Ed Imm INTB 3080 Exam 3 Part 1
Questions with Complete Solutions4
Free trade - ANSWERS-The absence of barriers to the free flow of goods and services between
countries
General Agreement on Tariffs and Trade (GATT) - ANSWERS-international treaty that committed
signatories to lowering barriers to the free flow of goods across national borders and led to the
WTO.
tariffs, subsidies, import quotas, voluntary export restraints, local content requirements,
administrative policies, and antidumping duties - ANSWERS-Trade Policies 7 main instruments
tariff - ANSWERS-a tax levied on imports, also the oldest and simplest instrument of trade policy
specific tariff - ANSWERS-Tariff levied as a fixed charge for each unit of good imported. ($3 per
barrel of oil)
ad valorem tariff - ANSWERS-A tariff levied as a proportion of the value of an imported good
(25% tax on foreign steel by pres trump are paid for by importers in America)
2 conclusions about tariffs - ANSWERS-1) pro-producer and anti-consumer and 2) import tariffs
reduce the overall efficiency of the world economy
Subsidies - ANSWERS-Government financial assistance to a domestic producer
Questions with Complete Solutions4
Free trade - ANSWERS-The absence of barriers to the free flow of goods and services between
countries
General Agreement on Tariffs and Trade (GATT) - ANSWERS-international treaty that committed
signatories to lowering barriers to the free flow of goods across national borders and led to the
WTO.
tariffs, subsidies, import quotas, voluntary export restraints, local content requirements,
administrative policies, and antidumping duties - ANSWERS-Trade Policies 7 main instruments
tariff - ANSWERS-a tax levied on imports, also the oldest and simplest instrument of trade policy
specific tariff - ANSWERS-Tariff levied as a fixed charge for each unit of good imported. ($3 per
barrel of oil)
ad valorem tariff - ANSWERS-A tariff levied as a proportion of the value of an imported good
(25% tax on foreign steel by pres trump are paid for by importers in America)
2 conclusions about tariffs - ANSWERS-1) pro-producer and anti-consumer and 2) import tariffs
reduce the overall efficiency of the world economy
Subsidies - ANSWERS-Government financial assistance to a domestic producer
