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51. Which of the following best indicates the motive for foreign firms to engage in dumping?
52. Which of the following is considered to be the ultimate objective of antidumping policies?
53. Which of the following is the most common political argument for government intervention in international
trade?
54. The country of Cadmia, which is a leading producer of bauxite, had to impose trade sanctions on Cerian
soda cans in order to get the government of Ceria to enforce export restraints. This imposition by Cadmian
government was undertaken to protect domestic producers of soda cans. Which of the following government
intervention is being used by Cadmia?
55. Why is retaliation by government intervention a risky strategy?
56. Cadmia banned imports of Mattel toys with high levels of toxic lead, manufactured in Argonia. The
underlying motive for such a move could be:
57. The act that allows Americans to sue foreign firms that use property in Cuba confiscated from them after the
1959 revolution is known as the:
58. Many developing countries have a potential comparative advantage in manufacturing, but new
manufacturing industries cannot initially compete with well-established industries in developed countries,
according to:
59. One of the main reasons why many economists remain critical of the infant industry argument is its reliance
on the assumption that:
60. Which of the following is a major reason why many economists remain critical of the infant industry
argument?
61. A government should use subsidies to support promising firms that are active in newly emerging industries,
according to:
62. According to Paul Krugman, a country that attempts to use strategic trade policy to establish a domestic firm
in a dominant position in a global industry, is most likely to:
63. According to Krugman, which of the following best indicates the dangers of a strategic trade policy?
64. According to Krugman, the ideal way for a country to respond, when the foreign competitors of its
companies are already being supported by government subsidies, is probably not to engage in retaliatory action,
but to:
65. Which of the following is an argument against embracing strategic trade policy?
66. The economically damaging effects of the Great Depression were worsened in 1929 by the:
67. The Smoot-Hawley Act had a damaging effect on:
68. Which of the following multilateral agreements was established under U.S. leadership in 1947, with the
objective to liberalize trade by eliminating tariffs, subsidies, import quotas, and the like?
69. Which of the following statements is true regarding GATT?
70. One of the reasons why protectionist pressures arose around the world during the 1980s was:
71. Which of the following best explains the reason for the rise in protectionist pressures around the world
during the 1980s?
72. Bilateral voluntary export restraints, or VERs, circumvented GATT agreements, because:
73. Which of the following is a provision of the Uruguay Round Agreement?
74. The United States accused Libya and Iran of supporting terrorist action and building weapons of mass
destruction. The U.S. government, therefore, imposed trade sanctions against the two countries. Which of the
following political arguments does this exemplify?
75. The WTO's Agreement on which of the following is an attempt to narrow the gaps in the way intellectual
property rights are protected around the world and to bring them under common international rules?
76. Which of the following indicates the difference between GATT and WTO?
77. Which of the following is true regarding the difference between GATT and WTO?
78. Why did telecommunications companies welcome the telecommunication deal brokered by WTO in 1997?
