee+ (* nati(na+ )e,urity

b. %r(ide bene*it) t( )(me parti,u+ar indu)try

,. %r(ide bene*it) t( the entire nati(nd. ;(t yie+d e+*are +())e) *(r the nati(n

31. $n 1@@0 the !nited State) and it) a++ie) imp()ed trade embar(e) (nep(rt)/imp(rt) t(/*r(m $ra2 in re)p(n)e t( it) ina)i(n (* Fuait. #he embar(e)(u+d indu,e )ma++er +())e) in $ra2) ,(n)umer )urp+u) the:a. "e))er it) initia+ dependen,e (n *(rein pr(du,t)

b. "e)) e+a)ti, $ra2) demand ),hedu+e

,. "e))er the aai+ab+e (utput *r(m a+ternatie )upp+ier)d. (re ine+a)ti, $ra2) )upp+y ),hedu+e

7/21/2019 ECO 305 Week 4 Quiz


3. $n !.S. trade +a9 Se,ti(n 301 ,a)e) in(+e a,,u)ati(n) (*:

a. $nternati(na+ dumpin by !.S. ,(mpanie) b. Au++-,()t pri,in by !.S. ,(mpanie),. !n*air trade pra,ti,e) by *(rein nati(n)d. #rade embar(e) by *(rein nati(n)

33. $ndu)tria+ p(+i,y attempt) t( *u+*i++ a++ (* the *(++(in (bBe,tie)e,ept:a. $mpr(in the in*ra)tru,ture *(r an indu)try

b. Ea)in tran)iti(n) *(r (rker) in de,+inin indu)trie),. Supp(rtin tr(ub+ed indu)trie) i* the di**i,u+ty i) temp(raryd. A()terin indu)trie) hi,h (**er +(n-run ,(mparatie di)adantae

34. C(unterai+in dutie) may be imp()ed:a. $n re)p(n)e t( a *(rein ep(rt )ub)idy

b. $n re)p(n)e t( a *(rein antidumpin tari** ,. #( pr(m(te ep(rt) (* d(me)ti, ,(mpanie)d. #( pr(m(te imp(rt) (* d(me)ti, ,(n)umer)

35. #he W(r+d #rade Oranizati(n pr(ide) *(r a++ (* the *(++(in e,ept:a. #he u)ae (* the n(rma+-trade-re+ati(n Dm()t-*a(red-nati(n ,+au)e

b. 7))i)tan,e in the )ett+ement (* trade di)areement),. u+ti+atera+ tari** redu,ti(n)d. =i+atera+ tari** redu,ti(n)

36. $n !.S. trade +a9 hi,h mea)ure permit) the +eyin (* re)tri,ti(n) (n*air+y traded imp(rt) that harm (r threaten t( harm 7meri,an manu*a,turer)a. 7ntidumpin duty

b. C(unterai+in duty,. ;ati(na+ )e,urity ,+au)ed. E),ape ,+au)e

7/21/2019 ECO 305 Week 4 Quiz


3<. Whi,h internati(na+ (ranizati(n )tipu+ate) pr(,edure) *(r the)ett+ement (* internati(na+ trade di)pute)a. W(r+d #rade Oranizati(n

b. W(r+d =ank

,. $nternati(na+ (netary Aundd. Oranizati(n (* E,(n(mi, ee+(pment

3>. #he m()t re,ent r(und (* mu+ti+atera+ trade ne(tiati(n) i) the:a. Fennedy 8(und

b. #(ky( 8(und,. (ha 8(undd. ?enea 8(und

3@. $n 1@>6 the !nited State) ena,ted the C(mprehen)ie 7nti-7partheid7,t hi,h pr(ided *(r a++ (* the *(++(in e,ept the terminati(n (*:a. ;e !.S. +(an) t( the S(uth 7*ri,an (ernment

b. ;e !.S. ine)tment in S(uth 7*ri,a,. !.S. imp(rt) (* S(uth 7*ri,an (+d ,(in)d. !.S. imp(rt) (* a++ S(uth 7*ri,an ((d)

7))ume =(ein $n,. D(* the !nited State) and 7irbu) $ndu)trie D(* Eur(pe ria+ *(rm(n(p(+y pr(*it) in the Canadian air,ra*t market. Supp()e the t( *irm) *a,eidenti,a+ ,()t and demand ,(nditi(n)9 a) )een in Aiure 6.1.

