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86) A key goal of the 1986 Uruguay Round was to
A) extend GATT to cover trade in commodities.
B) extend GATT rules to cover trade in services.
C) increase agricultural subsidies.
D) loosen the GATT's monitoring and enforcement mechanisms.
87) A key issue in the "millennium round" of the WTO was to
A) increase barriers to cross-border trade in agricultural products.
B) extend GATT to cover trade in commodities.
C) further reduce barriers to cross-border trade and investment.
D) extend GATT rules to cover trade in services.
88) Inadequate protections for intellectual property
A) increase the incentive for innovation.
B) led to the Smoot-Hawley Act.
C) reduce the incentive for innovation.
D) are one of the issues addressed by the local content requirement.
89) ________ in agriculture could jump-start economic growth among the world's poorer nations
and alleviate global poverty.
A) Quota rents
B) Free trade
C) Strategic trade policy
D) Subsidies
90) Which of the following is a drawback of government intervention?
A) It may invite retaliation and trigger a trade war.
B) The policies may be captured by foreign investors and turned to their advantage.
C) Despite being well executed, the intervention is unlikely to work.
D) They usually establish new tariff levels on technology—to the detriment of all in the industry.
91) Which of the following is a trade barrier that affects a firm's strategy?
A) Tariffs lower the cost of exporting.
B) Quotas may enhance a firm's ability to serve a country from outside of that country.
C) To conform to local content regulations, a firm may have to locate more production activities in
a given market than it would otherwise.
D) The threat of antidumping actions promotes the firm's ability to use aggressive pricing to gain
market share in a country.
92) Many firms, of all national origins, increasingly depend on ________ for their competitive
advantage.
A) globally dispersed production systems
B) specific tariffs
C) infant industries
D) subsidies
93) Identify the true statement about trade barriers.
A) They lower the costs of exporting products to a country.
B) They may put a firm at a competitive advantage to indigenous competitors.
C) They may help a firm to serve a country from locations outside of that country.
D) To conform to local content regulations, a firm may have to locate more production activities in
a given market than it would otherwise.
94) Many firms, of all national origins, increasingly depend on ________ for their competitive
advantage.
A) globally dispersed production systems
B) specific tariffs
C) infant industries
D) subsidies
95) Business firms that lobby their governments to engage in protectionism may miss the
opportunity to build ________ by constructing a globally dispersed production system.
A) an absolute advantage
B) a competitive advantage
C) a strategic trade advantage
D) a comparative advantage
96) Compare and contrast import quotas and voluntary export restraints.
97) Describe the Buy America Act. What is its connection with local content requirements?
98) Define dumping. How do governments respond to charges of dumping?
99) Explain the notion of predatory behavior with regard to dumping.
