AGB 302 QUIZ 3 LATEST UPDATE GRADED A

AGB 302 QUIZ 3 LATEST UPDATE GRADED A Free Trade refers to a situation where a government does not attempt to influence through quotas or duties what its citizens can buy from another country New trade theory Stresses that in some cases countries specialize in the production and export of particular products because the world market can support only a limited number of firms Mercantilism supports the idea that countries should export more than what they import adam smith argued that countries should specialize in the production of goods for which they have an absolute advantage. a straight line The production possibility frontier will be ________ if constant return to specialization is observed The Heckscher-Ohlin theory predicts that countries will: export those goods that make intensive use of factors that are locally abundant. product life-cycle theory The ________ argues that a large proportion of the world's new products had been developed by U.S. firms. economies of scale The variety of goods that a country can produce is limited by the size of the market in industries where ________ are important. Free Trade Refers to a situation where a government does not attempt to influence through quotas or duties what its citizens can buy from another country? Mercantilists view trade as a zero-sum game Which of the following is a major flaw associated with mercantilism? Voluntary export restraint ________ is a quota on trade imposed by the exporting country, typically at the request of the importing country's government Tariff rate quotas are common in agriculture, where their goal is to: limit imports over quota Which of the following statements concerning a voluntary export restraint is true? It benefits domestic producers by limiting import competition According to the Buy America Act, if a company wishes to win a contract from a U.S. government agency to provide some equipment, it must ensure that at least 51 percent of the product by value is manufactured in the United States. This is an example of: local content requirements ________ is variously defined as selling goods in a foreign market at below their costs of production or as selling goods in a foreign market at below their "fair" market value dumping The U.S. government has used the threat of punitive trade sanctions to try to get the Chinese government to enforce its intellectual property laws. This is an example of government intervention based on: retaliation According to the ________ argument, governments should temporarily support new industries until they have grown strong enough to meet international competition. infant industry Economic problems during the Great Depression were compounded in 1930 when the U.S. Congress passed the ________, aimed at avoiding rising unemployment by protecting domestic industries and diverting consumer demand away from foreign products. smoot-hawley According to the 1986 Uruguay Round, the ________ was to be created to implement the GATT agreement. World Trade Organization The WTO argues that removing tariff barriers and subsidies in the agricultural sector could: lower prices to consumers