Economics-trade regulations and Industrial policies

Economics-trade regulations and Industrial policies

2. Winners and losers from tariff reductions A3 A3 5.
Suppose that the United States Imports shoes from Brazil. The free market price is $15.00 per pair. If the tariff on
imports in the United States is 5.4%, Americans pay per pair.

One of the accomplishments of the Uruguay Round that took place between 1986 and 1993 was significant
across-the-board tariff cuts for industrial countries, as well as many developing countries. Suppose that as a result of
the Uruguay Round, the United States reduces its import tariffs to 3.5%. Assuming the price of shoes is $15.00 per
pair, consumers now pay the price of per pair.

Based on the calculations and the scenarios presented, the Uruguay Round most likely in
the United States and in Brazil.
3. Basic facts about the WTO Aa Aa 2.
The World Trade Organization (WTO) was built on the basis of the General Agreement on Tariffs and Trade (GATT)
and, thus, inherited many of Its features. Still, the WTO proved to be a very distinct institution. Which of the following
are the unique properties of the WTO? Check all that apply.

D Acts as a membership organization

D Brings trade in services, intellectual property, and investment into the multilateral trading system

D Acts as a provisional treaty

D Administers a unified package of agreements

D Includes side agreements
In which of the following cases can the United States raise tariffs on imports from another member of the WTO?

Q If the United States believes that the existing tariffs are too low

Q In response to unfair trade practices by that country

0 When the United States forms a customs union with that country

0 If all members of the WTO are notified about it

4. Issues in trade liberalization and WTO policies Aa Aa 2.
The case of the United States Imposing higher tariffs on the import of prepared mushrooms for four years is an
example of:

O Safeguards

0 Normal trade relations

0 An environmental issue
Which of the following arguments can be used correctly to defend the WTO’s position on emergency protection from
imports? Check all that apply.

D Safeguards can be used to nourish the domestic industry.

D Safeguards are a political necessity for the fonnatlon of trade liberalization policies.

D Developing countries benefit from lifting the trade barriers.

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