Question 1

Which of the following does not characterize a difference between U.S.and EU antidumping laws?

Accepted Answer

A)  The duration of an antidumping duty has no time limit under U.S. law, but EU law imposes a five-year maximum duration. 
B)  Under U.S. law, the duty equals the dumping margin, whereas under EU law, it may vary based on the injury. 
C)  Under U.S. law, a duty is imposed retrospectively, while under EU law, it may be imposed prospectively. 
D)  All of the above. 
E)  None of the above. 
A)  The duration of an antidumping duty has no time limit under U.S. law, but EU law imposes a five-year maximum duration. 
B)  Under U.S. law, the duty equals the dumping margin, whereas under EU law, it may vary based on the injury. 
C)  Under U.S. law, a duty is imposed retrospectively, while under EU law, it may be imposed prospectively. 
D)  All of the above. 
E)  None of the above.

Question 2

Scenario
Reduced rate loans offered by U.S.banks to U.S.businesses willing to relocate their operations to economically depressed inner cities.

Accepted Answer

Legal.This is not a

Question 3

In response to the petition for relief filed by Harley-Davidson Motor Company:

Accepted Answer

A)  A ban on imported motorcycles above 700 cubic cent. was implemented. 
B)  The commission recommended that declining incremental duties on imported motorcycles be imposed for five years. 
C)  Honda agreed to stop the export of its larger motorcycles for five years. 
D)  The president threatened severe trade sanctions on Japan if they did not stop their dumping of motorcycles on the American market. 
A)  A ban on imported motorcycles above 700 cubic cent. was implemented. 
B)  The commission recommended that declining incremental duties on imported motorcycles be imposed for five years. 
C)  Honda agreed to stop the export of its larger motorcycles for five years. 
D)  The president threatened severe trade sanctions on Japan if they did not stop their dumping of motorcycles on the American market.

Question 4

Scenario
Tax credits extended by the government of India to Indian companies in order to assist in the reduction of greenhouse gases emitted during the manufacturing process.

Accepted Answer

Legal.This is a subs

Question 5

Consider the differential domestic and foreign political ramifications of the following U.S.trade laws:
 Section 201 escape clause,the antidumping statute,the countervailing duty statute,and Section 301 retaliation.

Accepted Answer

The differential domestic and foreign po

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

The GATT escape clause:

Accepted Answer

A)  Allows a country to take temporary corrective action to protect a domestic industry. 
B)  Allows members who no longer wish to be a part of the WTO to quit. 
C)  Allows a country to impose tariffs on countries that are engaging in dumping. 
D)  Allows a country to disaffirm any previous tariffs they have imposed on another GATT member. 
A)  Allows a country to take temporary corrective action to protect a domestic industry. 
B)  Allows members who no longer wish to be a part of the WTO to quit. 
C)  Allows a country to impose tariffs on countries that are engaging in dumping. 
D)  Allows a country to disaffirm any previous tariffs they have imposed on another GATT member.

Question 8

If domestic workers are damaged by foreign competition,they may be entitled to federal worker adjustment assistance.

Accepted Answer

A) True 
 B)False

Question 9

Managed trade is:

Accepted Answer

A)  A principle under which a government sets trade goals for an industry and then uses a system of government incentives and controls to guide trade toward those goals. 
B)  Illegal under U.S. law. 
C)  Used when arbitrators are called in to settle a trade dispute. 
D)  A set of laws passed by the U.S. Congress in 1994 to protect the U.S. semiconductor industry from Japanese imports. 
A)  A principle under which a government sets trade goals for an industry and then uses a system of government incentives and controls to guide trade toward those goals. 
B)  Illegal under U.S. law. 
C)  Used when arbitrators are called in to settle a trade dispute. 
D)  A set of laws passed by the U.S. Congress in 1994 to protect the U.S. semiconductor industry from Japanese imports.

Question 10

The U.S.law dealing with import relief is:

Accepted Answer

A)  Art. 8, Sec. 1, U.S. Constitution. 
B)  Sec. 333, U.S. Import Relief Act. 
C)  Sec. 201, Trade Act of 1974. 
D)  GATT, Art. XIX. 
A)  Art. 8, Sec. 1, U.S. Constitution. 
B)  Sec. 333, U.S. Import Relief Act. 
C)  Sec. 201, Trade Act of 1974. 
D)  GATT, Art. XIX.

