Question 1

The Smoot-Hawley Tariff Act of 1930 has often been associated with:

Accepted Answer

The Smoot-Hawley Tariff Act of 1930 raised tariffs on over 20,000 imported goods in an attempt to protect American businesses and farmers during the Great Depression. However, this actually led to a decrease in international trade as other countries retaliated with their own tariffs and the cost of imports for American businesses increased, leading to a decrease in exports as well.

Question 2

The Uruguay Round provided that GATT would be replaced by the:

Accepted Answer

The Uruguay Round negotiations led to the establishment of the World Trade Organization (WTO) in 1995, which replaced GATT (General Agreement on Tariffs and Trade) as the governing body for international trade. Therefore, the correct answer is C. The other options, Bureau of Economic Analysis, The World Bank, and the US Export/Import Bank, are all separate entities that do not replace GATT.

Question 3

Upon which of these policies was GATT founded?

Accepted Answer

GATT (General Agreement on Tariffs and Trade) was founded on principles such as unconditional most-favored-nation treatment, reduction of tariffs through multilateral negotiations, and the prohibition or limitation of trade restrictions, including nontariff barriers. None of the options provided accurately describe the foundational policies of GATT.

Question 4

Over the last four decades:

Accepted Answer

According to trade experts, over the last four decades, the use of non-tariff barriers (NTBs) has increased, while tariffs have decreased in importance and use. This shift is attributed to the fact that tariffs are more visible and easier to negotiate than non-tariff measures, which can be more complex and harder to quantify. Additionally, the global trading system has been subject to many multilateral trade agreements that have reduced the use of traditional tariffs but given rise to new forms of NTBs.

Question 5

________________ replaced the product-by-product approach of the Trade agreements Act with across-the-board reduction power.

Accepted Answer

The Trade Expansion Act of 1962 and the Kennedy Round were significant because they moved away from negotiating trade agreements on a product-by-product basis, instead granting the authority for across-the-board tariff reductions. This approach allowed for more comprehensive and efficient trade negotiations.

Question 6

Suppose the president negotiates lower tariffs on imported pianos.The domestic piano industry can appeal that decision under the:

Accepted Answer

The answer of Suppose the president negotiates lower tariffs on...

Question 7

Which of the following is not one of the problems being addressed in the latest round of trade negotiations,the Doha Round?

Accepted Answer

The issue of the world dividing itself into major trading blocs is not a problem being addressed in the Doha Round. The other three options - high agricultural tariffs and subsidies, establishing environmental and labor standards, and trade disputes between the US and EU regarding tax breaks - are all issues being discussed in the Doha Round.

Question 8

The Uruguay Round provided that the volume of _______________ is to be reduced by 21 percent over a six-year period?

Accepted Answer

The Uruguay Round of the GATT (General Agreement on Tariffs and Trade) negotiations established that the volume of agricultural export subsidies is to be reduced by 21 percent over a six-year period. The reduction was meant to address the distortions caused by these subsidies in international trade and increase market access for developing countries.

Question 9

The Uruguay Round provides for tougher and quicker action to resolve disputes resulting from the use of __________,but does not ban their use.

Accepted Answer

The statement specifically mentions that the Uruguay Round provides for tougher and quicker action to resolve disputes resulting from the use of anti-dumping laws, indicating that these laws may still be used. The statement does not mention a ban on tariffs, quotas, or subsidies.

Question 10

Countervailing duties are intended to neutralize any unfair advantage that foreign exporters might gain over domestic producers because of foreign:

Accepted Answer

Countervailing duties are specifically designed to counteract the effects of foreign subsidies that may give foreign exporters an unfair advantage over domestic producers. Tariffs are a form of duty themselves and are not countered by countervailing duties. Quotas and voluntary export agreements are not forms of subsidies, so countervailing duties are not applicable to those situations.

Question 11

A specified quantitative limit on a good that will be allowed to enter the country over a given period of time is referred to as:

Accepted Answer

An import quota refers to a specified quantitative limit on a good that will be allowed to enter the country over a given period of time. Domestic subsidy, export subsidy, and import tariff are all measures that can be used to restrict imports, but they do not specifically refer to a quantitative limit.

Question 12

In the Uruguay Round,_______________ were reduced from an average of 4.7 percent to 3 percent.

Accepted Answer

The Uruguay Round reduced tariffs on industrial products from an average of 4.7 percent to 3 percent, as part of efforts to liberalize international trade and increase market access for goods traded across borders. Agricultural export subsidies were also targeted for reduction and eventual elimination, but this was a separate issue from the reduction of industrial tariffs. Quotas on manufactured goods were not targeted specifically in the Uruguay Round, and tariffs on intellectual property were a newer issue that was not as prominent in the negotiations at that time.

Question 13

In which act was the most-favored-nations principle further developed?

Accepted Answer

The Trade Agreements Act of 1934 further developed the most-favored-nations principle by giving the President the authority to negotiate reciprocal trade agreements that could grant tariffs or other favorable treatment to certain countries, with the condition that such treatment would also be extended to all other signatories of the agreement. This principle stated that a country's favorable treatment to one nation should be extended to all other nations with which it has signed a most-favored-nations agreement.

Question 14

The World Trade Organization was established by the _______________ of multilateral trade negotiations.

Accepted Answer

The World Trade Organization was established by the Uruguay Round of multilateral trade negotiations, which began in 1986 and concluded in 1994. The other rounds named in the options were also important in the development of global trade, but they did not establish the World Trade Organization.

Question 15

The World Trade Organization provides for all of the following except:

Accepted Answer

The World Trade Organization provides for the use of the most-favored-nation clause, assistance in the settlement of trade disputes, and multilateral tariff reductions. However, it does not provide for bilateral tariff reductions. Bilateral tariff reductions refer to agreements between two countries specifically, while the WTO focuses on multilateral agreements among all member countries.

Question 16

Which of the following called on the US Trade Representative to set a tight schedule for negotiating reductions in trade barriers with countries that restricted U.S.exports?

Accepted Answer

The Omnibus Trade and Competitiveness Act of 1988 called on the US Trade Representative to set a tight schedule for negotiating reductions in trade barriers with countries that restricted U.S. exports.

Question 17

The Export-Import Bank of the US assists firms in selling overseas by providing direct loans to foreign purchasers of US goods.This serves as a(n)__________________ to US firms.

Accepted Answer

The Export-Import Bank of the US provides direct loans to foreign purchasers of US goods, which helps US firms sell overseas. This is a form of export subsidy, as it directly supports and promotes US exports.

Question 18

At which round of international trade negotiations were there numerous disagreements between the US and the EU on reducing agricultural subsidies?

Accepted Answer

The answer of At which round of international trade negotiations...

Question 19

Under the original provisions of the Trade Agreements Act,the president of the United States was authorized to negotiate tariff reductions up to:

Accepted Answer

Under the original provisions of the Trade Agreements Act, the president of the United States was authorized to negotiate tariff reductions up to 50 percent.

Question 20

If Japan is accused of dumping umbrellas into the US market,it is believed that Japan is:

Accepted Answer

Dumping refers to selling products at a price below their production cost. Therefore, if Japan is accused of dumping umbrellas into the US market, it means that they are selling umbrellas at a price below their production cost.

Quiz 6: Nontariff Trade Barriers and the Political Economy of Protectionism