A Country Can Impose a Tariff to Improve Its Own

question 61

Multiple Choice

A country can impose a tariff to improve its own terms of trade if it

• A)constitutes a large fraction of the world demand for some commodity that it imports.
• B)has a high level of industrial diversification.
• C)has a significant trade surplus.
• D)imports mostly primary products.
• E)produces and exports a large fraction of the world's supply of some commodity.

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Definitions:

Counteroffer

A proposal made in response to an initial offer, suggesting different terms or conditions.

Resistance Point

The minimum or maximum point beyond which a party will not go in a negotiation; also known as walk-away point.

Basic Strategy

A fundamental plan or set of actions designed to achieve a long-term goal or overall aim.

Negotiator

An individual involved in discussions with the goal of reaching a mutual agreement or resolving differences between parties.