Practice questions for EC340 Midterm Exam #2 1. To help its domestic producers‚ the United States unilaterally raised tariffs on ____ in early 2002‚ but after a ruling against the United States by the WTO‚ it was forced to remove the tariff. A) autos B) steel C) tires D) dairy products Use the following to answer questions 2-6: SCENARIO: GUATEMALA ’S TELEVISION MARKET This table gives the hypothetical supply and demand of television sets in Guatemala. Guatemala is a small country that is unable
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issues: the tariff over the free movement of trading goods; the pesticide residue under non-tariff barrier. Respectively as the representative outcome of economic globalization and regional integration‚ WTO and EU are different in some principles despite of their interaction and similarity. Thereupon‚ subject to WTO and EU laws‚ the legitimacy of trading is critical to the development and policy-making of import and export trade between within member countries. 2. Case Studies on Tariff over the
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cost of living is high‚ imports are high‚ and the overall economy is suffering. Businesses are suffering because it is cheaper to import goods than it is to produce them in the US. With this in effect‚ the GDP is suffering as well. Even with the tariffs and quotas that the government has put on these items coming into the country‚ it is still cheaper to purchase from overseas. The macroeconomy of the US is suffering as a whole. When there is a surplus of imports coming into the US‚ the manufacturing
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CHAPTER 8 REGIONAL TRADING AGREEMENTS MULTIPLE-CHOICE QUESTIONS 1. The European Union is primarily intended to permit: a. Countries to adopt scientific tariffs on imports b. An agricultural commodity cartel within the group c. The adoption of export tariffs for revenue purposes d. Free movement of resources and products among member nations 4. Customs union theory reasons that the formation of a customs union will decrease members’ real welfare when the: a. Trade diversion effect exceeds
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produce or are cheaper elsewhere. Barriers to trade can be categorised into tariff barriers and non-tariff barriers. Tariff barriers include tariffs‚ subsidies‚ quotas and embargoes; they all directly manipulate the price of imports/exports. Non-tariff barriers are anything else that reduces trade‚ without directly manipulating price‚ e.g. Regulation of Goods‚ Political influence or product differencial. Tariffs are effectively taxes on importing certain goods‚ therefore increasing the price
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as wheat and corn. 5) Great Britain and the U.S. did develop comparative advantage in their expected areas‚ and the theory is supported by historical data. 2. (2 pts) What were the Corn Laws? The Corn Laws were laws that created high tariffs on foreign grains (3 pts) Explain how and why they were finally repealed. These laws were repealed for several reasons. For one‚ the arguments of David Ricardo showed the economic benefits of free trade. Another was the fact that industrialization
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CHAPTER 9 REGIONAL TRADING Arrangements MULTIPLE-CHOICE QUESTIONS 1. THE EUROPEAN UNION IS PRIMARILY INTENDED TO PERMIT: a. Countries to adopt scientific tariffs on imports b. An agricultural commodity cartel within the group c. The adoption of export tariffs for revenue purposes d. Free movement of resources and products among member nations 2. Which of the following represents the stage where economic integration is most complete? a. Economic union
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___________________________________________________________________________________________________ 1. Trade facts 1-9 2. Comparative advantage 10-55 3. Supply and demand analysis of exports and imports 56-79 4. Types of trade barriers 80-87 5. Analysis of tariffs and quotas 88-118 6. Arguments for protectionism 119-125 7. World Trade Organization 126-128 Consider This 129-130 Last Word 131-132 True-False 133-151 ___________________________________________________________________________________________________
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North vs. South The North and South had many differences and very little similarities. They each focused on industry‚ agriculture‚ slavery and tariffs. Even though they both strived to manufacture and evolve their land in the revolution‚ they both had many different views. The North often debated with the South about slavery‚ which created a lot of their rivalries. This event helped them start on their own to soon develop their land into a greater industry. In the North‚ their industry
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INSTRUCTORS MANUAL: MULTINATIONAL FINANCIAL MANAGEMENT‚ 9TH ED. SUGGESTED ANSWERS TO CHAPTER 1 QUESTIONS 1.a. What are the various categories of multinational firms? ANSWER. Raw materials seekers‚ market seekers‚ and cost minimizers. b. What is the motivation for international expansion of firms within each category? ANSWER. The raw materials seekers go abroad to exploit the raw materials that can be found there. It just happens that nature didn’t place all natural resources domestically. Market
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