Answer True or False for the following statements:

Product standards usually do not raise tariff or tax revenues for the importing country's government, rather, it leads to added expenses in order to enforce these standards.*

True

False

One of the main advantages of protectionism is the technological advancements led by domestic producers because of the high foreign competition. This gives an added incentive for the local producers to innovate or spend resources on research and development (R&D) of new products.*

True

False

Currency appreciation is an increase in the value of one currency in relation to another currency because of various reasons including the government policy, interest rates, trade balances, and business cycles.*

True

False

A floating exchange rate is a regime applied by a government or central bank ties the country's currency official exchange rate to another country's currency or the price of gold.*

True

False

The sum of all transactions recorded in the balance of payments (current account and capital account) is always equal to zero, without exception.*

True

False

A tariff assessed on a per-unit basis is an ad valorem duty, on a percentage of the item's value is a specific duty, and on both is called a compound duty.*

True

False

Currencies are always traded in pairs, so the "value" of one of the currencies in that pair is relative to the value of the other. This means if the value of one currency appreciates, the value of the comparing currency must increase as a result.*

True

False

A tariff (also called a duty) is a tax levied on a good shipped internationally. Tariffs collected by the exporting country are called export tariffs; if they're collected by a country through which the goods pass, they're transit tariffs; if they're collected by importing countries, they're import tariffs.*

True

False

Voluntary export restraints set limits on the number of goods and services a country can export to specified countries. These restraints are typically based on availability and political alliances.*

True

False

The primary reasons for imposing tariffs include the reduction in the importation of goods and services by decreasing their prices and the protection of domestic consumers.*

True

False

One of the reasons for implementing protectionist trade policies by a government is the infant-industry argument which holds that a government should shield an emerging industry from foreign competition by guaranteeing it a large share of the domestic market until it can compete on its own.*

True

False

A country with a high demand for its goods tends to export more than it imports, increasing demand for its currency. Whereas, a county that imports more than it exports will have less demand for its currency.*

True

False

Tariffs can make foreign-produced alternatives seem more attractive by making domestic-produced goods more expensive. Governments that use tariffs to benefit particular industries often do so to protect companies and jobs.*

True

False

The current account includes a nation's net trade in goods and services, its net earnings on cross-border investments, and its net transfer payments.*

True

False

Government Monopolism refers to government policies that restrict international trade to help domestic industries.*

True

False