Aiure 6.1. Stratei, #rade %(+i,y: =(ein er)u) 7irbu)

40. 8e*errin t( Aiure 6.19 a))ume that =(ein i) the *ir)t t( enter theCanadian market. With(ut a (ernmenta+ )ub)idy9 the *irm maimize) pr(*it) by)e++in HHHH air,ra*t at a pri,e (* GHHHH9 and rea+ize) pr(*it) t(ta+in GHHHH.a. 49 G1 mi++i(n9 G16 mi++i(n

b. 49 G16 mi++i(n9 G1 mi++i(n,. >9 G1 mi++i(n9 G16 mi++i(nd. >9 G16 mi++i(n9 G1 mi++i(n

7/21/2019 ECO 305 Week 4 Quiz


41. C(n)ider Aiure 6.1. 7t the m(n(p(+y pri,e a) e)tab+i)hed by =(ein9Canadian ,(n)umer) rea+ize GHHHH (* ,(n)umer )urp+u) *r(m the aai+abi+ity (*air,ra*t.a. G4 mi++i(n

b. G> mi++i(n

,. G1 mi++i(nd. G16 mi++i(n

4. C(n)ider Aiure 6.1. Supp()e the Eur(pean (ernment pr(ide)7irbu) a )ub)idy (* G4 mi++i(n (n ea,h air,ra*t manu*a,tured9 and that the )ub)idy,(nin,e) =(ein t( eit the Canadian market. 7) the m(n(p(+y )e++er9 7irbu)maimize) pr(*it by )e++in HHHH air,ra*t at a pri,e (* GHHHH9 and rea+ize) pr(*it)t(ta+in GHHHH.

a. 69 G10 mi++i(n9 G36 mi++i(n b. 69 G1 mi++i(n9 G4 mi++i(n,. 19 G10 mi++i(n9 G36 mi++i(nd. 19 G1 mi++i(n9 G4 mi++i(n

43. 8e*errin t( Aiure 6.19 the t(ta+ ,()t (* the 7irbu) )ub)idy t( theEur(pean tapayer e2ua+):a. G16 mi++i(n

b. G0 mi++i(n,. G4 mi++i(nd. G> mi++i(n

44. 8e*errin t( Aiure 6.19 the 7irbu) )ub)idy +ead) t( a Danin,rea)e/de,rea)e in Canadian ,(n)umer )urp+u) (* GHHHH9 a) ,(mpared t( the,(n)umer )urp+u) that ei)ted in the ab)en,e (* a )ub)idy.

a. $n,rea)e (* G> mi++i(n b. $n,rea)e (* G10 mi++i(n,. e,rea)e (* G> mi++i(nd. e,rea)e (* G10 mi++i(n

45. C(n)ider Aiure 6.1. A(r Eur(pe a) a h(+e D7irbu) and Eur(peantapayer)9 the )ub)idy +ead) t( a Dan in,rea)e/de,rea)e in net reenue) (* GHHHH.a. $n,rea)e (* G1 mi++i(n

b. $n,rea)e (* G16 mi++i(n,. e,rea)e (* G1 mi++i(n

7/21/2019 ECO 305 Week 4 Quiz


d. e,rea)e (* G16 mi++i(n

Aiure 6. i++u)trate) the ,a+,u+at(r market *(r ei,(9 a))umed t( be a )ma++ nati(nthat i) unab+e in*+uen,e the S(uth F(rean D(r+d pri,e. 7))ume the S(uth F(rean

pri,e t( be G60 per ,a+,u+at(r.

