AEM_ECON_2300_Midterm_2009___ANSWER_SHEET

AEM_ECON_2300_Midterm_2009___ANSWER_SHEET - AEM/ECON 2300...

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AEM/ECON 2300 Spring, 2009 International Trade and Finance Mid-Term Examination: ANSWER SHEET March 10, 2009 1 – 8 (3 points each). Please match the international trade concepts listed below (a – r ) to the appropriate definitions given in #1 - #8 by inserting the correct letter in the space for each question ( Note : only use each answer once). a. Maximum revenue tariff j. Dumping margin b. Optimal tariff k. Countervailing duty c. Tariffication l. Effective tariff d. Import tariff m. Tariff escalation e. Export subsidy n. Tariff convergence f. Heckscher-Ohlin Proposition o. Variable export restraint g. Factor price equalization p. Import quota h. Tariff binding q. Samuelson-Krugman Proposition i. Dumping r. Tariff-rate quota ____________________________________________________________________________ __ 1. ___ K_ ___ Trade policy imposed by an importer to counteract export subsidies. 2. ___ G_ ___ International trade result/theorem/proposition that best describes behavior of U.S. and Japanese manufacturing wages in the past 25 years. 3. ___ O ____ Quantitative restrictions on trade imposed by an exporter. 4. ___ J_ ___ Trade policy instrument used by an importer to counteract international price discrimination. 5. ___ B_ ___ Tariff used by a large country importer that jointly maximizes both tariff revenues and domestic welfare. 6. ___ C ____ Trade policy instrument used in Uruguay Round to convert non-tariff barriers to tariffs. 7, 8. _ E and M are best, but I and P are also acceptable for full credit _ _ Two trade policy instruments (typically of industrialized countries) that low-income developing countries most want to have reformed or eliminated in the current Doha Round of international trade policy negotiations under the WTO.
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Questions 9 – 14 (5 points each): Circle the correct response. 9. Which of the following types of preferential trading arrangements is not characterized by a “common external tariff” with respect to non-member countries? a. Free trade area b. Customs union c. Common market d. Economic union e. All of the above 10. Which of the following international trade principles or propositions best explains the economic reason why most U.S. labor unions fought against passage of the North American Free Trade Agreement?
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This note was uploaded on 04/28/2009 for the course AEM 2300 taught by Professor Lee,d.r. during the Fall '06 term at Cornell University (Engineering School).

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AEM_ECON_2300_Midterm_2009___ANSWER_SHEET - AEM/ECON 2300...

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