True / False
1. In the Pesquera Mares Australes v. United States case, the court found that the Chilean salmon exporter had not
violated U.S. antidumping laws.
a. True
b. False
2. The WTO frequently impose regulatory methods to control imports into their markets.
a. True
b. False
3. The GATT escape clause allows member nations to take drastic permanent measures to protect a domestic industry
and thereby preserve jobs.
a. True
b. False
4. In the Bulk Aspirin from China case, the ITA decided to treat the private exporters the same as the government-
owned exporters.
a. True
b. False
5. The United States International Trade Commission investigated the Harley-Davidson complaint that imports of
competitive motorcycles were damaging the domestic industry, however the argument for protection baseless.
a. True
b. False
6. If domestic workers are damaged by foreign competition, they may be entitled to two (2) years of state
unemployment benefits and federal trade adjustment assistance.
a. True
b. False
7. Dumping does not require that the product be sold in the home country for less than the cost to produce it.
a. True
b. False
8. To obtain import relief under U.S. law, the domestic industry must prove that the foreign producer or government
has undertaken an illegal or unfair action in its export policy.
a. True
b. False
9. The International Trade Commission is the U.S. agency that investigates and after reviewing all the evidence makes
the final determination whether or not import relief will be granted to a domestic firm.
a. True
b. False
10. A provisional measure is a tariff imposed by a country in order to ensure that dumping does not take place.
a. True
b. False
11. Dumping does not occur when there is no market for the product in the home country.
a. True
b. False
12. An upstream subsidy is granted by a government to a company that is based in another country, but has substantial
business operations in the home country.
a. True
b. False
13. The President of the United States can by executive order provide import relief in the form of temporary tariff
increases or quotas without having to consult any other organization.
a. True
b. False
14. The GATT Agreement has an escape clause whereby member nations may levy increased duties on imported
products where there are unforeseen circumstances that cause or threaten serious injury to domestic producers.
a. True
b. False
15. The GATT Agreement on Safeguards permits a member state to increase tariffs on an imported product in order to
allow a domestic manufacturer to successfully introduce a competitive product in the domestic market.
a. True
b. False
16. Under U.S. law, a petition for import relief may be filed with the International Trade Commission by any firm, trade
association, union, or group of workers.
a. True
b. False
17. Quotas are not permitted under GATT or under U.S. law as a method of protecting domestic industries, unless a
trade compensation is provided as a form of compensation.
a. True
b. False
18. Global quotas are quantitative import restrictions on a particular product regardless of its country of origin.
a. True
b. False
19. If the International Trade Commission reaches an affirmative decision in an escape clause action, workers, firms,
and communities may be eligible for federal adjustment assistance.
a. True
b. False
20. Dumping is the unfair trade practice of selling products in one country for less than the price charged for comparable
goods in the producer’s home market.
a. True
b. False
21. Dumping has become a fairly persistent problem in international trade and is often practiced by firms wishing to sell
their excess production capacity at bargain prices to cover fixed costs.
a. True
b. False
22. The antidumping duty imposed under U.S. law is based on the amount by which the foreign market value exceeds
the cost of production by at least 10%.
a. True
b. False
23. Under the law of the European Union, a country may only bring an antidumping action against a non-EU member
country.
a. True
b. False
24. Under U.S. law, the foreign market value for antidumping duty determination is calculated as either home market
sales price, sales of like products in third countries, or “normal value at the retail level.”
a. True
b. False
25. A subsidy is some advantage or favor granted by a government to its firms upon the manufacture, production, or
export of a product, and such actions are beneficial to the international economy.
a. True
b. False
26. Subsidies including domestic subsidies are regulated under the GATT Agreement.
a. True
b. False
27. The GATT Agreement authorizes countervailing duties to offset the effect of subsidies on imports that cause or
threaten material injury to a domestic industry.
a. True
b. False
28. The U.S. countervailing duty statute requires that the International Trade Commission determine the fair market
price of the imported product in the country of origin.
a. True
b. False
29. If a country is not a member of GATT, under U.S. law a countervailing duty can be imposed without regard to
whether a U.S. firm is injured or not.
a. True
b. False
30. The “material injury” requirement under the U.S. unfair import statutes requires a finding of less harm than does the
“serious injury” requirement in the U.S. escape clause.
a. True
b. False
31. An appeal to the appropriate federal court may be had from a decision by the International Trade Administration not
to conduct an investigation concerning the dumping of a product.
a. True
b. False
32. All subsidies are even those that are beneficial to domestic economic and social objectives are considered damaging
to the international economy.
a. True
b. False
33. Antidumping and countervailing duty cases may be appealed to the U.S. Court of International Trade in all of the
following situations except:
a. A decision by the International Trade Association not to conduct an investigation.
b. From a decision by the ITA to conduct an investigation.
c. From a final decision by the International Trade Association (ITA).
d. From a decision by the ITA to suspend an investigation.
34. The U.S. law that protects against “fairly traded” imported products is:
a. Countervailing duty.
b. Antidumping statute.
c. Escape clause.
d. Import relief.
35. Section 201 of the Trade Act of 1974 provides authority for the president to do what, if barriers to U.S. trade are not
lifted?
a. Petition Congress to intervene in the situation.
b. Threaten military action if the barriers are not lifted.
c. Use retaliation in the form of duties or quotas.
d. Pay the U.S. company a subsidy.
36. The “escape clause” of the GATT agreement derives its name from the fact that:
a. It allows a country to escape from having trade disputes settled by GATT guidelines.
b. It permits a country to escape from its previously negotiated tariff obligations.
c. It permits a country to be relieved of having to make its balance of payments obligations for a short period of
time.
d. None of the above.
37. The U.S. law dealing with import relief is:
a. Art. 8, Sec. 1, U.S. Constitution.
b. Sec. 333, U.S. Import Relief Act.
c. Sec. 201, Trade Act of 1974.
d. GATT, Art. XIX.