Aiure 6.. E**e,t) (* an Ep(rt Sub)idy

46. C(n)ider Aiure 6.. With *ree trade9 ei,an ,(n)umer) pur,ha)e HHHH ,a+,u+at(r)9 ei,an *irm) pr(du,e HHHH ,a+,u+at(r)9 and HHHH ,a+,u+at(r) areimp(rted.

a. 109 49 6 b. 109 69 4,. 109 >9 d. 109 9 >

4<. C(n)ider Aiure 6.. With *ree trade9 ei,an) attain GHHHH (*,(n)umer )urp+u) *r(m the aai+abi+ity (* ,a+,u+at(r)9 hi+e ei,an pr(du,er )urp+u)e2ua+) GHHHH.a. G4009 G00

b. G009 G400,. G5009 G1>0d. G5009 G40

4>. C(n)ider Aiure 6.. #( he+p it) *irm) *urther penetrate ep(rt market)9)upp()e the S(uth F(rean (ernment pr(ide) them a pr(du,ti(n )ub)idy (* G0 per

,a+,u+at(r. With the )ub)idy9 S(uth F(rean *irm) ,hare a pri,e (* GHHHH and ep(rt HHHH ,a+,u+at(r) t( ei,(.a. G409 >

b. G409 10,. G09 >d. G09 10

4@. C(n)ider Aiure 6.. #he S(uth F(rean )ub)idy he+p)/hurt) ei,an

manu*a,turer)9 )in,e their pr(du,er )urp+u) ri)e)/*a++) by GHHHH.a. 'e+p)9 ri)e)9 G60

7/21/2019 ECO 305 Week 4 Quiz


b. 'e+p)9 ri)e)9 G100,. 'urt)9 *a++)9 G60d. 'urt)9 *a++)9 G100

50. C(n)ider Aiure 6.. 7) a re)u+t (* the S(uth F(rean )ub)idy9ei,an) *ind their ,(n)umer )urp+u):a. 8i)in by G160

b. 8i)in by G0,. Aa++in by G160d. Aa++in by G0

51. C(n)ider Aiure 6.. A(r ei,() pr(du,er) and ,(n)umer) a) ah(+e9 the S(uth F(rean )ub)idy +ead) t( a:a. G10 e+*are ain

b. G30 e+*are ain,. G10 e+*are +())d. G30 e+*are +())

Aiure 6.3 repre)ent) the $ra2i ,(mputer market. 7))ume $ra2 pur,ha)e) a++ (* it),(mputer) *r(m the !nited State).

Aiure 6.3 $ra2i C(mputer arket and E,(n(mi, San,ti(n)

5. C(n)ider Aiure 6.3. With *ree trade9 $ra2 pur,ha)e) HHHH ,(mputer) ata pri,e (* GHHHH9 and rea+ize) GHHHH (* ,(n)umer )urp+u) *r(m the aai+abi+ity (*,(mputer).

a. 309 G390009 G59000 b. 309 G390009 G359000,. 309 G390009 G459000d. 309 G390009 G559000

53. C(n)ider Aiure 6.3. $n re)p(n)e t( $ra2) armed ina)i(n (*neihb(rin ,(untrie)9 )upp()e the !nited State) imp()e) a partia+ embar( that +imit)ep(rt) t( $ra2 t( 10 ,(mputer). #he ep(rt 2u(ta +ead) t( an in,rea)e/de,rea)e in the

pri,e (* ,(mputer) e2ua+ t( GHHHH9 and an in,rea)e/de,rea)e in ,(n)umer )urp+u)e2ua+ t( GHHHH.

