Question 1

France's requirement that during prime time at least 40 percent of the songs played on 1700 AM and FM stations must be written or sung by French or Francophone artists is an example of which type of nontariff barrier?
A) product and testing standards
B) restricted access to distribution networks
C) numerical export controls
D) public-sector procurement policies
E) local-purchase requirements

Accepted Answer

This requirement is a local-purchase requirement because it mandates a certain percentage of content (in this case, songs) to be sourced from local or regional (French or Francophone) artists.

Question 2

________ is/are common in key industries like broadcasting, utilities, air transportation, defense contracting, and financial services.
A) Restricted access to distribution networks
B) Investment controls
C) Public-sector procurement policies
D) Quotas

Accepted Answer

The answer of ________ is/are common in key industries like...

Question 3

A voluntary export control is most likely used to ________.
A) punish political enemies
B) appeal to domestic politicians
C) avoid trade conflicts with friendly trade partners
D) comply with strict product and testing standards

Accepted Answer

Voluntary export controls are often implemented to avoid trade conflicts with friendly trade partners by limiting the quantity of goods exported to those countries, thus helping to balance trade and maintain good diplomatic relations.

Question 4

Which of the following is an example of a nontariff barrier that restricts access to distribution networks?
A) Malaysia's requirement that during prime time at least 40 percent of the songs on the radio be by local artists
B) Turkmenistan's requirement that all imports of consumer goods be approved by the State Standards Committee
C) China's policy that imported sugar be distributed only by state-owned enterprises
D) Canada's requirement that baby food be packaged in 4.5- and 7.5-ounce containers

Accepted Answer

China's policy that imported sugar be distributed only by state-owned enterprises is an example of a nontariff barrier that restricts access to distribution networks. This policy limits the ability of foreign companies to distribute their products, as they must go through state-owned enterprises.

Question 5

The federal government policy that international air travel purchased with U.S. government funds must occur on U.S. airlines is an example of which type of nontariff barrier?
A) restricted access to distribution networks
B) numerical export controls
C) public-sector procurement policies
D) local-purchase requirements

Accepted Answer

The policy is an example of public-sector procurement policies, which dictate that government purchases must prefer domestic suppliers or service providers, in this case, requiring the use of U.S. airlines for international travel funded by the U.S. government.

Question 6

________ make it more difficult for importers of nonessential goods to acquire foreign exchange.
A) Currency controls
B) Restricted access to distribution networks
C) Numerical export controls
D) Public-sector procurement policies

Accepted Answer

Currency controls limit the availability of foreign exchange, and make it more difficult for importers to acquire the currency needed to purchase goods from foreign suppliers. This can include restrictions on the amount of currency individuals or companies are allowed to purchase or use, as well as requirements to obtain approval from government agencies before importing certain goods. Restricted access to distribution networks, numerical export controls, and public-sector procurement policies are all unrelated to limiting access to foreign exchange.

Question 7

Most tariffs imposed by developed countries are ad valorem.

Accepted Answer

Ad valorem tariffs, which are based on a percentage of the value of the imported goods, are the most common type of tariffs imposed by developed countries, as they are relatively easy to administer and automatically adjust to the price of the imported goods.

Question 8

A transit tariff is a tax placed on a good that is traded internationally, and are levied on goods as they leave the country or as they pass through one country bound for another.

Accepted Answer

A transit tariff is indeed a type of tax or duty imposed on goods that are being transported through a country's territory, from one country to another. It is not levied on goods merely for entering or leaving a country but specifically for passing through one country to reach another destination.

Question 9

Which of the following is an example of a regulatory control nontariff barrier?
A) Malaysia's policy that during prime time at least 40 percent of the songs on the radio be by local artists
B) Egypt's 15 percent bidding preference on public contracts
C) China's policy that imported sugar be distributed only by state-owned enterprises
D) Canada's requirement that baby food be packaged in 4.5- and 7.5-ounce containers

Accepted Answer

The answer of Which of the following is an example...

Question 10

________ is a term used to denote 17 different minerals that are critical for the production of high-tech products.
A) Tech gems
B) Dirty tech
C) Rare earths
D) Neo-elements

Accepted Answer

Rare earths refer to a group of 17 elements that are crucial for manufacturing various high-tech devices, including smartphones, electric vehicles, and military equipment. These elements have unique magnetic, luminescent, and electrochemical properties that make them essential for modern technology.

Question 11

Which of the following is not an example of regulatory controls as a form of nontariff barrier?
A) Country A conducts inspections of all imported luggage and baggage.
B) Country B requires foreign firms to obtain licenses before constructing plants.
C) Country C requires domestic producers of cosmetics to obtain government product registration.
D) Country D offers tourists a separate exchange rate than what is offered to importers.

Accepted Answer

The answer of Which of the following is not an...

Question 12

Public-sector procurement policies are common in Country X. Which of the following is the most likely characteristic of Country X?
A) extensive state ownership of industry
B) highly educated labor force
C) numerous small firms
D) minimal tariffs

Accepted Answer

Public-sector procurement policies are often associated with extensive state ownership of industry, as the government plays a significant role in the economy, including in the purchasing and procurement processes.

