1. What are the (a) Negative effects and (b) Positive effects on a nation’s citizens of imposing restrictions on imports?

2. List the arguments in favor of protectionism? Which 3 of those arguments can you justify (rank these 3 in terms of most justifiable to least justifiable)?

3. Is Total Trade Surplus or Trade Deficit better for U.S.? Discuss. Are you “happy” with the current status of trade between U.S and China? State your reasons. What do you recommend to rectify the current trade situation?

4. What is the Antidumping Law in the context of International Trade? Who benefits by this law? Who loses? Research and report on a recent violation of this law and on any penalties imposed.

5. What are the implications of these messages for the U.S economy and corporations.

6. In the context of nontariff barriers, antidumping practices fall under the category of

A. Specific limitations on trade.

B. Customs and administrative entry procedures.

C. Standards.

D. Governmental participation in trade.

E. Charges on imports.

7. The fundamental difference between quotas and import licenses is that:

A. Import licenses have greater flexibility than quotas.

B. Quotas impose specific limitations on trade and import licenses take care of standards.

C. Quotas are imposed on export goods and import licenses are imposed on import goods.

D. For quotas the exporting country sets the limits but licenses are issued by the importing country.

E. Unlike licenses, quotas limit quantities on a case-by-case basis.

8. When the United States refuses to sell goods to Iran because of the perception that the country harbors radicals and terrorists, the refusal is most accurately referred to as a(n):

A. Antidumping penalty.

B. Embargo.

C. Tariff.

D. Orderly market agreement.

E. Voluntary export restraint.

9. Which of the following trade policy tools makes it mandatory for its importers who want to buy a foreign good to apply for an exchange permit?

A. Tariff

B. Import quota

C. Blocked currency

D. Government approval

E. Export levies

10. Which of the following is an adverse consequence of globalization?

A. Nationalization of private sector holdings.

B. Lower and more competitive oil prices.

C. Reduced variety and quality of goods and services.

D. Worker exploitation and domestic job losses.

E. Provision of loans from the World Bank.