Category: Trade Regulations And Industrial Policies

The U.S has granted China permanent most favored nation treatment (normal trade relations) This means that the tariff schedules which apply to U.S imports from china ?

A. have tariff rates equal to zero suggesting a free trade policy for the United States
B. have lower tariff rates than the rates that apply to any other country sending goods to the United States
C. have tariff rates that are identical to the rates that apply to other countries to which the U.S grants most-favored nation treatment
D. have lower tariff rates than the rates that apply to other countries to which the U.S grants most favored nation treatment

To help its firms penetrate Mexico’s radio market suppose the Japanese government provides them a subsidy of $15 for each radio shipped to Mexico As a result of this trade policy ?

A. The price of radios in Mexico equals $60 and its imports equal 30 radios
B. The price of radios in Mexico equals $30 and its imports equal 30 radios
C. The price of radios in Mexico equals $40 and its imports equals 20 radios
D. Th price of radios in Mexico equals $20 and its imports equal 40 radios