According to the most-favored-nation (MFN) principle,
a. states cannot rely on comparative advantage in their trade policies.
b. goods produced at home are treated the same for import and export agreements.
c. tariff preferences granted to one state must be granted to all others exporting the same product.
d. import quotas can be used to regulate trade, but export quotas cannot be used.
e. certain important trading partners should be given favors status.
A good that everyone benefits from and from which no one can be excluded is a(n)
a. exported good.
b. free rider.
c. collective or public good.
d. commercial good.
e. benefit.
An infant industry is one that
a. is not yet strong enough to compete effectively in the global marketplace.
b. is new to the practice of voluntary export restraints.
c. is accused of dumping products below the cost of production.
d. recently began selling exports.
e. utilizes child labor.
Nontariff barriers include
a. safety regulations.
b. licensing requirements.
c. health requirements.
d. Both options a and c are true.
e. All of the above are true.
Which of the following is not a type of quota?
a. Voluntary export restraint
b. Order market arrangement
c. Countervailing duty
d. Nontariff barriers
e. All of the above are quotas.
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