A common hybrid of a quota and a tariff is known as a(n): c.

tariff rate quota

According to ____, some specific fraction of a good must be produced domestically. c. local content
requirements

_____ is variously defined as selling goods in a foreign market at below their costs of production or as
selling goods in a foreign market at below their "fair" market value. b. Dumping

By lowering production costs, _____ help domestic producers compete against foreign imports. d.
subsidies

Import tariffs: a. reduce the overall efficiency of the world economy .

The TRIPS regulations established at the 1995 Uruguay Round: b. established regulations on patents and
copyrights.

In 1997, two South Korean manufacturers of semiconductors, LG Semicon and Hyundai Electronics, were
accused of selling dynamic random access memory chips (DRAMs) in the U.S. market at below their
costs of production. It was alleged that the firms were trying to unload their excess production in the
United States. This is an example of: d. dumping

Identify the INCORRECT statement about trade barriers. d. They may put a firm at a competitive
advantage to indigenous competitors.

The U.S. government has used the threat of punitive trade sanctions to try to get the Chinese
government to enforce its intellectual property laws. This is an example of government intervention
based on: b. retaliation

Administrative trade policies are: b. bureaucratic rules designed to make it difficult for imports to enter
a country.

The Netherlands exported tulip bulbs to almost every country in the world except Japan. This was
because in Japan, customs inspectors insisted on checking every tulip bulb by cutting it vertically down
the middle. This is an example of which of the following trade barriers? a. Administrative trade policies

Specific tariffs are: a. levied as a fixed charge for each unit of a good imported

According to the _____ argument, governments should temporarily support new industries until they
have grown strong enough to meet international competition. b. infant industry

_____ is a direct restriction on the quantity of some good that may be imported into a country. b.
Import quota

What term refers to a situation in which a government does not attempt to restrict what its citizens can
buy or sell to another country? a. Free trade

_____ is a quota on trade imposed by the exporting country, typically at the request of the importing
country's government. d. Voluntary export restraint

Which of the following is NOT one of the main instruments of trade policy? b. Credit portfolios
Which of the following is a consequence of subsidies? d. Subsidies protect inefficient domestic
producers.

Local content regulations: b. protect domestic producers by limiting foreign competition.

The Japanese government was pressurized by the U.S. government to place limits on the number of
vehicles exported to the United States by Japanese automobile producers in 1981. This is an example of:

a. voluntary export restraint