Exam 11: Regulating Import Competition and Unfair Trade

Under U.S. law, a petition for import relief may be filed with the International Trade Commission by any firm, trade association, union, or group of workers.

The United States International Trade Commission investigated the Harley-Davidson complaint. It found that imports of competitive motorcycles were damaging the domestic industry, however the argument for protection was baseless.

Global quotas are quantitative import restrictions on a particular product regardless of its country of origin.

There are two types of import protection regulations in the U.S.: I. Laws that provide relief to protect developing U.S. domestic companies. II. Laws that allow non-market economy nations a financial break.

Which of the following might be considered a sign of market disruption within domestic firms due to increased imports of foreign goods?

The USTR has requested your advice on whether the following are legal pursuant to the GATT. Please explain each of your answers. Scenario Tax credits extended by the Japanese government to Japanese computer chip manufacturers on the basis of the volume of their chip sales in the United States.

The International Trade Commission is the U.S. agency that investigates and after reviewing all the evidence makes the final determination whether or not import relief will be granted to a domestic firm.

Subsidies including domestic subsidies are regulated under the GATT Agreement.

Dumping is the unfair trade practice of selling products in one country for less than the price charged for comparable goods in the producer's home market.

Section 201 of the Trade Act of 1974 provides authority for the president to do what, if barriers to U.S. trade are not lifted?

Subsidies in non-market economy countries are difficult to determine because:

Dumping has become a fairly persistent problem in international trade and is often practiced by firms wishing to sell their excess production capacity at bargain prices to cover fixed costs.

When a petition for import relief is filed with the International Trade Commission, the ITC conducts an investigation and must consider all the following factors except :

The USTR has requested your advice on whether the following are legal pursuant to the GATT. Please explain each of your answers. Scenario An across-the-board reduction by the United States in the corporate tax rate.

In the Bulk Aspirin from China case, the ITA decided to treat the private exporters the same as the government-owned exporters.

The USTR has requested your advice on whether the following are legal pursuant to the GATT. Please explain each of your answers. Scenario Loan guarantees by the French government to French filmmakers who utilize French equipment in the making of their movies.

Identify and evaluate the importance of the several factors taken into account in an ITC proceeding to impose import restrictions.

Consider the relative merits of including debt expenses in the calculation of the fair market value of an imported product. Consider this both in terms of the business exporting the good and the business importing the good.

To obtain import relief under U.S. law, the domestic industry must prove that the foreign producer or government has undertaken an illegal or unfair action in its export policy.

Quotas are not permitted under GATT or under U.S. law as a method of protecting domestic industries, unless a trade compensation is provided as a form of compensation.