trade regulations and industrial policies MCQs – Page 2

Practise focused trade regulations and industrial policies questions with marked answers for exam preparation and subject revision.

trade regulations and industrial policies Mcqs
21. Concerning economic sanctions, export embargo induces greater losses in consumer surplus for the target country the?
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A. more elastic the target country demand schedule

B. more in elastic the target country supply scheduleB.

C. greater then available output from alternative suppliers

D. lesser it initial dependence on foreign produce goods.

22. The U.S has granted China permanent most favored nation treatment (normal trade relations) This means that the tariff schedules which apply to U.S imports from china ?
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A. have tariff rates that are identical to the rates that apply to other countries to which the U.S grants most-favored nation treatment

B. have tariff rates equal to zero suggesting a free trade policy for the United States

C. have lower tariff rates than the rates that apply to any other country sending goods to the United States

D. have lower tariff rates than the rates that apply to other countries to which the U.S grants most favored nation treatment

23. Those who argue in favor of import protection generally give the impression that such restricted trade will?
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A. provide benefits to some particular industry

B. decrease the level of national security

C. provide benefits to the entire nation

D. not yield welfare losses for the nation

24. The institutional framework developed in 1947 to promote trade liberalization is known sa?
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A. the WTO

B. the IMF

C. the World Bank

D. the GATT
25. The theory of suggests that government can assist domestic companies in capturing economic profits from foreign competitors ?
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A. Strategic trade policy

B. export promotion policy

C. international dumping

D. countervailing duties

26. In 1980 the U.S imposed export quotas on grain sold to the Soviet Union in response to its armed invasion of Afghanistan if other nations do not increase grain exports to the soviets all the following would likely occur except?
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A. Export revenues would decrease for U.S producers

B. Consumer surplus would decrease for the soviets

C. Grain prices would rise in the Soviet union

D. Grains prices would rise in the united States
27. The strongest political pressure for a trade policy that results in higher protectionism comes from?
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A. domestic workers lobbying for export restrictions

B. domestic consumers lobbying for export restrictions

C. domestic workers lobbying for import restriction

D. domestic consumers lobbying for import restrictions
28. Economic sanctions?
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A. are prohibited by the World Trade Organization

B. affect international trade but not international financial flows

C. involve restrictions on imports, but not exports

D. involve restrictions in imports exports and or financial flows