Exam 5: Nontariff Trade Barriers

Excessive sea transport and freight regulations are examples of nontariff trade barriers.

Figure 5.3. Sweden's Apple Market -Consider Figure 5.3.In the absence of trade, Sweden's equilibrium price and quantity of apples would be

A global import quota permits a specified number of goods to be imported each year, but does NOT specify where the product is shipped from and who is permitted to import.

Figure 5.3. Sweden's Apple Market -Consider Figure 5.3.The quota's revenue effect equals

Figure 5.3. Sweden's Apple Market -Consider Figure 5.3.If S_Sweden+Quota represents the supply schedule after a quota is levied, Sweden's imports will equal

Figure 5.1 illustrates the steel market for Mexico, assumed to be a "small" country that is unable to affect the world price. Suppose the world price of steel is given and constant at $200 per ton. Now suppose the Mexican steel industry is able to obtain trade protection. Figure 5.1. Alternative Nontariff Trade Barriers Levied by a "Small" Country -Consider Figure 5.1.Suppose the rest of the world voluntarily agrees to reduce steel shipments to Mexico vis-a-vis an export quota equal to 2 tons.Assuming Mexican importers behave as monopoly buyers while foreign exporters behave as competitive sellers, the overall welfare loss of the quota to Mexico is

Nontariff trade barriers include all of the following EXCEPT

In recent years, the average antidumping duty imposed by the United States has been about

The sugar import quotas of the U.S.government have tended to increase the market price of sugar, thus reducing the costs to the government of maintaining sugar price supports for domestic growers.

In certain industries, Japanese employers do not lay off workers.Therefore, they sometimes have excess supplies of goods that they cannot sell on the home market without lowering prices.To hold down losses, they sell goods in overseas markets at prices well beneath those in Japan.This practice is best referred to as

Suppose the government grants a subsidy to domestic producers of an import-competing good.The subsidy tends to result in deadweight losses for the domestic economy in the form of the

A subsidy granted to import-competing producers results in a welfare loss to the economy by an amount equal to the protective effect plus the consumption effect.

A home appliance manufacturer observes the following and determines that his competitors are pricing their imported goods below-cost sale.Which point would have helped him come to this conclusion?

During the 1980s, U.S.steel-using companies (Caterpillar) actively supported the U.S.government's negotiation of voluntary export agreements with foreign steel-exporting countries.

Figure 5.2. International Dumping -Consider Figure 5.2.With international dumping, ABC Inc.sells ____ calculators to Canadian buyers at a price of $____ and ____ calculators to French buyers at a price of $____.

When voluntary export limits are imposed on the world's chief exporter

The imposition of a domestic content requirement by the United States would cause consumer surplus for Americans to

Under U.S.law, a(n) ___________duty is levied when the U.S.Department of Commerce determines a class or kind of foreign merchandise is being sold at less than fair value (LTFV).

In 1933 the U.S.government enacted the Buy American Act, which requires federal agencies to purchase materials and products from American suppliers if their prices are NOT unreasonably higher than those of foreign competitors.

The result of antidumping duties is to impose a floor on foreign prices.