Which Policy Reflects the Notion That If Society Enjoys Gains

question 173

Multiple Choice

Which policy reflects the notion that if society enjoys gains that are due to increased efficiency stemming from trade liberalization, some sort of compensation should be provided to those who are temporarily hurt by import competition?

• A) countervailing duties
• B) trade adjustment assistance
• C) domestic subsidies
• D) most-favored-nation standard

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Definitions:

Merger Clause

A clause in a written agreement within the statute of frauds that states that the written agreement accurately reflects the final, complete version of the agreement.

Statute of Frauds

A legal principle that requires certain types of contracts to be written and signed to be enforceable.

Obligor's Consent

The necessary agreement or permission from the party obligated to perform under a contract or legal duty.

Parol Evidence Rule

A legal principle that prohibits the use of oral or written statements made prior to or at the time of a written contract to change or contradict the terms of the contract.