38. The requirements for import relief under U.S. law include all of the following except:
a. Increased imports.
b. Imports are substantial cause of serious injury or threaten injury.
c. Domestic industry produces a product that is like or directly competitive with the import.
d. Circumstances causing this situation were unforeseen.
39. When a petition for import relief is filed with the International Trade Commission, the ITC conducts an investigation
and must consider all the following factors except:
a. Idling of productive facilities in the industry.
b. Unemployment in the industry.
c. Ability of industry to shift to production of other products.
d. Increase in imports.
40. Quotas are often favored over tariffs as import restrictions because:
I. They are more flexible tools for regulating imports.
II. It is easier for government policy makers to assess the potential impact of a quota.
a. I only.
b. II only.
c. Both I and II.
d. Neither I nor II.
41. To be eligible for adjustment assistance due to import competition, the Secretary of Labor must certify all of the
following except:
a. Significant number of workers lost jobs.
b. Sales/production of the firm has decreased.
c. Increases in imports of articles like or directly competitive with those made by petitioner contributed
importantly to the loss of jobs.
d. The workers/jobs lost because of the increase in imports cannot be relocated to other industries.
42. Under U.S. law, antidumping duties can be imposed where:
I.
It is determined that a class of foreign merchandise is being, or likely to be, sold in the U.S.
at less than fair value, and a domestic industry is injured as a result.
II.
A domestic industry needs protection to update its technology to compete with the dumped
product.
a. I only.
b. II only.
c. Both I and II.
d. Neither I nor II.
43. In determining if a sale is less than fair value, the International Trade Administration:
a. Determines if the dumped product is being sold below its cost of production.
b. Determines the fixed and variable overhead costs of the dumped product to see what profit the dumping
company should expect.
c. Compares the foreign market value of the imported product with the U.S. price.
d. None of the above.
44. In non-market economy countries, the determination of foreign market value is usually based on:
a. The use of “constructed value.”
b. Home market sales.
c. Third country sales.
d. Both A and C.
45. If country A gives favorable tax treatment to XYZ, Inc. a corporation in country A, because XYZ, Inc. exports a
large number of widgets, this tax break is referred to as a(an):
a. Consortium.
b. Export Subsidy.
c. Export Rebate.
d. Tariff Supports.
46. U.S. countervailing duty statutes:
I. Countervail all export subsidies.
II. Countervail all domestic subsidies.
a. I only.
b. II only.
c. Both I and II.
d. Neither I nor II.
47. Subsidies in non–market economy countries are difficult to determine because:
a. Their countries are secretive and do not allow economic information to escape.
b. Foreign trade is limited and there are no comparative situations.
c. These countries have few subsidies and the ones they have are very small.
d. Foreign trade decisions are made by the state trading organization and exports benefit from many economic
advantages designed to meet an overall plan.
48. There are two types of import protection regulations in the U.S.:
I. Laws that provide relief to protect developing U.S. domestic companies.
II. Laws that allow non–market economy nations a financial break.
a. I only.
b. II only.
c. Both I and II.
d. Neither I nor II.
49. The GATT escape clause:
a. Allows a country to take temporary corrective action to protect a domestic industry.
b. Allows members who no longer wish to be a part of the WTO to quit.
c. Allows a country to impose tariffs on countries that are engaging in dumping.
d. Allows a country to disaffirm any previous tariffs they have imposed on another GATT member.
50. In determining whether increased imports are a substantial cause of serious injury, the ITC does not consider:
a. Unemployment or underemployment in the industry.
b. Growing inventories.
c. Overall economic trends.
d. An actual increase in imports or in market share held by imports.
e. All of the above are considerations.
51. Available forms of import relief include:
a. Absolute quotas.
b. Auctioned quotas.
c. Tariff increases (up to 50 percent).
d. domestic subsidies.
e. a, b, and c.
52. In response to the petition for relief filed by Harley–Davidson Motor Company:
a. A ban on imported motorcycles above 700 cubic cent. was implemented.
b. The commission recommended that declining incremental duties on imported motorcycles be imposed for five
years.
c. Honda agreed to stop the export of its larger motorcycles for five years.
d. The president threatened severe trade sanctions on Japan if they did not stop their dumping of motorcycles on
the American market.
53. Which of the following does not characterize a difference between U.S. and EU antidumping laws?
a. The duration of an antidumping duty has no time limit under U.S. law, but EU law imposes a five–year
maximum duration.
b. Under U.S. law, the duty equals the dumping margin, whereas under EU law, it may vary based on the injury.
c. Under U.S. law, a duty is imposed retrospectively, while under EU law, it may be imposed prospectively.
d. All of the above.
e. None of the above.
54. A subsidy exist where the government has conferred a benefit to a domestic firm or industry, except
a. Lower tax rate
b. Guarantee low interest loans
c. Buying goods from domestic firms at higher market prices
d. Grants to research universities
55. Which of the following might be considered a sign of market disruption within domestic firms due to increased
imports of foreign goods?
a. decreased sales volume
b. price suppression
c. lower wages
d. all of the above
56. Which of the following factors is used to determine whether dumped imports have caused material injury to an
industry?
a. the volume of the dumped imports
b. the effect of the imports on prices of like products in the domestic market
c. the impact on domestic industry
d. all of the above
57. An actionable subsidy is one that:
a. causes material injury to the domestic producers of a like product in the complaining country.
b. violates a trade agreement.
c. causes “serious prejudice” to the interests of the complaining country.
d. all of the above
58. Assess the various legal “tools” available to the president to gain freer access to foreign markets for U.S. products.
59. Describe the ways in which U.S. trade legislation is and is not based upon GATT legal principles. Give several
examples.
60. Consider the differential domestic and foreign political ramifications of the following U.S. trade laws: Section 201
escape clause, the antidumping statute, and the countervailing duty statute.
61. What are the similarities and differences between unfair trade and fair, but economically damaging trade?
62. Weigh the strengths and weaknesses of all possible actions a country can take to protect its market against unfair
trade.
63. Identify and evaluate the importance of the several factors taken into account in an ITC proceeding to impose import
restrictions.
64. Consider the relative merits of including debt expenses in the calculation of the fair market value of an imported
product. Consider this both in terms of the business exporting the good and the business importing the good.
65. Draft a statue defining a domestic industry. Draft statutes from the perspective of Westernized, developed nations
and from developing nations.
66. Draft a statute or treaty defining a non-market or state-controlled economy OR identifying which factors should be
considered in making such a determination and how they should be applied.
Essay
The USTR has requested your advice on whether the following are legal pursuant to the GATT. Please
explain each of your answers.
67. Scenario
Reduced rate loans offered by U.S. banks to U.S. businesses willing to relocate their operations to economically
depressed inner cities.
68. Scenario
Loan guarantees by the French government to French filmmakers who utilize French equipment in the making of
their movies.
69. Scenario
An across-the-board reduction by the United States in the corporate tax rate.
70. Scenario
Tax credits extended by the Japanese government to Japanese computer chip manufacturers on the basis of the
volume of their chip sales in the United States.
71. Scenario
Tax credits extended by the government of India to Indian companies in order to assist in the reduction of
greenhouse gases emitted during the manufacturing process.
72. The President of the United States is concerned about the declining number of American companies engaged in the
manufacture of computer chips. In order to reinvigorate U.S. computer chip manufacturers, the President has
proposed that the United States unilaterally impose an absolute ban upon the importation of computer chips from
Japan for an indefinite period of time to be determined in his complete discretion. The President has asked you
whether his proposal is legal pursuant to the GATT. What is your response? Please explain the basis for your
conclusions.