Describe aspects of customs valuation practices that are controversial in the world of international trade, such as how countries establish import tariffs
Also, how does the WTO protect against potentially abusive practices when determining appropriate tariffs.
Countries that seek to provide high levels of protection to local industries and/or want to increase tariff revenues have often instructed customs officials to use methods that would raise estimates of the values of imports, such as adding a fixed percentage to the listed price of the import to cover the cost of freight and insurance. Often practices such as these would lead to corruption, since importers would seek to cut deals to secure lower valuations and pay lower tariffs. Article VII of the WTO agreement states that tariff systems must "conform to commercial realities, and outlaw the use of arbitrary or fictitious customs values."
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A. For a given nominal interest rate, the real interest will decrease if inflation decreases. B. For a given expected inflation rate, the nominal interest must increase if real interest decreases. C. For a given real interest rate, the nominal interest must increase if expected inflation increases. D. For a given real interest rate, the nominal interest must decrease if expected inflation increases.
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A. is the set of all affordable combinations of two goods. B. includes only combinations of two goods that leave the consumer with leftover money. C. includes only combinations of two goods that exhaust the budget. D. Both is the set of all affordable combinations of two goods and includes only combinations of two goods that exhaust the budget are correct answers.
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