International Economics Thomas 17th Edition By Pugel – Test Bank

Chapter 11 Pushing Exports

1) Which of the following refers to dumping?
A) Selling domestic goods in the international market at much lower prices.
B) Selling domestic goods of inferior quality in the international markets at higher prices.
C) Restricting the sale of domestic goods within the geographic boundary of the country.
D) Selling domestic goods at discounted prices to local consumers and selling the same at much higher prices to foreign consumers.

2) ________ occurs when a firm temporarily charges a low price in the foreign export market, with the purpose of driving its foreign competitors out of business.
A) Persistent dumping
B) Cyclical dumping
C) Predatory dumping
D) Seasonal dumping

3) Which of the following is said to occur when a firm lowers its price to limit the decline in the quantity sold during a period of recession?
A) Persistent dumping
B) Cyclical dumping
C) Predatory dumping
D) Seasonal dumping

4) Which of the following is said to occur when a firm lowers its price to sell off excess inventories of a product?
A) Persistent dumping
B) Cyclical dumping
C) Predatory dumping
D) Seasonal dumping

5) Which of the following is said to occur when a firm with market power uses price discrimination between markets to increase its total profit?
A) Persistent dumping
B) Cyclical dumping
C) Predatory dumping
D) Seasonal dumping

6) A firm maximizes profits by charging a lower price to foreign buyers if
A) it has a greater monopoly power in the foreign market than it has in its home market.
B) the foreign demand for its good is more elastic than the domestic demand.
C) the buyers in the home country have access to cheaper imports from the rest of the world.
D) the size of the foreign market is much larger than the home market.

7) Persistent dumping can occur if a profit-maximizing firm faces a ________ demand in the home market and sells its good in a ________ international market.
A) relatively elastic; less competitive
B) relatively inelastic; less competitive
C) relatively inelastic; highly competitive
D) relatively elastic; highly competitive

8) Which country had no antidumping cases until the early 1990s, but became the top initiator of antidumping cases for the time period 2012-2016?
A) Canada
B) India
C) China
D) United States

9) In early 2018, nearly half of all antidumping duties in effect in the United States were on
A) textiles.
B) chemicals.
C) steel products.
D) food grains.

10) Which of the following statements about dumping is true?
A) Consumers and import-competing producers in the importing country are both hurt by dumping.
B) Logically, an import country should never allow seasonal and introductory-price dumping.
C) Dumping helps to improve the importing country’s terms of trade.
D) Predatory dumping occurs quite frequently in modern markets.