Non-Tariff Trade Barriers

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Correct options are highlighted when revealed.

1.Which U.S. company would be most affected by Brazil selling steel at below-market prices in the American market?

General Motors, a car manufacturing companyTennessee Mining Co., a company that extracts iron oreCaterpillar Corp, a manufacturer of heavy machinerySneva Construction Co., a firm specializing in high-rise buildings

2.Which type of quota limits the quantity of goods that can be imported annually without restricting the source country or the authorized importers?

3.Based on the cost-based definition, dumping happens when a company exports a product at a price lower than which of the following?

the average total costthe average variable costthe average fixed costthe marginal cost

4.Which type of dumping is associated with the highest possible net welfare loss for the importing country?

Predatory dumpingOccasional dumpingContinuous dumpingEnd-of-year dumping

5.Which policy restricts outsourcing by mandating that a certain portion of a product's value be manufactured within the country to qualify for sale in the domestic market?

government subsidy for local industriesmutual export limitation agreementlocal content mandatequota with variable tariff ratesimport licensing requirement

6.What is the impact of a production subsidy provided to a producer competing with imported goods?

It does not need government tax revenue for funding.It causes an identical deadweight loss in welfare as an import tariff or quota.It results solely in deadweight loss due to consumption changes.It leads exclusively to deadweight loss arising from protectionist effects.

7.Which of the following scenarios can be associated with international dumping?

Offering products to foreign buyers at prices lower than those for local customersExporting goods at prices beneath the manufacturing costImposition of antidumping tariffs on the imported goods sold below fair valueAll of the above

9.What term describes the earnings gained by the party holding the authorization to import goods limited by a quota?

10.Like import tariffs, what is the typical effect of import quotas on the market?

Elevated prices and a decline in import quantitiesGrowth in government incomeAn increase in consumer benefitsA reduction in the gains of producers