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B. sporadic dumping C. continuous dumping D. all of the above
7. A fallacious argument for protection is: A. the infant industry argument B. protection for national defense *C. the scientific tariff
D. to correct domestic distortions
8. Which of the following is true with respect to the infant-industry argument for protection:
A. it refers to temporary protection to establish a domestic industry
B. to be valid, the return to the grown-up industry must be sufficiently high also to repay for the higher prices paid by domestic consumers of the commodity during the infancy period
C. is inferior to an equivalent production subsidy to the infant industry *D. all of the above
9. Which of the following is false with respect to strategic trade policy? A. it postulates that a nation can gain by an activist trade policy *B. it is practiced to some extent by most industrial nations C. it can easily be carried out D. all of the above
10. Industrial policy refers to:
A. an activist policy by the government of an industrial country to stimulate the development of an industry
B. the granting of a subsidy to a domestic industry to stimulate the development of an industry
C. the granting of a subsidy to a domestic industry to counter a foreign subsidy
*D. all of the above
11. Game theory refers to:
*A. a method of choosing the optimal strategy in conflict situations B. the granting of a subsidy to correct a domestic distortion C. the theory of tariff protection D. none of the above
12. Trade protection in the United States is usually provided to: A. low-wage workers
B. well-organized industries with large employment C. industries producing consumer products *D. all of the above
13. The most-favored-nation principle refers to:
*A. extension to all trade partners of any reciprocal tariff reduction negotiated by the U.S. with any of its trade partners B. multilateral trade negotiation
C. the General Agreement on Tariffs and Trade D. the International Trade Organization
14. On which of the following principles does GATT rest? A. nondiscrimination
B. elimination of nontariff barriers
C. consultation among nations in solving trade disputes *D. all of the above
15. Which of the following was not negotiated under the Uruguay Round? A. reduction of tariffs on industrial goods
B. replacement of quotas with tariffs
C. reduction of subsidies on industrial products and on agricultural exports *D. liberalization in trade in most services 思考题：
进口关税和进口配额的经济效应有何不同？
为什么说WTO允许采用的贸易救济措施，如“两反两保”也是贸易保护主义行为？ 我国为什么是全球反倾销的最大受害国？如何应对？
我国面临的反补贴措施的最近情况如何？对我国有何影响？如何应对？ Chapter 10: Economic Integration: Customs Unions and Free Trade Areas Multiple-choice Questions:
1. Which of the following statements is correct?
*A. In a customs union, member nations apply a uniform external tariff
B. in a free-trade area, member nations harmonize their monetary and fiscal policies C. within a customs union there is unrestricted factor movement
D. a customs union is a higher form of economic integration than a common market
2. A customs union that allows for the free movement of labor and capital among its member nations is called a: A. preferential trade arrangement B. free-trade area *C. common market D. all of the above
3. A trade-creating customs union is one where:
A. lower-cost imports from outside the customs union are replaced by higher-cost imports from a union member
*B. some domestic production in a member nation is replaced by lower-cost imports from another member nation
C. trade among members increases but trade with nonmembers decreases
D. trade among members decreases while trade with nonmembers increases
4. A trade-diverting customs union:
A. increases trade among union members and with nonmember nations B. reduces trade among union members and with nonmember nations *C. increases trade among members but reduces trade with non-members D. reduces trade among union members but increases it with nonmembers
5. A trade-diverting customs union results in: A. trade diversion only B. trade creation only
*C. both trade creation and trade diversion D. we cannot say
6. The formation of a trade-creating customs union where all economic resources of member
nations are fully employed before and after the formation of the customs union leads to an:
*A. increase in the welfare of member and nonmember nations B. increase in the welfare of member nations only C. increase in the welfare of nonmember nations only
D. increase or decrease in the welfare of member and nonmember nations
7. A trade-diverting customs union:
A. increases the welfare of member and nonmember nations B. reduces the welfare of member and nonmember nations
C. increases the welfare of member nations but reduces that of nonmembers *D. reduces the welfare of nonmembers and may increase or reduce that of members
8. A trade-diverting customs union is more likely to lead to trade creation: A. the lower are the pre-union trade barriers of the member countries
*B. the lower are the customs union's barriers on trade with the rest of the world C. the smaller is the number of countries forming the customs union and the smaller their size
D. the more complementary rather than competitive are the economies of the nations forming the customs union
9. The theory of customs union is a special case of the theory of: A. effective protection *B. the second best C. the product cycle D. comparative advantage
10. Which is not a dynamic benefit from the formation of a customs union? A. increased competition B. economies of scale C. stimulus to investment *D. trade creation
11. The formation of the EU resulted in:
A. trade creation in industrial and agricultural products B. trade diversion in industrial and agricultural products
*C. trade creation in industrial products and trade diversion in agricultural products D. trade diversion in industrial products and trade creation in agricultural products
12. The benefit that the United States is likely to receive from NAFTA: *A. increasing competition in product and resource markets B. greater technical innovation C. improvements in its terms of trade