Question : 10.4   International Negotiations and Trade Policy 1) The simple model of : 1303542

 

 

10.4   International Negotiations and Trade Policy

 

1) The simple model of competition among political parties long used by political scientists tends to lead to the practical solution of selecting the

A) optimal tariff.

B) prohibitive tariff.

C) zero (free-trade) tariff.

D) the tariff rate favored by the median voter.

E) the tariff rate supported by exporters.

 

 

2) The General Agreement on Tariffs and Trade and the World Trade Organization have resulted in

A) termination of export subsidies applied to manufactured goods.

B) termination of import tariffs applied to manufactures.

C) termination of import tariffs applied to agricultural commodities.

D) termination of international theft of copyrights.

E) a number of rounds of multilateral trade agreements.

 

 

3) The General Agreement on Tariffs and Trade and the World Trade Organization have resulted in

A) the establishment of universal trade adjustment assistance policies.

B) the establishment of the European Union.

C) the reciprocal trade clause.

D) reductions in trade barriers via multilateral negotiations.

E) the total protection of all intellectual property rights.

 

4) Countervailing duties are intended to neutralize any unfair advantage that foreign exporters might gain because of foreign

A) tariffs.

B) subsidies.

C) quotas.

D) Local-Content legislation.

E) comparative advantage.

 

 

5) In 1980 the United States announced an embargo on grain exports to the Soviet Union in response to the Soviet invasion of Afghanistan. This embargo was mainly resisted by

A) U.S. grain consumers of bread.

B) U.S. grain producers.

C) foreign grain producers.

D) U.S. communists.

E) economists concerned with U.S. terms of trade.

 

 

6) Under U.S. commercial policy, the escape clause results in

A) temporary quotas granted to firms injured by import competition.

B) tariffs that offset export subsidies granted to foreign producers.

C) a refusal of the U.S. to extradite anyone who escaped political oppression.

D) tax advantages extended to minority-owned exporting firms.

E) tariff advantages extended to certain Caribbean countries in the U.S. market.

 

 

7) Under U.S. commercial policy, which clause permits the modification of a trade liberalization agreement on a temporary basis if serious injury occurs to domestic producers as a result of the agreement?

A) adjustment assistance clause

B) escape clause

C) most favored nation clause

D) prohibitive tariff clause

E) anti-dumping legislation

 

8) An issue never confronted effectively by GATT, but considered an important issue for WTO is that of

A) the promotion of freer World trade.

B) the promotion of freer World commodity trade.

C) the promotion of freer World services trade.

D) the lowering of tariff rates.

E) the liberalization of trade.

 

 

9) The political wisdom of choosing a tariff acceptable to the median U.S. voter is

A) a good example of the principle of the second best.

B) a good example of the way in which actual tariff policies are determined.

C) a good example of the principle of political negotiation.

D) not evident in actual tariff determination.

E) usually evident in actual tariff determination.

 

 

10) A game-theory explanation of the paradox that even though all countries would benefit if each chose free trade, in fact each tends to follow protectionist policies is

A) trade war.

B) collective action.

C) prisoner’s dilemma.

D) benefit-cost analysis.

E) rent seeking.

 

 

11) When the U.S. placed tariffs on French wine, France placed high tariffs on U.S. chickens. This is an example of

A) deadweight losses.

B) multilateral negotiations.

C) bilateral trade negotiations.

D) international market failures.

E) a trade war.

 

 

 

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