7/21/2019 ECO 305 Week 4 Quiz


a. $n,rea)e9 G0009 de,rea)e9 G409000 b. $n,rea)e9 G40009 de,rea)e9 G609000,. e,rea)e9 G0009 in,rea)e9 G409000d. e,rea)e9 G40009 in,rea)e9 G609000

54. C(n)ider Aiure 6.3. O* the 2u(ta-indu,ed ,hane in $ra2i ,(n)umer)urp+u)9 GHHHH i) n(t tran)*erred t( (ther )e,t(r) (* $ra2) e,(n(my and repre)ent)deadeiht +()).a. G5000

b. G109000,. G159000d. G09000

55. C(n)ider Aiure 6.3. O* the 2u(ta-indu,ed ,hane in $ra2i ,(n)umer)urp+u)9 the am(unt (* the ,hane in $ra2) ,(n)umer )urp+u) that i) tran)*erred t((ther )e,t(r) (* $ra2) e,(n(my i) ,aptured by the !nited State) a):a. #a reenue

b. Ep(rt reenue,. %r(du,er )urp+u)d. C(n)umer )urp+u)

56. C(n)ider Aiure 6.3. A(r the !nited State)9 the ep(rt 2u(ta re)u+t) in aDan:a. $mpr(ement in it) term) (* trade ith $ra2

b. $n,rea)e in it) ep(rt reenue,. $n,rea)e in d(me)ti, ,(mputer pri,e)d. e,rea)e in d(me)ti, ,(n)umer )urp+u)

5<. #he imp+i,it indu)tria+ p(+i,ie) (* the !.S. (ernment hae in,+uded:a. A(rmu+atin indu)try-)pe,i*i, e,(n(mi, p(+i,ie) de)ined t( pr(m(te nati(na+,hampi(n)

b. ;ati(na+izin ba)i, indu)trie) )u,h a) )tee+ and aut(),. En,(urain ,arte+izati(n (* air,ra*t and a+uminum manu*a,turer)d. $mpr(in the )ettin *(r indu)try )u,h a) ,(mmuni,ati(n) and in*ra)tru,ture

7/21/2019 ECO 305 Week 4 Quiz


5>. E,(n(mi, )an,ti(n) are m()t e**e,tie in ,au)in the taret nati(n t(m(di*y it) behai(r hen the:a. #aret nati(n had ne+iib+e e,(n(mi, re+ati(n)hip) ith the imp()in nati(n

pri(r t( the )an,ti(n) b. %e(p+e (* the taret nati(n hae eak ,u+tura+ tie) t( the pe(p+e (* the

imp()in nati(n,. San,ti(n) are +eied by a +are number (* nati(n)d. #aret (ernment i) )upp(rted by the maB(rity (* it) pe(p+e

5@. $n 1@@5 the HHHH a) e)tab+i)hed t( admini)ter the ne +(ba+ traderu+e) areed in the !ruuay 8(und (* mu+ti+atera+ trade ne(tiati(n).a. W(r+d #rade Oranizati(n

b. Oranizati(n *(r E,(n(mi, C((perati(n and ee+(pment

,. ?enera+ 7reement (n #ari**) and #raded. !nited ;ati(n)

60. $n 1@@5 the ?enera+ 7reement (n #ari**) and #rade a) rep+a,ed bythe HHHH.a. 7en,y *(r $nternati(na+ ee+(pment

b. Oranizati(n *(r E,(n(mi, C((perati(n and ee+(pment,. !nited ;ati(n) Center *(r #rade and ee+(pmentd. W(r+d #rade Oranizati(n

61. #he m()t imp(rtant determinant) (* )an,ti(n) in,+udea. Cu+tura+ *a,t(r) in,+udin nati(na+i)ti, attitude)

b. Strenth (* p(+iti,a+ (pp()iti(n in the taretin nati(n,. #he number (* nati(n) imp()in )an,ti(n)d. 7++ (* the ab(e

6. $ndu)tria+ p(+i,ie)a. 8e2uire *(rma+ ep+i,it e**(rt) by (ernment)

b. ay be imp+i,it,. 'ae neer been u)ed by the !.S. (ernmentd. =(th a and b

7/21/2019 ECO 305 Week 4 Quiz


63. #rade adBu)tment a))i)tan,e p(+i,ie)a. Can re)(+e a++ (rker) ,ha++ene) t( *ree trade

b. 7ttempt t( )hare ain) *r(m *ree trade ith di)adantaed (rker),. 'ae neer been u)ed t( )u)tain a +()in bu)ine)) ,(n,ernd. 7re *inan,ed by )tate and +(,a+ ta reenue)

64. #he !nited State)a. 'a) been a heay u)er (* antidumpin +a) t( pr(te,t d(me)ti, pr(du,er)

b. 'a) rare+y u)ed antidumpin +a) t( pr(te,t d(me)ti, pr(du,er),. 'a) tareted antidumpin a,ti(n aain)t China9 apan9 Canada9 $ta+y9 and?ermanyd. =(th a and ,

().E/,LSE

1. #he hih p(int (* !.S. pr(te,ti(ni)m (,,urred ith the pa))ae (* theFennedy 7,t in the 1@60).

