International Trade

What is a primary benefit of international trade regarding production efficiency?

Which group primarily bears the costs of international trade?

What is the net effect of trade on the economy as a whole?

How does a tariff affect the domestic price of an imported good?

Which entity benefits from the imposition of a tariff?

What is a 'quota' in the context of trade restrictions?

Under a quota system, if the domestic government charges for import licenses, the result is similar to which other restriction?

Who captures the 'quota rent' if the domestic government does not charge for import licenses?

What does VER stand for in trade terminology?

Who captures the quota rents in a Voluntary Export Restraint (VER)?

What is the primary purpose of an export subsidy?

How does an export subsidy affect the price of the good in the exporting country?

What is the effect of an export subsidy on consumer surplus in the exporting country?

For a small country, by how much does the domestic price increase given an export subsidy?

When a large country implements an export subsidy, how are foreign producers affected?

What term describes the replacement of higher-cost domestic production by lower-cost imports from member countries after regional integration?

What term describes replacing lower-cost imports from non-member countries with higher-cost imports from member countries?

Which trading bloc involves no barriers among members but allows each member to set its own policy with non-members?

Which trading bloc adds a common set of trade restrictions with non-members to the features of a Free Trade Area?

What distinguishes a Common Market from a Customs Union?

Which trading bloc requires member countries to establish common economic institutions and policy?

What is the defining feature of a Monetary Union?

NAFTA is an example of which type of trading bloc?

The European Union (EU) is listed as an example of which trading bloc level?

Which trading bloc corresponds to the 'Euro-zone'?

Does a Free Trade Area have common trade restrictions with non-members?

Which trading bloc allows for the free movement of labor among member countries?

In the hierarchy of trading blocs, which level comes immediately after a Customs Union?

Which of the following describes the cost of trade related to employment?

What type of product allocation is a benefit of trade?

When a large country applies an export subsidy, what happens to the world price?

Who benefits from the lower world price caused by a large country's export subsidy?

Which restriction protects domestic consumers in the importing country the most relative to the others?

What is the primary beneficiary group of a Voluntary Export Restraint (VER) in the importing country?

Which trade restriction involves the government of the exporting country agreeing to limit volume?

What happens to domestic producers when a tariff is imposed?

What happens to foreign exporters when a tariff is imposed?

Does an Economic Union have a single currency?

Which trading bloc has the highest level of integration?

In a Customs Union, how are trade restrictions with non-members handled?

What effect does a tariff have on the quantity imported?

If a government sells import licenses for the full value of the potential rent, the quota is equivalent to:

What is 'Trade Diversion' primarily associated with?

Which of the following implies that a country specializes in the production of one good and benefits from economies of scale?

What is the impact of international trade on income inequality?

Which country is part of NAFTA?

In the context of quotas, what is 'quota rent'?

Does a Monetary Union imply a Common Market?

Which bloc involves 'common institutions'?

Trade creation is defined by the replacement of production from:

When a small country imposes an export subsidy, the domestic price rises to: