Describe the four legal procedures available to U.S. firms to seek protection from foreign competition. What circumstances would warrant a request under each? How frequently is each used? What would be the result if the firm won?
What will be an ideal response?
Countervailing duties are granted in response to foreign subsidies.
Anti-dumping duties are granted in response to imports being sold at "unfair" prices or dumping.
Escape clause relief is granted as a temporary protection against a sudden surge in imports.
Section 301 retaliation is used to unilaterally punish a nation for "unfair" trade.
Generally, tariffs are imposed if a firm is successful in its appeal for subsidies, dumping, or escape clause relief. Section 301 is likely to be a broader response to a country's practices. Anti-dumping duties are the most common today.
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________ bubble is driven entirely by unrealistic optimistic expectations
A) An irrational exuberance B) A credit-driven C) A stock D) A debt-driven
Risk-averse workers
A. are willing to accept large wage decreases in exchange for a safer work environment. B. never work in risky environments. C. are willing to work in riskier environments for a relatively low increase in the wage. D. have shallow wage-risk indifference curves when risk is graphed on the x-axis. E. are more productive than risk-loving workers.
If the market interest rate decreases, then there will _____
Fill in the blank(s) with the appropriate word(s).
Medicare
A. subsidizes the care of middle aged people, which gives them an incentive to consume more medical services. B. subsidizes the care of older people, which gives them an incentive to consume more medical services. C. subsidizes the care of older people, which gives them NO incentive to consume more medical services. D. subsidizes the care of young people, which gives them an incentive to consume less medical services.