. With the pa))ae (* the Sm((t-'a+ey 7,t in 1@309 !.S. aeraetari**) ere rai)ed t( (er 50 per,ent (n pr(te,ted imp(rt).

3. %r(p(nent) (* the Sm((t-'a+ey 7,t (* 1@30 ieed it a) a mean) (*,(mbatin d(me)ti, unemp+(yment.

4. $t i) enera++y areed that the Sm((t-'a+ey 7,t (* 1@30 +ed t(

impr(ement) in !.S. ep(rt) and an (era++ in,rea)e in !.S. (utput and emp+(yment.

5. 7,,(rdin t( the 8e,ipr(,a+ #rade 7reement) 7,t (* 1@349 the%re)ident ,(u+d +(er tari**) by up t( 10 per,ent (* the ei)tin +ee+ ith(ut,(nre))i(na+ appr(a+.

6. !nder the n(rma+-trade-re+ati(n) Dm()t-*a(red-nati(n prin,ip+e9 t(

nati(n) aree t( app+y tari**) t( ea,h (ther at rate) a) +( a) th()e app+ied t( any (ther nati(n.

7/21/2019 ECO 305 Week 4 Quiz


<. 7,,(rdin t( the n(rma+-trade-re+ati(n) Dm()t-*a(red-nati(n prin,ip+e9 i* the !nited State) etend) A; treatment t( China and then rant) a +(

tari** (n imp(rt) (* )hirt) *r(m S(uth F(rea9 the !nited State) i) (b+iated t( pr(idethe identi,a+ +(-tari** (n imp(rt) (* )hirt) *r(m China.

>. !.S. tari**) (n imp(rt) *r(m ,(untrie) i))ued n(rma+-trade-re+ati(n)Dm()t-*a(red-nati(n )tatu) are (*ten three (r *(ur time) a) hih a) th()e (n,(mparab+e imp(rt) *r(m nati(n) n(t re,eiin that )tatu).

@. 7,,(rdin t( the ?enera+ 7reement (n #ari**) and #rade and it))u,,e))(r9 the W(r+d #rade Oranizati(n9 (n+y bi+atera+ trade ne(tiati(n) ,an take

p+a,e beteen a ,(untry and it) tradin partner).

10. ember) (* the ?enera+ 7reement (n #ari**) and #rade and it))u,,e))(r9 the W(r+d trade thr(uh #rade Oranizati(n9 aree t( the prin,ip+e (*n(ndi),riminati(n in trade and the redu,ti(n (* trade barrier) by mu+ti+atera+ne(tiati(n).

11. #he !ruuay 8(und (* trade ne(tiati(n) re)u+ted in the ?enera+7reement (n #ari**) and #rade bein )u,,eeded by the W(r+d #rade Oranizati(n.

1. #he (n+y member) (* the ?enera+ 7reement (n #ari**) and #rade andit) )u,,e))(r9 the W(r+d #rade Oranizati(n9 are dee+(pin ,(untrie) rather thandee+(ped ,(untrie).

13. 7,,(rdin t( the *a)t-tra,k pr(i)i(n (* !.S. trade +a9 (n,e the%re)ident ha) ,(mp+eted trade ne(tiati(n)9 their (ut,(me i) )ubBe,t t( a (te Dith(utamendment in C(nre)) ithin @0 +ei)+atie day) (* )ubmi))i(n.

