Explain and give examples of other forms of barriers to free trade besides tariffs and quotas
Other trade barriers include export subsidies to industries that the government wishes to promote. A
government might also impose domestic content requirements that would require that a certain percentage
of a final good's value must be produced domestically, as in the case with NAFTA and the automobile
industry. Additionally, requirements concerning health, safety, or technical standards may reduce trade.
The United States has found this to be true in trading with the various European countries that bar imports
of U.S. beef from hormone-fed cattle; Germany bars importation of many beers; and the different countries
each impose different electrical/electronic standards, further complicating our production of televisions, for
example, for the European market.
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If there is surplus of a good, then the quantity demanded ________ the quantity supplied and the price will ________
A) is less than; rise B) is less than; fall C) is greater than; rise D) is greater than; fall
The profit maximizing combination of resources
A) usually involves more of each input hired than the cost minimizing combination of resources. B) usually involves less of each input hired than the cost minimizing combination of resources. C) usually involves hiring more of some resources and less of other resources than the cost minimizing combination of resources. D) is also the cost minimizing combination of resources.
The FE curve illustrates all combinations of domestic output levels and interest rates for which
A. the domestic product market is in equilibrium. B. there is full employment. C. the domestic money market is in equilibrium. D. there is a zero balance for the country's official settlements balance.
If demand and supply both decrease
A) the equilibrium quantity definitely will decrease, and the market clearing price definitely will decrease. B) the equilibrium quantity definitely will decrease, and the market clearing price definitely will increase. C) the market clearing price definitely will decrease, but the change in the equilibrium quantity cannot be determined without more information. D) the equilibrium quantity definitely will decrease, but the change in market clearing price cannot be determined without more information.