INTERNATIONAL TRADE - ECON 4431W

Textbook: INTERNATIONAL ECONOMICS by Appleyard and Field (9th edition; McGraw Hill)

1.True/False and explain

a. In the U.S, countervailing duties are levied on imported goods if they receive an export subsidy from the foreign government.

b. An export tax is helpful for a country because the burden falls on foreign consumers and producers.

c. For a Tariff-Rate Quota, the government imposes an import tariff and an import quota.

d.To provide the maximum protection for an industry, the nominal rate of protection must be less than the effective rate of protection.

e. The formation of a Monetary Union implies that the member countries have different monetary and fiscal policies, but have the same currency.