Question 12
Suppose a South Korean company wishes to produce motorcycles, but faces difficult competition from imported motorcycles from Japan, which has a very mature and efficient motorcycle industry. What type of trade protectionism might the South Korean company seek?
| a. |
antidumping duties |
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| b. |
countervailing duties |
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| c. |
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| d. |
tariffs based on infant industry protection |
3.33 points
Question 13
To qualify for trade protectionism measures to combat antidumping, the imported products must
| a. |
be produced by countries with poor environmental records. |
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| b. |
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| c. |
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| d. |
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12. Answer :
d. tariffs based on infant industry protection
The infant industry argument is an economic rationale for trade protectionism. The core of the argument is that nascent industries often do not have the economies of scale that their older competitors from other countries may have, and thus need to be protected until they can attain similar economies of scale
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13. Answer :b) be priced below the cost of production or below the price sold in the exporting country
Dumping is a term used in the context of international trade. It's when a country or company exports a product at a price that is lower in the foreign importing market than the price in the exporter's domestic market
Question 12 Suppose a South Korean company wishes to produce motorcycles, but faces difficult competition from...
Chapter overview 1. Reasons for international trade Resources reasons Economic reasons Other reasons 2. Difference between international trade and domestic trade More complex context More difficult and risky Higher management skills required 3. Basic concept s relating to international trade Visible trade & invisible trade Favorable trade & unfavorable trade General trade system & special trade system Volume of international trade & quantum of international trade Commodity composition of international trade Geographical composition of international trade Degree / ratio of...