1) The group most likely to become involved in disputes concerning trade protectionism is consumers.
Answer: FALSE
2) Helping a struggling domestic company through import restrictions frequently causes other countries to retaliate.
Answer: TRUE
3) The countries most likely to be successful at using trade retaliation are large trading countries.
Answer: TRUE
4) On average, workers displaced by imports earn higher wages in the new jobs they accept.
Answer: FALSE
5) The infant-industry argument for trade protection holds that an industry needs government protection from imports until it becomes competitive enough in world markets.
Answer: TRUE
6) Infant-industry protection requires some segment of the economy to incur the higher costs when local production is inefficient.
Answer: TRUE
7) The argument for using protectionism to bring about industrialization in developing countries presumes that gains will occur because the industry will become internationally competitive.
Answer: FALSE
8) Export prices of primary products fluctuate less than export prices of manufactured products.
Answer: FALSE
9) Import substitution is a program promoting local production of products that would otherwise be imported.
Answer: TRUE
10) Export-led development refers to the off-shoring of production.
Answer: FALSE
11) 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.
Answer: TRUE
12) The comparable access argument for import restrictions is a more valid economic argument for products using small-scale technology than for products requiring substantial economies of scale to be competitive.
Answer: FALSE
13) Countries typically establish export restrictions to encourage the development of substitute products.
Answer: FALSE
14) Export controls are highly effective for digital products, such as computers, TVs, and cameras.
Answer: FALSE
15) The lowering of a foreign producer's price as a result of an imposed import tax is known as an optimum tariff.
Answer: TRUE
16) Home country consumers are typically active in preventing their domestic companies from dumping products into foreign markets.
Answer: FALSE
17) The essential-industry argument holds that industries with potential export capabilities should be protected.
Answer: FALSE
18) Import trade controls, but not export trade controls, can be used as a weapon of foreign policy.
Answer: FALSE
19) The most common type of tariff is the export tariff.
Answer: FALSE
20) An effective tariff is the sum of the ad valorem tariff plus the specific duty.
Answer: FALSE
21) Agricultural subsidies by developed countries impede the competitiveness of agricultural exports by developing countries.
Answer: TRUE
22) When customs officials set a value on which to place an import tariff, they ordinarily use the declared invoice price unless they doubt its authenticity.
Answer: TRUE
23) A quota is a quantitative limit on the amount of a product that can be traded.
Answer: TRUE
24) The purpose of "Made in" labels on imported products is to enable countries to keep records of the origin of imports.
Answer: FALSE
25) 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.
Answer: TRUE
26) At present there is little reciprocal recognition of professional licensing among countries.
Answer: TRUE
27) Companies that have integrated their supply chains internationally tend to lobby their home governments for increased protectionist measures.
Answer: FALSE
28) When a company is seeking protection from imports, it can usually improve its chances of getting that protection if it allies with most of the companies in the industry.
Answer: TRUE
29) The international regulatory situation for trade is becoming more, rather than less, complex.
Answer: TRUE
30) Every time countries enter a new trading agreement, service trade tends to grow more rapidly than merchandise trade.
Answer: FALSE
Answer: FALSE
2) Helping a struggling domestic company through import restrictions frequently causes other countries to retaliate.
Answer: TRUE
3) The countries most likely to be successful at using trade retaliation are large trading countries.
Answer: TRUE
4) On average, workers displaced by imports earn higher wages in the new jobs they accept.
Answer: FALSE
5) The infant-industry argument for trade protection holds that an industry needs government protection from imports until it becomes competitive enough in world markets.
Answer: TRUE
6) Infant-industry protection requires some segment of the economy to incur the higher costs when local production is inefficient.
Answer: TRUE
7) The argument for using protectionism to bring about industrialization in developing countries presumes that gains will occur because the industry will become internationally competitive.
Answer: FALSE
8) Export prices of primary products fluctuate less than export prices of manufactured products.
Answer: FALSE
9) Import substitution is a program promoting local production of products that would otherwise be imported.
Answer: TRUE
10) Export-led development refers to the off-shoring of production.
Answer: FALSE
11) 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.
Answer: TRUE
12) The comparable access argument for import restrictions is a more valid economic argument for products using small-scale technology than for products requiring substantial economies of scale to be competitive.
Answer: FALSE
13) Countries typically establish export restrictions to encourage the development of substitute products.
Answer: FALSE
14) Export controls are highly effective for digital products, such as computers, TVs, and cameras.
Answer: FALSE
15) The lowering of a foreign producer's price as a result of an imposed import tax is known as an optimum tariff.
Answer: TRUE
16) Home country consumers are typically active in preventing their domestic companies from dumping products into foreign markets.
Answer: FALSE
17) The essential-industry argument holds that industries with potential export capabilities should be protected.
Answer: FALSE
18) Import trade controls, but not export trade controls, can be used as a weapon of foreign policy.
Answer: FALSE
19) The most common type of tariff is the export tariff.
Answer: FALSE
20) An effective tariff is the sum of the ad valorem tariff plus the specific duty.
Answer: FALSE
21) Agricultural subsidies by developed countries impede the competitiveness of agricultural exports by developing countries.
Answer: TRUE
22) When customs officials set a value on which to place an import tariff, they ordinarily use the declared invoice price unless they doubt its authenticity.
Answer: TRUE
23) A quota is a quantitative limit on the amount of a product that can be traded.
Answer: TRUE
24) The purpose of "Made in" labels on imported products is to enable countries to keep records of the origin of imports.
Answer: FALSE
25) 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.
Answer: TRUE
26) At present there is little reciprocal recognition of professional licensing among countries.
Answer: TRUE
27) Companies that have integrated their supply chains internationally tend to lobby their home governments for increased protectionist measures.
Answer: FALSE
28) When a company is seeking protection from imports, it can usually improve its chances of getting that protection if it allies with most of the companies in the industry.
Answer: TRUE
29) The international regulatory situation for trade is becoming more, rather than less, complex.
Answer: TRUE
30) Every time countries enter a new trading agreement, service trade tends to grow more rapidly than merchandise trade.
Answer: FALSE