Question 13

An example of a public-sector procurement policy non tariff barrier is the ________.
A) ATM restrictions in Thailand
B) "Buy American" policy in the United States
C) encryption technology rules in Russia
D) foreign exchange requirements in Ethiopia

Accepted Answer

The "Buy American" policy in the United States is an example of a public-sector procurement policy non-tariff barrier. This policy requires that the government purchase goods and services from American companies whenever possible. This can make it more difficult for foreign companies to compete for government contracts.

Question 14

According to public choice analysis, the general public is more willing to work towards defeating unfavorable consumer laws than special-interest groups are willing to work towards the passage of trade laws.

Accepted Answer

Public choice analysis suggests that special-interest groups are more motivated and organized in lobbying for laws that benefit them, such as trade laws, than the general public is in opposing consumer laws that may be unfavorable. This is because the benefits to special-interest groups are concentrated and significant, while the costs to the general public are dispersed and less noticeable.

Question 15

Country X imposes a low tariff rate for the first 5,000 pounds of rice it imports from Japan and a high tariff rate on all imported rice above this threshold. Country X most likely uses a ________.
A) free trade zone
B) tariff rate quota
C) foreign currency control
D) voluntary export restraint

Accepted Answer

A tariff rate quota is a trade policy tool that allows a certain quantity of goods to be imported at a lower tariff rate, with higher tariffs applied to quantities exceeding this limit. In this scenario, the first 5,000 pounds of rice imported from Japan are subject to a low tariff, while any amount above this threshold faces a higher tariff, fitting the description of a tariff rate quota.

Question 16

In many cases, tariffs are imposed for the purpose of ________.
A) increasing national government revenue
B) complying with trade regulations
C) increasing foreign trade activity
D) promoting consumer safety

Accepted Answer

Tariffs are primarily imposed by governments to increase national revenue by taxing imported goods, making them more expensive and less competitive against domestic products. This can also indirectly protect domestic industries and jobs.

Question 17

Country X charges a tariff of 6 cents per kilogram for imported citrus fruit, so Country X is using a specific tariff.

Accepted Answer

A specific tariff is a fixed fee charged by a country on a per unit (e.g., per kilogram, per ton, per liter) basis for an imported good, which in this case is the 6 cents per kilogram on imported citrus fruit.

Question 18

Tariffs and quotas are more difficult to eliminate than non-tariff barriers.

Accepted Answer

Tariffs and quotas are generally more straightforward to identify and eliminate through trade agreements or policy changes, whereas non-tariff barriers can be more complex, embedded in regulations, standards, or practices, making them harder to address and remove.

Question 19

Local purchase requirements, investment controls, and product and testing standards are all forms of ________.
A) numerical export controls
B) voluntary export restraints
C) nontariff barriers
D) embargoes

Accepted Answer

Local purchase requirements, investment controls, and product and testing standards are examples of nontariff barriers, which are regulatory, procedural, or administrative measures that countries use to control the amount of trade across their borders without resorting to the imposition of tariffs.

Question 20

Which of the following is an example of a product and testing standards nontariff barrier?
A) Malaysia's requirement that during prime time at least 40 percent of the songs on the radio be by local artists
B) Brazil's requirement that new pharmaceutical products undergo clinical testing in Brazil
C) China's policy that imported sugar be distributed only by state-owned enterprises
D) Canada's requirement that organic baby food be manufactured locally

Accepted Answer

Brazil's requirement that new pharmaceutical products undergo clinical testing in Brazil is an example of a product and testing standards nontariff barrier. This type of barrier involves regulations that require products to meet specific testing or certification standards before they can be sold in the market, which can limit the entry of foreign products.

Quiz 9: Formulation of National Trade Policies

France's requirement that during prime time at least 40 percent of the songs played on 1700 AM and FM stations must be written or sung by French or Francophone artists is an example of which type of nontariff barrier?

________ is/are common in key industries like broadcasting, utilities, air transportation, defense contracting, and financial services.

A voluntary export control is most likely used to ________.

Which of the following is an example of a nontariff barrier that restricts access to distribution networks?

The federal government policy that international air travel purchased with U.S. government funds must occur on U.S. airlines is an example of which type of nontariff barrier?

________ make it more difficult for importers of nonessential goods to acquire foreign exchange.

Most tariffs imposed by developed countries are ad valorem.

A transit tariff is a tax placed on a good that is traded internationally, and are levied on goods as they leave the country or as they pass through one country bound for another.

Which of the following is an example of a regulatory control nontariff barrier?

________ is a term used to denote 17 different minerals that are critical for the production of high-tech products.

Which of the following is not an example of regulatory controls as a form of nontariff barrier?

Public-sector procurement policies are common in Country X. Which of the following is the most likely characteristic of Country X?

An example of a public-sector procurement policy non tariff barrier is the ________.

According to public choice analysis, the general public is more willing to work towards defeating unfavorable consumer laws than special-interest groups are willing to work towards the passage of trade laws.

Country X imposes a low tariff rate for the first 5,000 pounds of rice it imports from Japan and a high tariff rate on all imported rice above this threshold. Country X most likely uses a ________.

In many cases, tariffs are imposed for the purpose of ________.

Country X charges a tariff of 6 cents per kilogram for imported citrus fruit, so Country X is using a specific tariff.

Tariffs and quotas are more difficult to eliminate than non-tariff barriers.

Local purchase requirements, investment controls, and product and testing standards are all forms of ________.

Which of the following is an example of a product and testing standards nontariff barrier?