Topic Government Policies Affecting Trade 44 What term refers to a situation in

Topic government policies affecting trade 44 what

This preview shows page 43 - 46 out of 76 pages.

Topic: Government Policies Affecting Trade
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44.What term refers to a situation in which a government does not attempt to restrict what its citizens can buy or sell to another country? A. TariffsB. Import quotasC.Free tradeD. SubsidiesFree trade refers to a situation in which a government does not attempt to restrict what its citizens can buy from or sell to another country.AACSB: Knowledge ApplicationAccessibility: Keyboard NavigationBlooms: RememberDifficulty: 1 EasyGradable: automaticLearning Objective: 07-01 Identify the policy instruments used by governments to influence international tradeflows.Topic: Trade Policy and Government Intervention in International Trade45.Which of the following is one of the main instruments of trade policy? Trade policy uses seven main instruments: tariffs, subsidies, import quotas, voluntary export restraints, local content requirements, administrative policies, and antidumping duties. Tariffs are the oldest and simplest instrument of trade policy.AACSB: Knowledge ApplicationAccessibility: Keyboard NavigationBlooms: AnalyzeDifficulty: 2 MediumGradable: automaticLearning Objective: 07-01 Identify the policy instruments used by governments to influence international tradeflows.Topic: Trade Policy and Government Intervention in International Trade
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46.Specific tariffs are: Specific tariffs are levied as a fixed charge for each unit of a good imported (for example, $3 per barrel of oil).AACSB: Knowledge ApplicationAccessibility: Keyboard NavigationBlooms: RememberDifficulty: 1 EasyGradable: automaticLearning Objective: 07-01 Identify the policy instruments used by governments to influence international tradeflows.Topic: Trade Policy and Government Intervention in International Trade47.Tariffs do not benefit _____. The important thing to understand about an import tariff is who suffers and who gains. The government gains, because the tariff increases government revenues. Domestic producers gain, because the tariff affords them some protection against foreign competitors by increasing the cost of imported foreign goods. Consumers lose because they must pay more for certain imports.AACSB: Knowledge ApplicationAccessibility: Keyboard NavigationBlooms: UnderstandDifficulty: 2 MediumGradable: automaticLearning Objective: 07-01 Identify the policy instruments used by governments to influence international tradeflows.
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