Chapter 6

Chapter 6
Student: ___________________________________________________________________________

1.

Which of the following refers to a situation where a government does not attempt to restrict what its citizens can buy from another country or what they can sell to another country?
A. Free trade
B. Unencumbered trade
C. Sovereign trade
D. Autonomous trade
E. Open trade

2.

Which of the following is not an example of one of the main instruments in trade policy used by governments around the world?
A. Tariffs
B. Political mandate
C. Subsidies
D. Import quotas
E. Local content requirements

3.

__________ are the oldest and simplest instrument of trade policy.
A. Subsidies
B. Administrative policies
C. Tariffs
D. Voluntary export restraints
E. Price discrimination

4.

A __________ is a tax levied on imports.
A. tariff
B. special assessment
C. penalty
D. globalization assessment
E. GST

5.

Components of ___________ include tariffs, subsidies, import quotas, voluntary export restraints, local content requirements, administrative policies, and antidumping duties.
A. trade policy
B. ad valorem
C. tradereconciliation
D. sociocultural dimension
E. national economic development

6.

__________ are levied as a fixed charge for each for each unit of a good imported.
A. Specific tariffs
B. General tariffs
C. Ad valorem tariffs
D. Global tariffs
E. Sales taxes

7.

While __________ tariffs are levied as a fixed charge for each unit of a good imported, __________ tariffs are levied as a proportion of the value of the imported good.
A. general; special
B. ad valorem; special
C. global; special
D. specific; ad valorem
E. predatory; percentage

8.

Tariffs fall into two categories-A. specific tariffs and ad valorem tariffs.
B. global tariffs and domestic tariffs.
C. general tariffs and specific tariffs.
D. flexible tariffs and ad valorem tariffs.
E. domestic tariffs and GATT

9.

Tariffs cause the most damage to __________, According to the author of the textbook, because this