AEM230_MidTerm_Fall_2007____ANSWER_SHEET - AEM/ECON 230...

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Unformatted text preview: AEM/ECON 230 Fall, 2007 International Trade and Finance Mid-Term Examination October 25, 2007 Instructions: Total points = 100. Read each question carefully . Take your time. (40 points) In Questions #1-8 below, please circle the letter that identifies the best answer . Each question is worth 5 points. 1. Which of the following was the most notable accomplishment of the Uruguay Round of the General Agreement on Tariffs and Trade (GATT)? a. It was the first successfully completed round of multilateral GATT negotiations. b. It was the first round of multilateral GATT negotiations to adopt the principle of non-discrimination among member countries. c. It was the first round of multilateral GATT negotiations to achieve double-digit reductions in average tariff levels. . d. The creation of the World Trade Organization. e. None of the above. 2. If a country imposes an import tariff (compared to free trade, as discussed in class), which of the following will occur? a. Producers in the importing country decrease their supply. b. Consumers in the importing country experience a price decrease. c. Government in the importing country experiences lower revenues. d. Government in the exporting country experiences higher revenues. e. Consumers in the exporting country increase their demand. 3. In international trade, the term quota rent or economic rent refers to: a. What Cornell students pay monthly to live in their apartments. b. Name of a Broadway musical about a famous trade economist. c. Excess profits. d. What governments gain in actual revenues from imposing a quota. e. What governments lose in actual revenues from imposing a quota. 4. Consider an importing country A and two exporting countries, B and C. Voluntary export restraints are typically: a. Imposed by an importer (A) to reduce incoming exports from a trading partner (either B or C). b. Recommended by an exporter (B or C), but imposed by an importer (A), in order to reduce incoming exports. c. Recommended by an importer (A), but imposed by an exporter (B or C), in order to reduce its exports to A. d. Imposed by an importer (A) to offset the government costs associated with an export subsidy imposed abroad (say, by B or C)....
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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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AEM230_MidTerm_Fall_2007____ANSWER_SHEET - AEM/ECON 230...

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