Test: Ch 6 and Associated Topics (Based on the Textbook and Class Lectures and Notes) Please Give Short Precise Answers and Number Your Answers -Answer in the sequence of the questions and write the question number and "No Answer" in case you are not answering a question. 1. For the each of the statements below (a, b, c, d) specify whether in that situation we are talking of is: A tariff or a quota If it is a tariff, is it "ad valorem" (according to the value) Statements: (a) A 3% tax on the value of exports of wood Jitendra (b) A limit of $30000 on the import of steel by individual importers porters (c) A limit of 3000 metric tons on steel imports (d) A tax of $10 on every TV set imported 2. Give two reasons that a country may impose an export tariff on the export of crude oil from the country. 3. For each of the following specify whether: The 'entry' should be (included as an element in the balance of trade, or in the balance of payments, or in BOTH-balance of trade and balance of payments, and whether each is a positive or negative entry, considering USA to be the country. a. American companies sending (repatriationg) profits earned in China, back to USA b. An American store selling $50000 worth of clothes to a buyer in Malaysia C. General Motors buying $40000 worth of components from Hyundai, Korea. d. A Malaysian company investing $200000 in an American firm in Chicago e. American workers in Malaysia receiving $20000 from their families in USA as assistance f . American Red Cross sending $300000 worth of relief material for flood victims in Sri Lanka 4. Give a strong justification for "protectionism", preferably explaining the "infant industry argument". 5. When you are comparing living standards of the population in two countries you would like to use which of the two (a) GDP (b) GDP per capita, which is very similar to Per Capita Income. Explain why. 6. In each of the following situations, which of the following should be contacted (WTO, GATT, World Bank, IMF)