Exam 6: Trade Regulations and Industrial Policies

According to the fast-track provision of U.S.trade law, once the president has completed trade negotiations, their outcome is subject to a vote (without amendment) in Congress within 90 legislative days of submission.

An antidumping duty levied on imports of foreign-produced steel leads to an increase in consumer surplus in the home country.

The World Trade Organization primarily involves bilateral trade negotiations between two countries, say, the United States and China.

During the 1780s-1790s, the largest source of revenue for the U.S.government came from

______________ generally result(s) in greater economic pressure on the target nation.

The primary objective of the World Trade Organization is to

Compared with other displaced workers, ______________ workers tend to face ______________ adjustment costs as they must endure longer ______________ spells and larger wage losses once reemployed.

Which is one type of trade liberalization favored by the World Trade Organization?

Assume Boeing Inc. (of the United States) and Airbus Industries (of Europe) rival for monopoly profits in the Canadian aircraft market. Suppose the two firms face identical cost and demand conditions, as seen in Figure 6.1. Figure 6.1. Strategic Trade Policy: Boeing versus Airbus -Referring to Figure 6.1, the Airbus subsidy leads to a (an) increase/decrease in Canadian consumer surplus of $______________, as compared to the consumer surplus that existed in the absence of a subsidy.

______________ attempt to produce a fair and free-trading environment in which there exists a level playing field.

In 1990, the United States and its allies imposed trade embargoes on exports/imports to/from Iraq in response to its invasion of Kuwait.The embargoes would induce smaller losses in Iraq's consumer surplus the

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

Unlike the Tokyo Round of multilateral trade negotiations, the Uruguay Round addressed the issues of intellectual property protection, trade barriers in services, and agricultural subsidies.

What is the basis for trade adjustment assistance?

Under the provisions of the World Trade Organization, Canada would have the right to impose countervailing duties on imports of South Korean steel when the South Korean government provides export subsidies to its steelmakers.

The ______________ provides a forum for multinational trade negotiations, intended on reducing barriers to trade.

Delta Airlines and Southwest Airlines have been critics of the U.S.Export-Import Bank.They maintain that, because they are American companies, they cannot benefit from the Bank's export subsidies.However, their foreign rivals do benefit from the Bank's export subsidies.

Which major economy spends the most in helping retrain workers and getting them reemployed?

For the United States in the early 1800s

The main focus of the Uruguay Round of multilateral trade negotiations was on tariff barriers rather than nontariff trade barriers.