14. #he *a)t-tra,k pr(i)i(n (* !.S. trade +a ha) the a**e,t (* )peedin upthe timetab+e durin hi,h the %re)ident ne(tiate) trade areement) ith *(rein

(ernment).

7/21/2019 ECO 305 Week 4 Quiz


15. #he main *(,u) (* the !ruuay 8(und (* mu+ti+atera+ tradene(tiati(n) a) (n tari** barrier) rather than n(ntari** trade barrier).

16. 7+th(uh the !ruuay 8(und (* mu+ti+atera+ trade ne(tiati(n))u,,eeded in redu,in n(ntari** trade barrier)9 it ,(u+d n(t a,hiee redu,ti(n) in tari**trade barrier).

1<. 7m(n the ,(de) (* ,(ndu,t addre))ed at the #(ky( 8(und (*mu+ti+atera+ trade ne(tiati(n) ere ,u)t(m) a+uati(n9 pr(du,t )tandard)9 )ub)idie)and ,(unterai+in dutie)9 (ernment pr(,urement p(+i,ie)9 and imp(rt +i,en)in

pr(,edure).

1>. !nder the (ernment pr(,urement p(+i,y (* the W(r+d #radeOranizati(n9 *edera+-)tate-+(,a+ (ernment) are preented *r(m di),riminatin in*a(r (* the pr(du,t) (* d(me)ti, )upp+ier) (n ,(ntra,t) a+ued at G1 mi++i(n andm(re.

1@. !n+ike the #(ky( 8(und (* mu+ti+atera+ trade ne(tiati(n)9 the!ruuay 8(und addre))ed the i))ue) (* inte++e,tua+ pr(perty pr(te,ti(n9 trade barrier)in )eri,e)9 and ari,u+tura+ )ub)idie).

0. #he !.S. trade-remedy +a) attempt t( redre)) hard)hip) *(r !.S. *irm)re)u+tin *r(m a,ti(n) and p(+i,ie) (* *(rein *irm) and (ernment).

1. 7,,(rdin t( !.S. trade +a9 the e),ape ,+au)e pr(ide) re+ie* t( !.S.*irm) due t( un*air *(rein ,(mpetiti(n.

. 7,,(rdin t( the e),ape ,+au)e9 temp(rary trade re)tri,ti(n) may beimp()ed in indu)trie) here d(me)ti, pr(du,er) are )ub)tantia++y bein harmed by)urin imp(rt).

7/21/2019 ECO 305 Week 4 Quiz


3. #he purp()e (* ,(unterai+in dutie)9 a) +eied by the d(me)ti,(ernment9 i) t( neutra+ize imp(rt tari**) imp()ed by *(rein (ernment).

4. !nder the pr(i)i(n) (* the W(r+d #rade Oranizati(n9 Canada (u+dhae the riht t( imp()e ,(unterai+in dutie) (n imp(rt) (* S(uth F(rean )tee+ henthe S(uth F(rean (ernment pr(ide) ep(rt )ub)idie) t( it) )tee+maker).

5. E,(n(mi, the(ry )ue)t) that i* Aran,e i) a net imp(rter (*aut(m(bi+e)9 h()e pr(du,ti(n i) )ub)idized by the F(rean (ernment9 the (era++e+*are (* Aran,e de,rea)e) be,au)e (* the F(rean )ub)idy.

6. 7n antidumpin duty +eied (n imp(rt) (* *(rein-pr(du,ed )tee+ +ead)t( an in,rea)e in ,(n)umer )urp+u) in the h(me ,(untry.

<. !.S. antidumpin dutie) are intended t( neutra+ize ep(rt) t( the!nited State) at pri,e) be+( aerae t(ta+ ,()t (r ep(rt) t( the !nited State) at

pri,e) +(er than th()e ,hared in the ep(rter) h(me market.

>. $nte++e,tua+ pr(perty re*er) t( h(+din) (* rare b((k) and pie,e) (* artthat are traded (n the (r+d market.

@. C(pyriht)9 trademark)9 and patent) are u)ed t( pr(te,t the inte++e,tua+ pr(perty (* a nati(n *r(m *(rein imitat(r).

