Impact of Tariffs on Small Nations Quiz

What is one of the risks associated with protectionist measures according to the text?

Retaliation from other countries (correct)

Increased export opportunities

Lower consumer prices

Enhanced global cooperation

Why might consumers face higher prices as a result of protectionism?

Increased competition from foreign goods

Government subsidies for domestic products

Removal of tariffs on foreign goods

Reduced competition from foreign goods (correct)

How can health and safety regulations impact international trade according to the text?

Act as barriers by raising costs of imported products (correct)

Increased demand for foreign goods

Lower production costs for imported products

Facilitate government purchasing restrictions

Which concept supports the idea that protectionism can lead to an inefficient allocation of resources?

Theory of the Second Best Signup and view all the answers

What type of dumping can protectionism potentially lead to that hinders economic growth?

Predatory dumping Signup and view all the answers

How might national procurement impact international trade negatively according to the text?

Biased against foreign goods by favoring domestic products Signup and view all the answers

What is the purpose of a local content requirement regulation?

To require a specified fraction of a final good to be produced domestically Signup and view all the answers

How did OPEC affect the price of crude oil in the 1970s?

By restricting production and exports to increase total profits Signup and view all the answers

What does dumping refer to in the context of global trade?

Exporting commodities below cost or selling them at lower prices abroad Signup and view all the answers

How is persistent dumping defined in the global trade context?

The continuous practice of a domestic monopolist to sell commodities below cost in the domestic market Signup and view all the answers

What is the aim of predatory dumping in global trade?

To drive foreign producers out of business by selling commodities below cost abroad Signup and view all the answers

How did local content regulations benefit domestic producers?

By providing protection similar to import quotas for domestically produced parts Signup and view all the answers

What is the purpose of sporadic dumping?

Unloading surplus of a commodity abroad Signup and view all the answers

What triggered the U.S. to introduce a trigger-price mechanism in 1978?

Price matching the lowest cost international producer Signup and view all the answers

What industries were involved in later antidumping suits as mentioned in the text?

Semiconductors and textile/apparel Signup and view all the answers

How do protectionist policies impact global trade according to the text?

Shape long-term implications on global trade Signup and view all the answers

What is the purpose of anti-dumping duties?

Offset predatory dumping by foreign producers Signup and view all the answers

In a globalized world, what do future considerations revolve around according to the text?

Debate around protectionist policies Signup and view all the answers