28 Questions
What are the three most frequently used types of non-tariff barriers (NTBs) referred to as temporary trade barriers?
Antidumping, countervailing duties, safeguards
Who established antidumping (AD) and countervailing duties (CVD) and for what purpose?
Developed nations to punish dumping due to predatory pricing and counteract subsidies
Which of the following is NOT a form of temporary trade barriers (TTBs)?
Subsidies
What is the primary purpose of safeguards (SGs) as mentioned in the text?
To limit imports due to surge in imports that injure the domestic industry
Which type of trade barriers are supposed to be temporary according to the text?
TTBs
How are antidumping (AD) and countervailing duties (CVD) applied in terms of scope?
Bilaterally for specific exporting countries
Which of the following is NOT a goal of antidumping (AD) as mentioned in the text?
To promote fair competition in international trade
What is the purpose of price undertakings in the context of temporary trade barriers?
'Price undertakings' involve firms charging different prices in different markets
What is the main purpose of antidumping duties according to the text?
To protect domestic industries from unfair competition due to dumping
How is the dumping margin calculated in the context of international trade?
By comparing the export prices with prices in foreign markets
In the case presented in the text, which entity was responsible for determining dumping and causing injury to the domestic industry?
European Commission
What was one major consequence of the dumping practices by Chinese exporters on the EU domestic industry?
Increased job losses and bankruptcies in the EU
Which entity benefits the most as a result of antidumping duties in the EU?
Domestic producers
What role did the European Bicycle Manufacturers Association play in the EU antidumping case against Chinese imports?
Petition for antidumping duties on Chinese imports
What was the range of antidumping duties imposed by the EU on Chinese imports?
21.8-83.6%
What is one reason why investigating authorities use surrogate countries to determine dumping margins?
To compensate for unavailable pricing data from specific countries
In an international trade context, why might firms charge lower prices in export markets according to the text?
To maximize profits in a competitive export market
What is a key factor that can lead a country's investigating authority to impose antidumping duties based on the text?
Import prices lower than fair value resulting in injury to domestic industry
What is the main benefit of Safeguards (SGs) over Anti-Dumping (AD) measures?
SGs aim to protect domestic industries without needing to prove unfair trade
In what scenario can a monopolistic competition firm engage in dumping?
When it faces higher marginal costs in the domestic market
Why is there a tendency for governments to impose higher tariff rates on final goods relative to inputs?
To protect domestic industries that produce final goods
How do Temporary Trade Barriers (TTBs) differ from Anti-Dumping (AD) duties?
TTBs do not require proving unfair trade practices, unlike AD duties
What could be a reason for an EU shoemaker facing higher import penetration rates if the EU imposes Anti-Dumping (AD) duties on leather?
Decrease in the European Retail Price (ERP)
What is the primary challenge associated with revoking Temporary Trade Barriers (TTBs) once they are imposed?
Political economy channels making revocation extremely difficult
What is the key difference between Safeguards (SGs) and Anti-Dumping (AD) measures?
SGs focus on protecting domestic industries without proving unfair trade practices
Why might a discriminating monopolist engage in dumping?
To maximize profits by charging different prices in different markets
What is the primary goal of Temporary Trade Barriers (TTBs)?
To provide temporary protection for domestic industries from import surges
Why do governments often impose higher tariff rates on final goods compared to inputs?
To protect domestic industries that produce final goods
Test your knowledge on non-tariff barriers (NTBs) such as antidumping duties (AD), countervailing duties (CVD), and safeguards (SG) used in international trade. Learn about the specific rules set by the WTO for temporary trade barriers (TTBs) and the various forms that TTBs can take.
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