30. !nder the trade adBu)tment a))i)tan,e pr(ram9 a d(me)ti, *irm (r(rker ,an *i+e *(r (ernmenta+ a))i)tan,e (n+y i* it dem(n)trate) that it )u**erede,(n(mi, hard)hip due t( imp(rt) (* *(rein-)ub)idized ((d).

31. $ndu)tria+ p(+i,y attempt) t( *()ter the dee+(pment (* indu)trie) that(**er +(n-run ,(mparatie di)adantae) and hi,h are in)u+ated *r(m (ther )e,t(r)(* the e,(n(my.

7/21/2019 ECO 305 Week 4 Quiz


3. urin the p()t W(r+d War $$ era9 the !nited State) ha) ad(ptedep+i,it indu)tria+ p(+i,ie) )imi+ar t( th()e (* Aran,e and apan.

33. $ndu)tria+ p(+i,ie) (* the !.S. (ernment hae in,+uded )ub)idizin parti,u+ar *irm) t( pr(m(te nati(na+ ,hampi(n)9 nati(na+izin ba)i, indu)trie)9 anden,(urain ,arte+izati(n (* indu)trie).

34. #he Ep(rt-$mp(rt =ank pr(ide) ep(rt-,redit )ub)idie) t( !.S. pr(du,er) (* ari,u+tura+ ((d).

35. aB(r bene*i,iarie) (* ep(rt-,redit )ub)idie)9 ranted by the Ep(rt-$mp(rt =ank9 hae in,+uded !.S. pr(du,er) (* air,ra*t9 te+e,(mmuni,ati(n)9 and

p(er-eneratin e2uipment.

36. #he C(mm(dity Credit C(rp(rati(n make) aai+ab+e ep(rt ,redit*inan,in *(r !.S. ari,u+tura+ ep(rt).

3<. 7) a ay (* he+pin !.S. bu)ine)) *irm) trade in the (r+d market (n am(re e2ua+ term) ith their (ranized *(rein ,(mpetit(r)9 the !.S. (ernment

permit) them t( *(rm ep(rt trade a))(,iati(n) and ep(rt tradin ,(mpanie).

3>. $* the !.S. (ernment pur)ued a kn(+ede-ba)ed r(th p(+i,y9 it(u+d )ub)idize parti,u+ar *irm) t( he+p them ,(mpete in the (r+d e,(n(my.

3@. $n the p()t W(r+d War $$ era9 the apane)e (ernment *(rmedindu)tria+ p(+i,ie) t( en,(urae the dee+(pment (* it) )tee+9 aut(9 )hipbui+din9 andma,hine t((+ indu)trie).

40. !n+ike apan and the !nited State)9 Aran,e ha) re*rained *r(m *(rminep+i,it indu)tria+ p(+i,ie) t( enhan,e the ,(mpetitiene)) (* it) nati(na+ ,hampi(n).

7/21/2019 ECO 305 Week 4 Quiz


41. 7,,(rdin t( the )tratei,- trade- p(+i,y hyp(the)i)9 (ernmenta+)ub)idie) ranted t( d(me)ti, pr(du,er) ,an he+p them in ,apturin e,(n(mi, pr(*it)*r(m *(rein ,(mpetit(r).

4. #he )tratei,-trade-p(+i,y hyp(the)i) a))ume) that d(me)ti, *irm)(perate under in,rea)in ,()t ,(nditi(n) a) e++ a) in per*e,t+y ,(mpetitie market).

43. 7,,(rdin t( the )tratei,-trade-p(+i,y hyp(the)i)9 (ernment ,ana+ter the term) (* ,(mpetiti(n t( *a(r d(me)ti, ,(mpanie)9 thu) in,rea)in their

pr(*it) at the epen)e (* their ria+).

44. #he ,+a))i,a+ the(ry (* ,(mparatie adantae a))ume) that *irm)(perate in imper*e,t+y ,(mpetitie market)9 hi+e the the(ry (* )tratei, trade p(+i,ya))ume) that *irm) (perate in per*e,t+y ,(mpetitie market).

