1. In the United States, technical regulations and product standards can be set by:

a). The Consumer Product Safety Commission.

b). All of the other choices are correct and technical regulations and product standards can be set by each of them.

c). The Food and Drug Administration.

d). The Department of Transportation.

e). The Department of Agriculture.

2. Section 301 of the Trade Act of 1974 provides authority for the president to do what, if barriers to U.S. trade are not lifted?

a). Pay the U.S. company a subsidy.

b). Petition Congress to intervene in the situation.

c). Threaten military action if the barriers are not lifted.

d). Use retaliation in the form of duties or quotas.

3. Quotas are not permitted under GATT or under U.S. law as a method of protecting domestic industries.

True or False

4. Managed trade is:

a). A set of laws passed by the U.S. Congress in 1994 to protect the U.S. semiconductor industry from Japanese imports.

b). Illegal under U.S. law.

c). Used when arbitrators are called in to settle a trade dispute.

d). A principle under which a government sets trade goals for an industry and then uses a system of government incentives and controls to guide trade toward those goals.

5. Subsidies are regulated under the GATT Agreement.

True/False