KTQT P3

The form of international price discrimination (dumping) normally associated with economic recession or excess inventories in the exporting nation is known as

• predatory dumping

• sporadic dumping

• persistent dumping

• year-end dumping

The form of dumping that represents the greatest potential net welfare loss the for importing nation is

• predatory dumping

• sporadic dumping

• persistent dumping

• year-end dumping

______ occurs when a firm disposes on foreign markets a temporary increase in inventories caused by unforeseen changes in supply and demand conditions in the home economy

• sporadic dumping

• predatory dumping

• persistent dumping

• foreign dumping

According to the cost-based definition of dumping, dumping occurs when a firm sells a product abroad at a price that is less than

• average total cost

• average variable cost

• average fixed cost

• marginal cost

What type of trade barrier was used to protect U.S. auto firms from foreign competition during 1981-1984?

• export quotas imposed by the Japanese government

• export tariffs imposed by the Japanese government

• import quotas imposed by the U.S. government

• domestic subsidies granted by the U.S. government

A ______ allows a specified number of goods to be imported each year, and it not specifies from where the product is shipped and who is permitted to import

• import quota

• export quota

• selective quota

• global quota

Buy national policies

• result in government purchase policies favoring domestic over foreign producers

• result in government purchase policies favoring foreign over domestic producers

• attempt to restrict the number of tourists leaving a nation

• are intended to publicize the advantages of the most efficient domestic companies

Which company in the United States would likely be most concerned about Brazil’s dumping of steel in the U.S. market?

• General Motors, the manufacturer of automobiles

• Tennessee Mining Co., an iron-ore mining company

• Caterpillar Corp., the producer of earth-moving equipment

• Sneva Construction Co., the builder of skyscrapers

The firm would maximize profit by selling _____ computers in the United States at a price of _____ and _____ computers in Japan at a price of _____

• 200, $2,000; 100, $1,000

• 300, $1,800; 300, $600

• 300, $1,800; 400, $800

• 500, $1,400; 400, $800

By practicing price discrimination, the firm would realize profits totaling:

• $160,000

• $420,000

• $540,000

• $660,000