45. 7,,(rdin t( the )tratei,-trade-p(+i,y hyp(the)i)9 a )ub)idy ranted t(d(me)ti, ep(rter) may +ead t( in,rea)ed ep(rt pr(*it) hi,h m(re than (**)et the,()t (* the )ub)idy t( d(me)ti, tapayer).

46. =y redu,in aai+ab+e )upp+ie) (* a pr(du,t9 an ep(rt embar( +ead)t( *a++in pri,e) in the taret nati(n and in,rea)in taret-nati(n ,(n)umer )urp+u).

4<. 7))ume that the !nited State) i) the (n+y )upp+ier (* rain t( Chinaand that it +eie) a partia+ ep(rt embar( aain)t China. #he embar( +ead) t(in,rea)ed !.S. e+*are i* the re)u+tin impr(ement in the !.S. term) (* trade ith

China m(re than (**)et the ,()t) (* the +(er ep(rt (+ume t( China.

4>. E,(n(mi, )an,ti(n) are m()t e**e,tie in pre))urin the taret ,(untryt( m(di*y it) behai(r hen the )an,ti(n) are imp()ed by a )ma++ number (* ,(untrie)and hen the taret ,(untry had eak e,(n(mi, tie) t( the imp()in ,(untrie) be*(rethe )an,ti(n) ere initiated.

4@. $t i) ide+y re,(nized that the e,(n(mi, )an,ti(n) +eied aain)t $ra2in 1@@0 ere a maB(r *a,t(r ,au)in $ra2 t( ithdra it) mi+itary *(r,e) *r(m Fuait.

7/21/2019 ECO 305 Week 4 Quiz


50. 7))ume that 8u))ia ha) a ,(mparatie adantae in (dka. $* the!nited State) etend) 8u))ia the bene*it) (* the n(rma+-trade-re+ati(n) Dm()t *a(red

nati(nprin,ip+e9 !.S. ,(n)umer )urp+u) de,rea)e) in the (dka market.

51. 7))ume that the !nited State) imp(rt) ,hemi,a+) *r(m ?ermany. #radethe(ry predi,t) that i* the ?erman (ernment rant) an ep(rt )ub)idy t( it),hemi,a+ *irm)9 the (era++ e+*are (* the !nited State) i++ in,rea)e.

5. C(n,ernin indu)tria+ p(+i,y9 the !nited State) ha) nati(na+ized it)

maB(r indu)trie) in an attempt t( pr(m(te +(ba+ ,hampi(n).

53. #he !ruuay 8(und (* mu+ti+atera+ trade ne(tiati(n) )u,,eeded ine)tab+i)hin the W(r+d #rade Oranizati(n.

54. E)tab+i)hed in 1@@59 the W(r+d #rade Oranizati(n t((k ,hare (*admini)terin the ne +(ba+ trade ru+e) areed in the !ruuay 8(und (* mu+ti+atera+trade ne(tiati(n).

55. #he W(r+d #rade Oranizati(n brin) int( the mu+ti+atera+ tradin)y)tem manu*a,tured ((d) and ari,u+tura+ pr(du,t)9 but n(t trade in )eri,e)9inte++e,tua+ pr(perty pr(te,ti(n9 and ine)tment.

56. #he ?enera+ 7reement (n #ari**) and #rade a) *(unded in 1@@5 a) a)u,,e))(r t( the W(r+d #rade Oranizati(n.

S'O)( *SWE)

1. What i) the e))entia+ idea behind )tratei, trade p(+i,y

. What i) the ba)i) *(r trade adBu)tment a))i)tan,e

7/21/2019 ECO 305 Week 4 Quiz


ESS

1. 'a) indu)tria+ p(+i,y ,(ntributed )ini*i,ant+y t( apan) e,(n(mi,

r(th

. Ep+ain h( ad(,ate) (* )tratei, trade p(+i,y di**er *r(m the,+a))i,a+ *ree trader) in their treatment (* eterna+itie)

ECO 305 Week 4 Quiz

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