Exam 19: International Trade

Exhibit 19-9 If the country in Exhibit 19-9 is initially trading without restrictions at a world price of $2.00 and an import quota of 50 units per month is enacted, the welfare loss resulting from higher domestic production costs is represented by area

If an established domestic industry is in jeopardy of being displaced by lower-priced imports, there could be a rationale for

The international treaty established to negotiate lower trade restrictions is known as the

Exhibit 19-9 If the country in Exhibit 19-9 is initially trading without restrictions at a world price of $2.00 and an import quota of 50 units per month is enacted, the gain to those awarded the right to import the 50 units and sell it at the new domestic price is represented by area

One way to reduce pressure for Mexicans to cross the U.S.border illegally is to create job opportunities in Mexico.

The basis of the benefits of specialization is

A tariff is

Which pair of groups benefits from an import quota when quota rights are given away without charge?

Exhibit 19-6 In Exhibit 19-6, if the world price of a baseball is $3 and a tariff of $1 per baseball is imposed in the United States, which area represents the United States' net loss as a result of the tariff?

The World Trade Organization (WTO)

The establishment of GATT resulted in

A major U.S.motive for negotiating a free-trade agreement with Mexico was

In determining comparative advantage, cost is measured in terms of

Exhibit 19-5 If the country illustrated in Exhibit 19-5 is initially trading without restrictions at a world price of $1.00, the government revenue from a tariff of $0.50 per unit is represented by area

When it comes to basic commodities, the United States is a net exporter of oil and metals and a net importer of farm crops.

In autarky,

Mutually beneficial trade will occur between two countries for all of the following reasons except one.Which is the exception?

A lump-sum tax per unit on imports is known as

U.S.exports

Exhibit 19-1 Exhibit 19-1 shows the production possibilities frontiers for the countries of Lambda and Beta for fish and coconuts.What can you say about comparative advantage from the information in Exhibit 31-9?