Questions and Answers
What is the purpose of implementing import tariffs?
To protect domestic industries
Which term describes a tariff that is applied as a percentage of the price of the imported good?
Ad-valorem tariff
What is the role of export taxes in trade policy?
To discourage exports
Which trade policy instrument is specifically designed to counteract unfair pricing practices by foreign producers?
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How are most countries' import tariffs regulated in the World Trade Organization (WTO)?
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What is the primary effect of imposing import tariffs on consumer prices?
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In the context of trade policy instruments, what are 'non-tariff barriers' (NTBs)?
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'Countervailing duties' are specifically meant to address what issue in trade?
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'Local content requirements' are an example of which type of trade policy instrument?
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What is the significance of 'Welfare Function' in the context of trade policies?
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What does the change in welfare depend on?
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Why does a small country in a perfect competition setting have an optimal tariff of zero?
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What is the main purpose of a Voluntary Export Restraint (VER)?
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How do quotas compare to tariffs in a perfect competition market?
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What is the impact of import quotas efficiently auctioned by the government?
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Why did developed countries impose quotas on developing country exports of textiles and apparel between 1974 and 2004?
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In what scenario would a small importing country have a greater impact from a tariff?
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'C(y)' represents the cost of producing good 'y'. What does 'C'(y) signify?
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'Imports are m = d(p) - y'. What does 'y' represent in this equation?
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What is the role of 'tm' in the context of social welfare?
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Why does world welfare go down when the imposing country is small?
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What happens to the affected country when a large country imposes an import tariff?
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How does a large country benefit its producers when it provides export subsidies?
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What impact do trade policies by large economies have on world welfare?
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What measures can be classified as Non-Tariff Barriers (NTBs) according to the text?
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In what scenario would an importing country impose antidumping duties?
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What may safeguard measures include to protect domestic industries?
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What is the purpose of countervailing duties in international trade?
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What type of protection can a domestic industry request if facing increased imports causing harm?
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Which entities were involved in disputes regarding measures prohibiting the import and marketing of seal products as per the text?
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What effect does a quota have on market power compared to a tariff?
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How does a quota impact domestic prices compared to a tariff?
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What happens to the quantity of production by the domestic monopolist under a quota?
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In the context of imperfect competition, how does CAP's support mechanisms affect producer surplus?
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Who bears the cost of subsidies provided under strategic trade policy?
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Why would a country impose export taxes according to WTO rules?
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What is one reason why Europe became an exporter of agricultural products despite free trade expectations?
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Under WTO regulations, what is the impact of export subsidies on welfare?
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'Beggar-thy-neighbor' policies are most likely to result in what outcome?
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Under strategic trade policy, who should receive the subsidy?
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