Question
. Which of the following is NOT an example of a nontariff barrier to the free flow of goods and services in accordance with comparative advantage? A. import quotas B. government procurement provisions that favor home products C. specific duty of $1.00 per unit on each imported item D. voluntary export quotas (VERs) . The argument that a tariff can provide temporary protection to an industry so that the industry can expand, realize economies of scale, and eventually become an export industry is known as the A. antidumping argument B. national defense argument C. infant industry argument D. terms of trade argument t0. The existence of which type of dumping most likely constitutes the weakest argument for the imposition of an antidumping duty? A. predatory dumping B. persistent dumping C. sporadic dumping D. none of the above- predatory, persistent, and sporadic dumping all generate equivalent-strength arguments for the imposition of an antidumping duty 1. If two countries remove all tariffs on each other's products and establish a common set of tariffs against the rest of the world, but take no further steps toward economic integration, these two countries have formed A. a free-trade area B. a customs union C a common market D. an economic union 2. Which of the following is considered to be a positive dynamic effect of integration? A. economies-of-scale effects B. reduced customs costs C. trade diversion D. increased monopoly power of firms
Explanation / Answer
8. b) government procurement provisions that favor home products.
Government procurement provisions is a non tariff barrier but is not in accordance with comparative advantage.
9. c) infant industry argument
10. d) none of the above - predatory, sporadic and persistent dumping all generate equivalent strength arguments for the imposition of an antidumping duty.
11. b) a customs union
12. a) economies of scale effects