Question 11

U.S.firms facing unreasonable or unfair trade barriers to the introduction of their products in foreign markets would find which of the following to be the most helpful:

Accepted Answer

A)  The U.S. escape clause. 
B)  An appeal to the U.S. Congress to take statutory action against the offending country. 
C)  Petitioning the U.S. Trade Representative to intervene. 
D)  Asking for a countervailing duty to be imposed. 
A)  The U.S. escape clause. 
B)  An appeal to the U.S. Congress to take statutory action against the offending country. 
C)  Petitioning the U.S. Trade Representative to intervene. 
D)  Asking for a countervailing duty to be imposed.

Question 12

A subsidy is some advantage or favor granted by a government to its firms upon the manufacture,production,or export of a product,and such actions are beneficial to the international economy.

Accepted Answer

A) True 
 B)False

Question 13

The U.S.countervailing duty statute requires that the International Trade Commission determine the fair market price of the imported product in the country of origin.

Accepted Answer

A) True 
 B)False

Question 14

Subsidies are regulated under the GATT Agreement.

Accepted Answer

A) True 
 B)False

Question 15

Quotas are not permitted under GATT or under U.S.law as a method of protecting domestic industries.

Accepted Answer

A) True 
 B)False

Question 16

The GATT escape clause allows member nations to take temporary measures to protect a domestic industry.

Accepted Answer

A) True 
 B)False

Question 17

Section 301 of the Trade Act of 1974 provides authority for the president to do what,if barriers to U.S.trade are not lifted?

Accepted Answer

A)  Petition Congress to intervene in the situation. 
B)  Threaten military action if the barriers are not lifted. 
C)  Use retaliation in the form of duties or quotas. 
D)  Pay the U.S. company a subsidy. 
A)  Petition Congress to intervene in the situation. 
B)  Threaten military action if the barriers are not lifted. 
C)  Use retaliation in the form of duties or quotas. 
D)  Pay the U.S. company a subsidy.

Question 18

Dumping does not occur when there is no market for the product in the home country.

Accepted Answer

A) True 
 B)False

Question 19

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.

Accepted Answer

A) True 
 B)False

Question 20

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.

Accepted Answer

The answer of Scenario
Tax credits extended by the Japanese government...

Exam 11: Regulating Import Competition and Unfair Trade

Which of the following does not characterize a difference between U.S.and EU antidumping laws?

Scenario Reduced rate loans offered by U.S.banks to U.S.businesses willing to relocate their operations to economically depressed inner cities.

In response to the petition for relief filed by Harley-Davidson Motor Company:

Scenario Tax credits extended by the government of India to Indian companies in order to assist in the reduction of greenhouse gases emitted during the manufacturing process.

Consider the differential domestic and foreign political ramifications of the following U.S.trade laws: Section 201 escape clause,the antidumping statute,the countervailing duty statute,and Section 301 retaliation.

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

The GATT escape clause:

If domestic workers are damaged by foreign competition,they may be entitled to federal worker adjustment assistance.

Managed trade is:

The U.S.law dealing with import relief is:

U.S.firms facing unreasonable or unfair trade barriers to the introduction of their products in foreign markets would find which of the following to be the most helpful:

A subsidy is some advantage or favor granted by a government to its firms upon the manufacture,production,or export of a product,and such actions are beneficial to the international economy.

The U.S.countervailing duty statute requires that the International Trade Commission determine the fair market price of the imported product in the country of origin.

Subsidies are regulated under the GATT Agreement.

Quotas are not permitted under GATT or under U.S.law as a method of protecting domestic industries.

The GATT escape clause allows member nations to take temporary measures to protect a domestic industry.

Section 301 of the Trade Act of 1974 provides authority for the president to do what,if barriers to U.S.trade are not lifted?

Dumping does not occur when there is no market for the product in the home country.

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.

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.

Introduction to International Business

International Law and the Worlds Legal Systems

Resolving International Commercial Disputes

Sales Contracts and Excuses for Nonperformance

The Documentary Sale and Terms of Trade

The Carriage of Goods and the Liability of Air and Sea Carriers

Bank Collections, Trade Finance, and Letters of Credit

National Lawmaking Powers and the Regulation of Ustrade

Gatt Law and the World Trade Organization: Basic Principles

Laws Governing Access to Foreign Markets

Imports, Customs, and Tariff Law

The Regulation of Exports

North American Free Trade Law

The European Union and Other Regional Trade Areas

International Marketing Law: Sales Representatives, Advertising, and Ethical Issues

Licensing Agreements and the Protection of Intellectual Property Rights

Takings and National Controls on Foreign Direct Investment

Labor and Employment Discrimination Law

Environmental Law

Regulating the Competitive Environment

Filters