Question 1

Unlike the Tokyo Round of multilateral trade negotiations,the Uruguay Round addressed the issues of intellectual property protection,trade barriers in services,and agricultural subsidies.

Accepted Answer

The statement is true. The Tokyo Round of multilateral trade negotiations (1973-1979) mainly focused on reducing tariffs on manufactured goods. The Uruguay Round (1986-1994) addressed a wider range of issues, including intellectual property protection, trade barriers in services, and agricultural subsidies.

Question 2

Among the codes of conduct addressed at the Tokyo Round of multilateral trade negotiations were customs valuation,product standards,subsidies and countervailing duties,government procurement policies,and import licensing procedures.

Accepted Answer

This statement accurately describes the topics addressed during the Tokyo Round of multilateral trade negotiations.

Question 3

U.S.antidumping duties are intended to neutralize exports to the United States at prices below average total cost or exports to the United States at prices lower than those charged in the exporter's home market.

Accepted Answer

U.S. antidumping duties are imposed on imports that are found to be sold in the United States at prices below the exporter's home market price or below the cost of production. The purpose of these duties is to protect domestic industries from unfair competition from foreign companies that sell goods at unfairly low prices.

Question 4

Under the government procurement policy of the World Trade Organization,federal-state-local governments are prevented from discriminating in favor of the products of domestic suppliers on contracts valued at $1 million and more.

Accepted Answer

The World Trade Organization's Agreement on Government Procurement (GPA) aims to ensure open, fair, and transparent conditions of competition in government procurement. However, it applies only to the countries that have agreed to be parties to the GPA and does not universally prevent all federal, state, or local governments from favoring domestic products, nor does it specify a $1 million threshold for such conditions.

Question 5

Under the trade adjustment assistance program,a domestic firm or worker can file for governmental assistance only if it demonstrates that it suffered economic hardship due to imports of foreign-subsidized goods.

Accepted Answer

The answer of Under the trade adjustment assistance program,a domestic...

Question 6

Industrial policy attempts to foster the development of industries that offer long-run comparative disadvantages and which are insulated from other sectors of the economy.

Accepted Answer

Industrial policy is actually aimed at fostering the development of industries that offer long-run comparative advantages and which can complement and integrate with other sectors of the economy.

Question 7

Copyrights,trademarks,and patents are used to protect the intellectual property of a nation from foreign imitators.

Accepted Answer

Copyrights, trademarks, and patents are legal tools used to protect the intellectual property of a nation from foreign imitators.

Question 8

The only members of the General Agreement on Tariffs and Trade and its successor,the World Trade Organization,are developing countries rather than developed countries.

Accepted Answer

This statement is completely opposite to the reality. The General Agreement on Tariffs and Trade and its successor, the World Trade Organization, have members from both developing and developed countries.

Question 9

Although the Uruguay Round of multilateral trade negotiations succeeded in reducing nontariff trade barriers,it could not achieve reductions in tariff trade barriers.

Accepted Answer

The Uruguay Round of multilateral trade negotiations did succeed in reducing both nontariff trade barriers and tariff trade barriers.

Question 10

Intellectual property refers to holdings of rare books and pieces of art that are traded on the world market.

Accepted Answer

Intellectual property refers to creations of the mind such as inventions, literary and artistic works, symbols and designs used in commerce, and other types of proprietary information that are protected by law. It does not refer to rare books and pieces of art traded on the world market.

Question 11

According to U.S.trade law,the escape clause provides relief to U.S.firms due to unfair foreign competition.

Accepted Answer

The answer of According to U.S.trade law,the escape clause provides...

Question 12

According to the fast-track provision of U.S.trade law,once the President has completed trade negotiations,their outcome is subject to a vote (without amendment)in Congress within 90 legislative days of submission.

Accepted Answer

This is true according to the fast-track provision of U.S. trade law, also known as the Trade Promotion Authority. Once the President has completed trade negotiations, the outcome is subject to a vote in Congress within 90 legislative days of submission, without the possibility of amendment.

Question 13

Under the provisions of the World Trade Organization,Canada would have the right to impose countervailing duties on imports of South Korean steel when the South Korean government provides export subsidies to its steelmakers.

Accepted Answer

This statement is true according to the provisions of the World Trade Organization's Agreement on Subsidies and Countervailing Measures. Under this agreement, member countries have the right to impose countervailing duties on imports from countries that provide export subsidies to their industries. Canada can impose countervailing duties on imports of South Korean steel if it determines that South Korea's steel industry is receiving export subsidies.

Question 14

The main focus of the Uruguay Round of multilateral trade negotiations was on tariff barriers rather than nontariff trade barriers.

Accepted Answer

The Uruguay Round of multilateral trade negotiations, which took place from 1986 to 1994, focused significantly on both tariff and non-tariff barriers, aiming to extend the trading system into several new areas, including services and intellectual property, and to reform trade in the sensitive sectors of agriculture and textiles.

Question 15

An antidumping duty levied on imports of foreign-produced steel leads to an increase in consumer surplus in the home country.

Accepted Answer

An antidumping duty leads to an increase in the price of the imported steel, which may reduce consumer surplus in the home country. The increase in consumer surplus for domestic producers due to reduced competition may not offset the decrease in consumer surplus for the buyers of the steel.

Question 16

According to the escape clause,temporary trade restrictions may be imposed in industries where domestic producers are substantially being harmed by surging imports.

Accepted Answer

The escape clause allows for temporary trade restrictions to be imposed in industries where domestic producers are substantially being harmed by surging imports.

Question 17

The U.S.trade-remedy laws attempt to redress hardships for U.S.firms resulting from actions and policies of foreign firms and governments.

Accepted Answer

The U.S. trade-remedy laws, including antidumping and countervailing duty investigations, attempt to address unfair trade practices and resulting harm to U.S. industries from foreign competitors and their governments.

Question 18

The fast-track provision of U.S.trade law has the affect of speeding up the timetable during which the President negotiates trade agreements with foreign governments.

Accepted Answer

Fast-track provision, also known as trade promotion authority, does indeed speed up the negotiation process for trade agreements by limiting Congress's ability to make changes to the agreement and requiring an up-or-down vote within a set timeframe.

Question 19

The purpose of "countervailing duties," as levied by the domestic government,is to neutralize import tariffs imposed by foreign governments.

Accepted Answer

Countervailing duties are imposed to offset subsidies provided by foreign governments to their exporters, not to neutralize import tariffs.

Question 20

Economic theory suggests that if France is a net importer of automobiles,whose production is subsidized by the Korean government,the overall welfare of France decreases because of the Korean subsidy.

Accepted Answer

Economic theory suggests that if Korea subsidizes its automobile production, it lowers the production cost, which can lead to lower prices for French consumers. This can increase consumer surplus in France, potentially increasing overall welfare despite France being a net importer. The subsidy effectively transfers some of the Korean taxpayers' money to French consumers.

Quiz 6: Trade Regulations and Industrial Policies