1. The _________ industry argument is often given to provide a rationale for tariffs for new firms.
2. Knowledge gained during production is known as _________ by doing
3. If only one firm can exist in a market, a government may try to subsidize the firm so that the country can share in the _________ profits.
4. In the 1950s and 1960s, countries in Latin America used tariffs and other policies in their goal of reducing _________ and promoting domestic industry.
5.The latest trade round is called the _________ round.
6. The _________ was formed in 1995 to oversee GATT.
7.NAFTA took effect in _________ and was implemented over a _________ year period between _________, Mexico, and _________.
8.When Smooth-Hawley tariffs were implemented in the year _________, the average tariff rate in the United States was _________ percent.
9. Price discrimination occurs when a good is sold at _________ (higher/lower/similar/different) prices to different consumers.
10. Under global trade rules, the United States was allowed to ban Chinese bicycles because China violated U.S. dumping rules to enter the American market. _________ (True/False)
11.Suppose the United States has a comparative advantage in textiles that use skilled labor. If the United States trades with China, which has a comparative advantage in textiles using unskilled labor, the wage differences between skilled and unskilled labor will _________ in China.
12.Under a scheme of _________ pricing, a firm cuts its price to drive out rivals and then raises its price later.